Tag: 2020

Steve Reed – 2020 Comments on IFS Report on Financial Risk for Councils

Below is the text of the comments made by Steve Reed, the Shadow Communities and Local Government Secretary, on 22 June 2020.

The funding that councils have received is nowhere near enough to cover the cost of getting communities through this crisis. Now councils face a massive financial black hole that will hit poorer areas hardest.

By law councils will be forced to make devastating in-year cuts that will see frail older people denied care, libraries and leisure centres shut for good and bins left unemptied.

The Conservatives have broken their promise to fund councils to do whatever’s necessary. Instead of levelling up they are leaving communities without the funding they need to get through the pandemic at their time of greatest need. They should stand by their promises.

June 22, 2020
Dominic Raab – 2020 Statement on the DFID-FCO Merger

Below is the text of the statement made by Dominic Raab, the Foreign Secretary, in the House of Commons on 18 June 2020.

I begin by thanking the hon. Lady and welcoming this opportunity to respond to her question on the merger between DFID and the FCO. On Tuesday, the Prime Minister announced that they will merge to become the Foreign, Commonwealth and Development Office. I can tell the House that the process will start immediately and will be completed by September. Alongside this merger, Her Majesty’s trade commissioners will now report formally to the ambassadors and high commissioners in their respective countries. The Prime Minister will set the UK’s overall international strategy, through the National Security Council, and by integrating development policy with our diplomatic network, the UK will be following a similar model to that of some of our closest international partners, such as Australia and Canada.

This move is about placing our world-class aid programme at the beating heart of our foreign policy decision making. We will integrate the development expertise and know-how that DFID does so well with the diplomatic reach and clout of the Foreign Office, ensuring that our impact abroad is bigger than the sum of its parts. Far from diminishing our ambitions, it will elevate them. As the Prime Minister set out on Tuesday, we retain our commitment to spending 0.7% of our gross national income on development, but through closer integration we will maximise the impact of our aid budget in helping the very poorest in the world, while making sure we get the very best value for taxpayers’ money.

For too long, we have indulged an artificial line, dividing the goals that our aid budget and foreign policy serve. This coronavirus crisis has confirmed just how artificial that line is. Across Whitehall, I have chaired the international ministerial group, bringing all relevant Departments together to support the most vulnerable countries exposed to covid-19; to energise our pursuit of a vaccine, working with our international partners; to return stranded British citizens from abroad; and to keep vital international supply chains open. In every one of these areas, we have been compelled to align our development, trade, security and wider foreign policy objectives. As in many a crisis, necessity has proven the mother of innovation. For example, at the GAVI vaccine summit, which the Prime Minister recently hosted, we smashed the target for vaccine funding, with $8.8 billion raised. That was a major success, where our development and foreign policy objectives had to be integrated to serve our dual aim of securing a vaccine for the British people, while making it accessible for the most vulnerable people, right across the world. Likewise we are working to bolster the health systems and institutional resilience of the most vulnerable countries, doing so not only out of a sense of moral responsibility, but to safeguard the UK from a potential second wave of the virus. I am afraid those demarcating a boundary between our national interests and our moral responsibilities in the world are mistaken. Covid has reinforced just how inextricably interwoven they are, just how much they reinforce each other and why we need to integrate them in our foreign policy decision making. It is to boost our impact and influence in the world, and that is exactly what we are doing.

June 22, 2020
Matt Hancock – 2020 Statement on the Coronavirus

Below is the text of the statement made by Matt Hancock, the Secretary of State for Health and Social Care, in the House of Commons on 17 June 2020.

I am grateful for the chance to update the House on the urgent matter of coronavirus.

Yesterday’s treatment breakthrough shows that British science is among the best in the world. As a nation, we can be incredibly proud of our scientists. The UK is home to the best clinical trials, the most advanced immunology research, and the most promising vaccine development work of any country. We have backed the science from the start, and I am sure the whole House welcomes the life-saving breakthrough that was announced yesterday. Today, I will briefly update the House on all three aspects of that national scientific effort.

First, on clinical trials, our recovery programme, which looks at the effects of existing treatments in real-world hospital settings, is the largest of its kind. As of yesterday, 11,547 NHS patients had been recruited to the programme, which is operating across 176 sites in all four nations. In Oxford University’s dexamethasone trial, over 2,000 NHS covid patients were given a course of the drug—a commonly used steroid—over 10 days. For patients who were ill enough to require oxygen, the risk of dying fell by a fifth, and for the most seriously ill patients on mechanical ventilators, the risk of dying fell by over a third.

This is an important moment in the fight against this virus, and the first time that anyone in the world has clinically proven that a drug can improve the survival chances for the most seriously ill coronavirus patients. In February we began the trial, supported by £25 million of Government funding, and in March we began recruiting patients, and started the process of building a stockpile in case the trial was successful. As of today, we have 240,000 doses in stock, and on order. That means that treatment is immediately available, and already in use on the NHS. I am incredibly proud that this discovery has happened right here in Britain, through a collaboration between the Government, the NHS, and some of our top scientists. It is not by any means a cure, but it is the best news we have had.

Throughout this crisis, our actions have been guided by the science, and that is what good science looks like: randomised control trials; rigorous and painstaking research; moving at pace, yet getting it right. The result is that we now have objective proof—not anecdotes, but proof—that this drug saves lives, and that knowledge will benefit many thousands of people all around the world.

Seven other drugs are currently being trialled as part of the recovery process, and a further nine drugs are in live clinical trials as part of the ACCORD programme, which is looking at early-stage treatments. We look forward to seeing the results of those trials. I thank everyone involved in that process, and put on the record my thanks to our deputy chief medical officer, Professor Jonathan Van-Tam, who led the work in Government, as well as to NHS clinicians, the scientific teams, and the participants in the trial who took the drug before they knew that it worked.

Our immunology research, again, is world leading. Last month I announced a new antibody testing programme to help us understand the immunological response to the disease, and whether someone acquires resistance to coronavirus once they have had it and recovered. I am part of that programme, and as of yesterday, 592,204 people have had an NHS antibody test. The nature of immunity research means that it takes time, and we must wait to see whether someone with antibodies gets reinfected. However, with every test, we improve our picture of where the virus has been, and we grow the evidence to discover whether people who have had the disease and have antibodies are at lower risk of getting or transmitting the virus again.

Crucially, that work will help to inform how we deploy a vaccine, and it is moving at pace. Earlier this week Imperial College began its first phase of human clinical trials, and 300 participants will receive doses of the vaccine. Should they develop a promising response, Imperial will move to a large phase-3 trial later this year. Yesterday, AstraZeneca signed a deal for the manufacture of the Oxford vaccine, AZD-1222, which is the world’s most advanced vaccine under development. Its progress, while never certain, is promising.

None of that happened by accident. It happened because the British Government, scientists, and the NHS put in place a large-scale, programmatic, comprehensive, well-funded, systematic, rigorous, science-led system of research and innovation. We have been working on it since the moment we first heard of coronavirus. There is more to do in this national effort, but that is how we will win the battle. We will leave no stone unturned as we search for the tools to hunt down, control, and ultimately defeat this dreadful disease.

Mr Speaker

May I just say to the Secretary of State that he has gone way over the allocated time? It would have been easier for him to make a statement rather than having to have an urgent question. In future, perhaps he could come forward with a statement if he needs the extra time, and I will certainly grant that and support him in doing so. Some extra time for Jonathan Ashworth as well, and for Philippa Whitford.

June 22, 2020
Tim Farron – 2020 Speech on Bus Fare Data

Below is the text of the speech made by Tim Farron, the Liberal Democrat MP for Westmorland and Lonsdale, in the House of Commons on 16 June 2020.

I am very grateful, Madam Deputy Speaker.

I support the spirit of these regulations. We must have equity of access to public transport across the country, and the collection of data to build an accurate picture of services is an essential part of that. However, I must warn the Minister that she will have a hard task collecting data on bus services in many towns and villages in Cumbria, because on most days there aren’t any, or at least it is so far that it will be a very short job and hardly worth the journey—which, in case I have not already made myself clear, she would not be able to make by bus.

I acknowledge that the Government have gone some way towards recognising the crisis in bus services, such as by laying these regulations, and indeed earlier this year there was an announcement of additional funding and the unveiling of a national bus strategy, of which I am sure this forms a key part. But the new funding turned out to be peanuts, and while having a strategy is definitely better than not having a strategy, it was still a far cry from the claims of the press release and light years off providing the solutions needed in communities like ours, where we would like these regulations to apply in practice.

So, to be clear, the whole of Cumbria received a total of £383,887, which, split roughly six ways between six constituencies, means about £65,000 for my constituency. My constituency could contain geographically every single one of the 73 constituencies in Greater London, and London—where these regulations will definitely apply —sees an annual subsidy to its public transport of around £700 million a year. And we must not forget that our £65,000—just less than a thousandth of 1% of the London subsidy—is just a one-off, and a one-off will not do.

Ministers surely know that research shows that in order for a community to trust a bus service enough to rely on it as part of their regular routines—enough to use it, basically—that service needs to be functioning reliably and affordably for two to three years. I am sure that the data collected as a consequence of this regulation will show that and prove it, but we know it already.

So this short-term puddle of cash does not even wet the feet of the problem. We will find a way of spending it wisely, and we are not ungrateful, but as we dare to hope for a time beyond the covid crisis, people in my communities want to believe that we have not sacrificed so much, endured such hardship and suffered such shattering loss just to go back to how things were beforehand.

The mission must be to build back better, and that must include a refusal to leave communities behind. Rural, more isolated communities such as ours in Cumbria are at risk. Those communities are also often older, and while the majority of people, even in their 80s and beyond, will make some use of the technology we are talking about here, a higher proportion than in other age groups will not, and they are the people I am most concerned about in terms of the application of these regulations.

The average age of the population in South Lakeland is 10 years above the national average. It cannot be right that we forget the generation that has borne the brunt of this virus, yet we will do that if we acquiesce over the isolation that so many of them endure. Many I know have found themselves alone and disconnected in their later years, with the loss of bus services leaving them stranded in places that are utterly beautiful but utterly isolated. Many in these towns and villages rely on buses for the basic tasks of daily life—shopping, going to the doctors, making appointments, seeing friends or getting to work. Buses, when they exist, provide those people with the ability to look after themselves, be independent, protect their physical and mental health, and stave off the loneliness that isolation can bring. Technology can help to underpin that, but only if there is a service that it can be underpinned by.

There is no doubt that more of us have become acquainted with isolation over the last few months, but what is someone who lives in a small village and is unable to drive supposed to do if their one transport link is removed? At the same time, they witness the closure of accessible services as a consequence of the technology that is available in other parts of the economy. With few neighbours and fewer local services, the loss of buses constitutes the loss of connection, which risks leaving many more people even more isolated and vulnerable.

Building back better must mean that we learn from the improvement in air quality and the reduction in greenhouse gas emissions throughout this time, and public transport is key to preventing a return to pre-covid carbon emissions. Bus services will be central to that, as part of an integrated public transport system. That is why I continue to urge the Minister to double the capacity of the Lakes line by introducing a passing loop, as well as electrifying the line to significantly reduce its carbon footprint.

Many of us are excited for a time when lockdown has eased and we are able to see friends and family and visit the shops without unnecessary restrictions and caution. But the Government must recognise that the end of the lockdown will not bring that relief to everyone. In fact, for many isolated people in Cumbria, the official lockdown has not looked very different from the growing isolation that they have suffered due to a lack of services and transport links. In the 10 years between 2008 and 2018, the north-west lost 888 separate, distinct services, and that does not include the services we have lost in the last couple of years. We have not taken this lying down. We would love those services to be traced by an app and part of a technological solution, but as I say, there is no point having the technological solution if there is no bus service to underpin it.

It is not only the elderly in our communities who suffer from reduced bus services. Young people’s access to public transport is also under threat. Free school transport is provided for young people up to sixth-form age, but after that, the support is not available. It makes no sense for the Government to demand that young people carry on in education until 18 and then deny them the ability to afford to do so—a generation that clearly is technologically competent and able to make use of the apps we are talking about. In places like Sedbergh and Coniston, it is often impossible to gain access to sixth-form provision at schools or colleges by public transport. That is why, alongside these regulations, there needs to be a statutory responsibility for local authorities to guarantee home-to-school transport for 16 to 18-year-old students, in the same way there is for under-16s.

There must also be buses available to deliver that transport in the first place. In many of our towns and villages, if the Minister did agree to subsidise sixth-form bus travel alongside this technological innovation, there just are not any services to be subsidised. That has been emphasised during the covid crisis, as many families with free school meal vouchers have not been able to use them because the vouchers are not for the local supermarket in their town—

Madam Deputy Speaker (Dame Rosie Winterton)

Order. The hon. Gentleman is going way off the scope of the regulations. If we are discussing regulations, that is what we are discussing. We cannot not have a general speech about everything that is happening in his constituency, as important as that is. This debate is about the regulations, and I urge him to return to them ASAP.

Tim Farron

I will do so instantly. I make the point, though, that the whole point of having the technology that is rightly rolled out through this statutory instrument is that it should apply to services that exist, not imaginary ones that we wish existed. My community is suffering under covid like anywhere else, but the hospitality and tourism industry is vital to us. We are the second biggest visitor destination after London, and yet our public transport infrastructure means that this instrument may as well not exist for many of the communities that I represent. While I support the regulations and will not oppose them, I want to send the Government the message that they should ensure that there are sufficient services in rural communities like mine, so that these applications actually have some application in a county like Cumbria.

June 22, 2020
Matt Rodda – 2020 Speech on Bus Fare Data

Below is the text of the speech made by Matt Rodda, the Labour MP for Reading East, in the House of Commons on 16 June 2020.

It is a pleasure to respond in this debate on behalf of the Opposition. I am grateful to the Minister for the detailed technical briefing she offered me from the Department. We will not be calling for a vote on these proposals. I will respond to the specific measures and new powers set out in the SI, but I also want to comment on how the proposals help to address the wider issue of how we can improve our bus services, which outside of London and a handful of other areas have faced deep cuts in recent years.

Before I respond, I put on record my support for our bus services and the workforce who have been on the frontline during the coronavirus crisis. I pay tribute to our bus drivers and other transport workers. They are key workers who have kept vital public services running during the most serious and sustained crisis this country has faced since the second world war. The public are immensely proud of our key workers, and I hope the House will agree that it is important that bus workers are recognised as key workers and receive the support that they deserve.

It is also important to remember that a number of bus workers and other transport workers have sadly died during the pandemic. I offer my deepest condolences to their families, and I hope Members from all parts of the House will join me in support of those and other key workers who have paid the ultimate price in our struggle with the coronavirus. I urge the Government to look again at health and safety on bus services and the financial support available for the families of those workers who have lost their lives. That is vital in the coming weeks.

I am pleased that the Government have listened to calls from Labour and the unions for passengers to have to wear masks on public transport. I should say I was one of those passengers today. There is more to do to improve health and safety, such as tackling the risk of infection from drivers having to handle cash on buses and providing improved facilities for hand washing, which I know the Minister’s colleague in the Lords, Baroness Vere, is interested in supporting. I am also pleased that at a time of national crisis, we have been able, as the official Opposition, to work with the Government, trade unions and bus operators to consider these important problems, and I look forward to Ministers coming forward with further urgent improvements to health and safety.

Before turning to the regulations, I will mention the significant economic effects of the crisis on bus operators and workers. We welcome the Government’s financial support for bus services during the coronavirus crisis and as lockdown eases. However, I underline the importance of that being applied fairly. Support needs to be maintained while demand for bus travel returns to normal, which could take some months.

The current funding package is welcome, but it is offered to bus companies on a flat rate per mile, which is then multiplied by the distance of the routes that they travel. That inadvertently favours some rural routes and areas with lower wage costs, while disadvantaging urban or suburban operators, particularly those in areas where housing costs and costs of living are higher. I hope Ministers will look again at that and offer a fair deal to the whole country. Will the Minister meet me and MPs from all parts of the House who have concerns about this important issue? I note that she is nodding, and I am grateful for her support.

It is also important that the Government review the length of time that support is available to reassure operators about the future of their businesses, as we have seen for other sectors of the economy, and to help them to plan for a gradual increase in passenger numbers. I understand that some operators are now experiencing around 20% of normal demand, up from just 10% during the height of the crisis. However, it is unclear how long it will take for passenger numbers to return to normal, and the current funding package ends during the summer. A further guarantee of funding would be welcome for the industry.

Turning to the substance of the regulations, which are intended to help the bus sector, it is positive to see the Government’s interest in our bus services. That has not always been the case in recent years, despite buses being the most common mode of transport for commuters and, indeed, a lifeline for older and vulnerable people. Since 2010, Government funding for bus services has fallen by 45% and hundreds of routes have been lost, largely because of Government cuts to subsidies for socially vital services, as many Members will know. This policy has led to a steep decline in bus use and, I am afraid, increasing isolation, other social problems and, indeed, greater damage to the environment. I should add that things have got so bad that two major bus operators have thought about selling off large parts of their business.

Ian Paisley (North Antrim) (DUP)

Does the hon. Gentleman agree that the best way for the Government to address those matters is urgently to introduce a national bus strategy, which would put in place a hydrogen technology programme that would allow the development of a new bus building programme that would be totally free of a carbon footprint?

Madam Deputy Speaker (Dame Rosie Winterton)

Order. I am anxious that we stick to the substance of the regulations. Matt Rodda.

Matt Rodda

Thank you, Madam Deputy Speaker. I thank the hon. Gentleman for his intervention. I am going to try to cover the environment and other forms of innovation later in my speech.

Ministers are now trying to find ways to address the need to grow bus use, and the regulations address one small aspect of that, which is to allow greater sharing of bus data on timetables, fares, reliability and, indeed, the location of buses in real time. The Department hopes that making more information available to app developers will lead to more information about bus services being made available to the public, which in turn will increase passenger numbers. There are hopes that those measures could lead to a growth of about 2% in bus use, based on the effect of the policy in London.

I would, however, add a note of caution. First, I would ask the Minister to reassure the House that the Government’s intention is not to allow disruptive businesses like Uber to try unfairly to entice passengers away from bus services, which could risk undermining some routes, including those that are a lifeline for older people and many who are vulnerable. I hope that she will address that point when she sums up and offer specific reassurance. Secondly, I urge her to regard the measure as one in a series which, I hope, will support our bus services and allow them to grow, both now and in future.

Going forward, I hope that the Government will offer the same level of interest and support for a series of measures that have been shown to increase bus use and improve services. One of the best known is allowing councils to regulate services, which has been associated with much greater bus use in London, where there is a dramatically different picture of bus patronage. Will the Minister look at that again and allow all councils to explore that option, not just those with elected Mayors?

Another measure that is strongly associated with growing bus use is allowing councils to run their own bus companies, which used to be common in both Labour and Conservative-controlled local authorities. Council-owned companies in my own town of Reading and in Nottingham have experienced strong growth in bus use for many years—something that, outside London, is almost unique in England. Municipal buses offer low fares, frequent services and modern vehicles that are popular in those communities, and I invite the Minister to come to Reading. [Interruption.] I understand, Madam Deputy Speaker, and I will proceed rapidly through the rest of my speech.

Madam Deputy Speaker (Dame Rosie Winterton)

Order. I simply want to make sure that the hon. Gentleman is addressing the regulations.

Matt Rodda

I will come back to them. This is part of the wider picture of the need for investment as a whole.

There are a range of other measures that I hope Ministers will reconsider, along with the regulations. For example, that could include more bus lanes and other bus priority measures to ensure more reliable services on busy roads and smarter support for innovation, which the hon. Member for North Antrim (Ian Paisley) mentioned, including electrification of buses. The Government’s current scheme is welcome, but it could be improved, and I look forward to speaking to the Minister about that.

I hope that Ministers will look at the link between transport and new housing, and do more to develop brownfield sites and other ways of bringing housing close to public transport routes, which will increase bus patronage and protect the environment. Allowing more investment and such innovation measures would offer the prospect of significant growth in bus use, leading to real environmental and social benefits, far beyond the potential benefits of the app.

To sum up, we are not calling for a vote on these regulations for the reasons I stated earlier. I thank colleagues across the House for their support for bus workers and bus services. I hope the Minister will respond to the risk that these measures could be misused and that the Government will now carry out a wider review of their support for buses, to allow councils more powers to regulate and to provide better services, which have the potential to allow far greater bus use in the future.

June 22, 2020
Rachel Maclean – 2020 Statement on Bus Fare Data

Below is the text of the statement made by Rachel Maclean, the Parliamentary Under-Secretary of State for Transport, in the House of Commons on 16 June 2020.

I beg to move,

That the draft Public Service Vehicles (Open Data) (England) Regulations 2020, which were laid before this House on 13 May, be approved.

The draft regulations are being made in order to provide new legislation to require bus operators of local bus services across England outside London, including cross-border services, to openly publish data electronically about their services, including timetables, fares and location data.

This is open data that is published electronically. It is publicly discoverable and can be used by those who wish to do so without restrictions on its use and disclosure. Open data has transformed other sectors—for example, rail—with open data feeding customer-facing apps, such as Trainline and National Rail Enquiries, simplifying journey planning and ticket purchase. Bus open data will allow app developers to create applications, products and services for passengers so that they can plan journeys, find best-value tickets and receive real-time service updates. That is absolutely essential if we are to encourage the travelling public to use their local bus services and make the switch to public transport, which is vital to reducing congestion and improving air quality.

Since 2007, Transport for London has made all its bus and transport network data freely available through the London data store. Currently, more than half of these journeys—51%—are in London, with the remaining 49% across the rest of the country. Apps such as Citymapper and Bus Times are together found to be delivering economic benefits of between £90 million and £130 million a year.

Transport for West Midlands has also invested heavily to improve its public transport data in recent years and is one of the few areas to report year-on-year growth— of 7.8 million journeys—against a continuing backdrop of decline in bus passenger journeys elsewhere. Those statistics show that we can change how buses are perceived and attract new customers.

Currently, Citymapper only operates in Birmingham and London, but we need to enable the provision of such apps and services up and down the country. For example, the rules will mean that any operator of a local bus service across England must publish their timetable, fares and location data to the bus open data service before that service comes into operation. The rules will be enforced by the Driver and Vehicle Standards Agency, which will be able to conduct checks to ensure that the operator is complying.

In domestic law, where a local bus service is being operated across England, operators will be legally required to make the information freely available to comply with the Public Service Vehicles (Open Data) (England) Regulations 2020. Punctuality data will also be legally required and local transport authorities will be legally responsible for maintaining data about bus stops and stations.

It is a civil offence for any operator of a service to be in breach of the requirements in the regulations and the regulations will be commenced in a phased manner, with timetables and stop data requirements being enforceable from 31 December 2020. Basic fares and location data will be enforceable from 7 January 2021, with complex fares being added from 7 January 2023. Breaches of the requirements by operators can be enforced under existing provisions in section 155 of the Transport Act 2000. The draft instrument ensures that those operators who breach the new requirements may be faced with financial penalties or the removal of their licence. The fines can be up to £550, and that sum might be multiplied by the number of vehicles operating under all the PSV operator licences held. The policy area of public service vehicles open data is devolved, but Scotland and Wales are currently preparing equivalent legislation.

In summary, the regulations are essential for ensuring that the operators of local bus services are compelled to make essential information freely available to help passengers plan their journeys. The rules are at the heart of improving the public transport experience, digitally transforming the bus sector and the levelling-up agenda. I am sure that Members share my desire to ensure the rules can be fully enforced as soon as possible. I commend the regulations to the House.

June 22, 2020
Rachael Maskell – 2020 Comments on Covid-19 and the Charity Sector

Below is the text of the comments made by Rachael Maskell, the Shadow Minister the Voluntary Sector and Charities, on 19 June 2020.

The economic challenges of Covid-19 have had a devastating impact on charities. Charities have lost much of their income and half of charity staff have been furloughed. Without further support measures, there may be many more significant redundancies across the sector.

Many people across the country rely on the variety of services and support the charity sector provides. However, while fundraising is limited and without Government intervention, many of these charities will be unable to cope with the increased demand of their services.

This is deeply concerning and Labour is calling on Government to provide the recovery support needed. Not to do so will place enormous pressure on public services and will result in many people in our communities struggling without the vital support and care they need.

June 21, 2020
Pat McFadden – 2020 Speech on Financial Markets after Exiting the European Union

Below is the text of the speech made by Pat McFadden, the Labour MP for Wolverhampton South East, in the House of Commons on 16 June 2020.

Like many who have spoken in the Chamber today, on the fourth anniversary of her death, my thoughts are very much with our former colleague Jo Cox and her family.

As we heard from the Minister’s opening statement, these statutory instruments are quite technical in nature. I would like to thank him for his welcome, and to thank him and his officials for providing some briefing on their meaning and effect. Overall, these instruments seek to replicate at national level the regulatory regime for financial services to which we currently subscribe—and which in many cases the UK designed—at EU level. Until the end of the transition period, we will of course continue to follow the EU’s regulatory rulebook. This is about what will happen in January if, as the Government confirmed last week, the end of this year marks the end of the transition period.

As the Minister outlined, the regulations cover areas such as money laundering, supervision, central counterparties, the cross-border distribution of funds and the desire to maintain the pre-Brexit relationship between the UK and Gibraltar on financial services. In most of these cases, they are taking the supervision of the rules governing these areas from EU bodies and transferring them to either the Treasury, the Bank of England or the Financial Conduct Authority.

On the detail, I have a few questions I would like to put to the Minister. On the money laundering provisions, why is the current duty to co-operate with supervisors in other countries being removed and replaced with the weaker power to co-operate if we so choose? In what circumstances would we not want to co-operate to tackle money laundering, which can fund everything from international terrorism to the drugs trade? On cross-border distribution of funds, can the Minister confirm that these statutory instruments enshrine the loss of passporting rights for our financial services that will result from the Government’s decision to withdraw from the single market as well as from the EU itself? On equivalence determinations, can he confirm that, although these SIs create a regime for the UK to make decisions on the regulatory regime in other countries, as yet we have no guarantee that our own regulatory regime will be regarded as equivalent by the rest of the EU?

We can only hope that this exercise in taking back control is a little more convincing than last week’s decision on border checks from the Cabinet Office. After having four years to prepare, the Government dropped their plans for border checks on goods because we simply could not implement them, even though our own goods will be subject to border checks when we export them overseas.

Paragraph 36 of the political declaration, on which the current negotiation is based, states that the UK should have concluded its equivalence assessments by the end of this month. If we are only now legislating to take the powers to do that, can that exercise possibly be completed in just two weeks’ time?

Taken together, these changes and others in similar statutory instruments represent a significant increase in the functions and power of the Treasury, the Bank of England and the Financial Conduct Authority. What accountability arrangements will there be for those bodies in the exercise of their new powers? Alongside the transfer of functions, accountability must surely be enhanced if claims of restoring parliamentary sovereignty are to mean anything in reality.

More broadly, there is an obvious contradiction at the heart of all this. These regulations are intended to ensure continuity for UK financial services at the end of the transition period, yet the Government’s stated intention for withdrawal is to erect new trade barriers between our financial services and the rest of the EU, so even as we replicate at UK level the EU regulations that we played such a big part in designing, we are pursuing a course that will be incapable of replicating the market access that we have at the moment.

That is not my judgment; it is the stated aim of Government policy. It is the equivalent of one of the shops reopening this week and putting lots of new stock in its window but telling a substantial proportion of its previous customers that they are no longer welcome to shop in the store. For all the debate there has been about Brexit, its impact on services has not been debated nearly as much as it should have been.

We are not dealing here with just-in-time supply chains and trucks on ferries; we are dealing with regulations and rules. We are taking the area that makes up 80% of our economy and, in the case of financial services, a sector in which we trade at a substantial surplus with other countries, and inserting new barriers between us and our nearest customers. The fact that the sector is resigned to that and has established alternative bases in Dublin, Luxembourg or wherever does not change the reality of it.

We do not intend to divide the House on these measures, because regulatory continuity is better than not having a regime in place at all, but no amount of duplication can avoid the basic fact that although we can replicate the rules, we cannot replicate the market access to which these rules apply at the moment and for which they were designed in the first place.

June 21, 2020
John Glen – 2020 Statement on Financial Markets after Exiting the European Union

Below is the text of the statement made by John Glen, the Economic Secretary to the Treasury, in the House of Commons on 16 June 2020.

I welcome my opposite number, the right hon. Member for Wolverhampton South East (Mr McFadden), to his place. He has a distinguished history of public service and I look forward to a constructive dialogue with him today and on future occasions.

As the House will be aware, the Treasury has been undertaking a significant programme of financial services legislation since 2018, introducing almost 60 statutory instruments under the European Union (Withdrawal) Act 2018. It has been an enormous privilege for me to do the vast majority of those measures. These SIs were made prior to exit day—31 January 2020—and covered all essential legislative changes needed to ensure a coherent and functioning financial services regime at the point of exit, had the UK not entered a transition period.

The European Union (Withdrawal Agreement) Act 2020 received Royal Assent in January this year. The 2020 Act contains a general rule that delays those parts of the SIs that would have come into force immediately before, on or after exit day, so that they instead come into force by reference to the end of the transition period, which we leave at the end of this year. Over the course of this year the Treasury will therefore, where necessary, continue to use powers under the European Union (Withdrawal) Act 2018, as amended by the 2020 Act, to prepare for 1 January 2021. This will involve the Treasury bringing forward a small number of SIs that, in particular, will ensure that recently applicable EU legislation will operate effectively in the UK at the end of the transition period. The SIs before the House today are two such instruments. The approach taken in these SIs is aligned with the general approach established by the EU (Withdrawal) Act 2018, providing continuity by retaining existing legislation at the end of the transition period but amending where necessary to ensure effectiveness in the UK-only context.

I turn to the draft Over the Counter Derivatives, Central Counterparties and Trade Repositories (Amendment, etc., and Transitional Provision) (EU Exit) Regulations 2020. From now on, I will refer to this instrument as the OTC SI. In preparation for the UK’s withdrawal from the EU on 31 January 2020, Parliament approved several EU exit instruments to ensure that the European market infrastructure regulation would continue to operate effectively in the UK at the point of exit. EMIR was updated on 1 January this year by a regulation known as EMIR 2.2, which now applies in the UK. The OTC SI that we are discussing today address deficiencies in the UK’s post-transition framework arising as a result of that update.

EMIR is Europe’s response to the G20 Pittsburgh commitment in 2009 to regulate over-the-counter derivative markets in the aftermath of the last financial crisis. EMIR mandates the use of central counterparties, known as CCPs, to manage risk between users of derivative products. EMIR has been effective in increasing the safety and transparency of derivative markets, thereby reducing the associated risks that users may face, and UK CCPs play an essential role in reducing systemic risk and ensuring the efficient functioning of global financial markets.

EMIR 2.2 introduced an updated third country or non-EU CCP supervision framework, including an updated recognition regime. This means that EU authorities can have greater oversight over third country CCPs that are systemically important to the EU. Perhaps the most substantial update in EMIR 2.2 is the ability for the European Securities and Markets Authority to tier third country CCPs according to their systemic importance to the EU as part of the recognition process. ESMA will now take on certain supervisory responsibilities for systemic third country CCPs known as tier 2 CCPs.

This OTC SI updates the UK’s recognition framework in line with EMIR 2.2 by transferring ESMA’s new powers to the Bank of England after we leave the transition period. That includes the ability to tier non-UK CCPs as part of the recognition process, and to supervise non-UK CCPs that are systemically important to the UK. The Bank of England has already been given the power to recognise non-UK CCPs wishing to operate in the UK in an earlier SI under the EU (Withdrawal) Act. EMIR 2.2 also empowers the Commission to adopt delegated Acts setting out the details of how the framework will function in practice. This includes how tiering and deference to the rules of home authorities referred to as “comparable compliance” will function. This instrument transfers the power to establish these frameworks to the Bank of England.

Since the Bank already has responsibility for safeguarding financial stability in general, and managing systemic risk in CCPs in particular, this is an appropriate conferral of functions as it allows the Bank to manage the systemic risk posed by some non-UK CCPs in a way that is appropriate for the UK. The statutory instrument therefore transfers the remaining Commission functions—including the power to deploy the so-called location policy—to Her Majesty’s Treasury.

Under EMIR 2.2, ESMA can recommend to the Commission that a third-country CCP that is felt to be substantially systemically important should lose permission to offer some services to EU clearing members, unless those services are offered from inside the EU. This is referred to as the location policy, the inclusion of which in EMIR 2.2 the UK did not support because of concerns that it could lead to market fragmentation and reduce the benefits provided by the global nature of clearing. However, the powers in the European Union (Withdrawal) Act 2018 under which we introduced the SI extend only to the addressing of deficiencies arising from withdrawal. During the passage of that legislation, commitments were made that the powers would not be used to make significant policy changes, so I am not going to deviate from that.

The OTC SI transfers the powers to use the location policy to the Treasury, subject to advice from the Bank of England and appropriate procedural safeguards and transitional provisions. I assure the House that because of the very different nature of the UK’s clearing markets, it is hard to foresee circumstances in which the Bank would appropriate the use of that tool in practice. EMIR 2.2 also makes changes to internally used supervisory and co-operation mechanisms but, as the UK is no longer part of the EU, those provisions are removed by the SI.

Finally, the OTC SI updates the recognition powers set out in the temporary recognition regime, which was established by a previous SI to enable non-UK CCPs to continue their activities in the UK after exit day, while their recognition applications are assessed. This SI updates the recognition requirements in line with the new EMIR 2.2 provisions. The Treasury has worked closely with the Bank of England to prepare the instrument and has also engaged with the financial services industry, as we have done throughout. The draft legislation has been publicly available on the legislation.gov.uk website since 24 February, and the instrument was laid before Parliament on 25 March.

In summary, the OTC SI is necessary to ensure that existing EMIR legislation will continue to function effectively in the UK from the end of the transition period, following the updates made in EMIR 2.2. In particular, it will ensure that the UK has the tools necessary to manage the financial stability risks posed by some of the largest non-UK CCPs.

Let me turn my attention towards the second of tonight’s SIs, the Financial Services (Miscellaneous Amendments) (EU Exit) Regulations 2020. Although this SI makes amendments to approximately 20 pieces of legislation, the number and nature of the amendments are modest and minor. They act to preserve the effect of recent changes to EU legislation in the UK, and in doing so limit any impact on business that would otherwise arise at the end of the transition period.

Primarily, this SI fixes deficiencies in recently applicable EU legislation, which is congruous with the Treasury’s approach to previous financial services EU exit instruments and the approach required by the European Union (Withdrawal) Act 2018. It also revokes pieces of retained EU law and UK domestic law that it would not be appropriate to keep on the statute book at the end of the transition period.

This SI contains a small number of minor clarifications and corrections to previous financial services EU exit instruments. The House will be aware of the unprecedented scale of the legislative programme that the Treasury has undertaken, which has been carried out with rigorous checking procedures. However, errors are unfortunately made on occasion, and when they arise it is important that they are corrected as soon as possible. This has happened previously, and I will continue to be completely transparent when such shortcomings become apparent.

I note that this SI also includes provisions initially included in the Cross-Border Distribution of Funds, Proxy Advisors, Prospectus and Gibraltar (Amendment) (EU Exit) Regulations 2019, which were laid using the made affirmative procedure in October 2019, when at the time it was necessary to ensure that the SI was in place prior to the previous exit date of 31 October. That SI subsequently ceased to have effect, but it is important that those provisions, which include amendments to the UK’s prospectus regime to ensure it remains operational in a wholly domestic context, are in force before the end of the transition period. Those provisions have therefore been included in this IS.

I would like to say a few words on the amendments that this SI makes to a previous EU exit instrument, the Equivalence Determinations for Financial Services and Miscellaneous Provisions (Amendment etc) (EU Exit) Regulations 2019, which I shall now refer to as the equivalence SI. The equivalence SI allows the Treasury to make equivalence directions for EEA states during the transition period for specified provisions. Today’s SI adds additional equivalence regimes to the scope of the power for the Treasury to make equivalence directions for EEA states during the transition period. This is through the inclusion of provisions relating to central securities depositories, which are entities that hold financial instruments and trade repositories that collect and maintain records of derivative trades.

This SI also amends the existing drafting on the length of the direction power to tie it to the end of the transition period. This will enable Ministers to make directions during the transition period to come into force at the end of the transition period, granting equivalence to the EEA for those regimes. Finally, this SI clarifies that the Treasury can impose limitations on the application of state-level equivalence decisions in granting equivalence to the EEA—for example, in response to EU conditions placed on the UK. As with the OTC SI, the Treasury has been working closely with the financial services regulators in the drafting of this instrument and has engaged with the financial services industry.

In conclusion, the Government believe that these instruments are necessary to ensure that the UK has a coherent and functioning financial services regulatory regime at the end of this year when we leave the transition period, and I hope that the House will join me in supporting them. I commend the regulations the House.

June 21, 2020
Helen Hayes – 2020 Speech on Free School Meals

Below is the text of the speech made by Helen Hayes, the Labour MP for Dulwich and West Norwood, in the House of Commons on 16 June 2020.

I pay tribute to Marcus Rashford this afternoon. It is not easy to speak about difficult personal experiences, but by doing so in such a powerful way, he helped to force the Government to act to stop 1.3 million children in England who are eligible for free school meals going hungry over the summer holidays. I also pay tribute to my local councils—Lambeth and Southwark councils—and to the many community organisations that have been working so hard since March to address food insecurity during the pandemic. They show the commitment, care and compassion in our local communities of which I could not be more proud.

While the Government’s U-turn is welcome, we should not be having this debate today, because coronavirus or not, no child should ever go hungry in the UK. Parents do not want to have to rely on a voucher scheme. They want the dignity and freedom to buy healthy, fresh food to nourish their children. Shamefully, childhood hunger and food insecurity are a huge problem in the UK, exacerbated by coronavirus, but a reality for many families, even without the pandemic. It is hard to understand the mindset of a Prime Minister who does not appear to see this as a top priority and who has to be pushed reluctantly into minimal action.

The voucher scheme is welcome and essential, but it is not a solution to food poverty. It is not reaching the thousands of families who fall just outside the income threshold for free school meals, or those who will not claim because of the stigma. We know that many of these families are also on low incomes, with precarious work, facing high housing costs and forced to rely on a social security system that prefers punishment over support.

The Government have a choice: they can keep lurching forward with disorganisation and wrong-headedness, forced to do the right thing only by intense pressure from our communities; or they can start to engage and plan now for a coronavirus recovery that builds back better, addressing structural inequality, low pay, insecure work, the high cost and insecurity of private renting and the ability of our councils to deliver the public services that we all rely on, and they could make sure that no child in the UK ever has to go to bed hungry again.

June 21, 2020