Peter Aldous takes the opportunity of the launch of the National Piers Society’s touring exhibition of seaside pier posters to raise concerns that the international promotion of tourism is too London-centric, and asks what is being done to promote the unique offer of coastal Britain to overseas visitors.
Peter Aldous (Waveney) (Con)
T4. Last Saturday, the National Piers Society launched its national touring exhibition of seaside pier posters at the Claremont pier in Lowestoft. There is a concern that the international promotion of tourism is too London-centric, and I would be grateful if the Minister could outline the work that is being done to promote the unique offer of coastal Britain to overseas visitors, as illustrated in those posters. (904682)
The Minister of State, Department for Culture, Media and Sport (Julia Lopez)
My hon. Friend is very fortunate to represent one of our beautiful coastal communities, and he is right about the importance of promoting non-London destinations. There is a tremendous amount of fantastic things to visit out there beyond our capital. To give a couple of examples, we have a GREAT-funded campaign to see things differently, which includes the Pembrokeshire coast national park, Thorpe Bay beach and Brighton pier. Earlier this year, VisitBritain welcomed more than 120 international trade buyers in the travel industry for a series of educational visits across Britain that focused on coastal communities. I hope that they will take the wonderful things that they saw back to the buyers in their own countries.
Peter Aldous calls on the Government to work with the General Dental Council to reduce the long waiting time that overseas dentists are having to wait to take the overseas registration examination; there are currently more than 3,000 applicants and only 150 exams taking place each month.
Peter Aldous (Waveney) (Con)
Notwithstanding the work that the Government have done, the feedback that I am receiving from Suffolk-based NHS dentists is that there is still a very long waiting list for overseas dentists waiting to take the overseas registration examination, with more than 3,000 applicants and only 150 exams taking place each month. I urge my hon. Friend to leave no stone unturned in working with the General Dental Council to eliminate the waiting list as quickly as possible.
The Parliamentary Under-Secretary of State for Health and Social Care (Neil O’Brien)
We are leaving no stone unturned. Last month, we passed legislation enabling the GDC to increase the capacity of the ORE. We have also made it easier for overseas dentists to start working in the NHS: as of 1 April, no dentist will need to pay an application fee. We also want to radically reduce the time that dentists spend in performers list validation by experience, and we will set out further steps in our dentistry plan.
Peter Aldous welcomes the Bill as a step in the right direction to reforming business rates, but calls for this to be acknowledged as only the start of the process and raises concerns about any additional administrative burden on businesses.
Peter Aldous (Waveney) (Con)
The Bill is welcome as it was a 2019 Conservative manifesto commitment to carry out a fundamental review of business rates, the final report for which was published alongside the 2021 autumn Budget.
I support the Bill generally, but I have two concerns. First, the Bill should be seen not as the endgame but as the start of the process to radically reform business rates. The ultimate objective should be to reduce the uniform business rate multiplier to something in the order of 30p in the pound; to carry out annual revaluations; to abolish the multitude of complicated reliefs; and to digitalise the Valuation Office Agency. If we do so, business rates will be reduced to an affordable level, the system will be put on a long-term and more easily understood footing and we shall be able to get on with so-called levelling up—removing barriers that impede regional growth. That will enable businesses to know where they stand and to make long-term investment decisions. The message I continually get from the Suffolk Chamber of Commerce, which carries out quarterly economic surveys, is that the No. 1 concern for businesses in Suffolk is always business rates.
My second worry is that the Bill will increase rather than ease the bureaucratic and administrative burden on businesses. I urge the Government to introduce amendments to prevent that. I shall set out my concerns in more detail later.
Before I came to this place, I was a chartered surveyor; I did not specialise in business rates, but I carried out appeals from time to time. Business rates are a tax with certain inherent advantages for the Treasury: they yield approximately £25 billion per annum, they are relatively easy to collect and they are difficult to avoid. However, if the system is not administered properly, they can have a significant negative impact on businesses generally, on specific sectors—we have heard about the challenges facing hospitality and retail—and on local economies.
Business rates are in effect a tax on existence rather than on profitability, so it is important that they be kept as low as possible. High business rates not only discourage occupation, but disincentivise investment in innovation, improvement and expansion—and if you will forgive a quick commercial interlude while I am on that subject, Madam Deputy Speaker, I must congratulate PCE Automation of Beccles, which has just received the King’s award for enterprise in recognition of excellence in innovation.
At a time of high inflation, high utility costs and stubbornly high rents, business rates are a fixed cost that occupiers cannot escape. The Chancellor made some significant and welcome announcements in his autumn statement, including the revaluation that is now coming into effect, the reform of the transitional relief scheme and the freezing of the uniform business rates multiplier. The Bill provides the necessary legislative framework for some of those changes and for others that arise from the Government’s review, as well as making some minor legislative adjustments and correcting some anomalies. I shall not go through the Bill’s provisions in detail at this stage, but I repeat that I applaud the Chancellor for the undertakings that he made in November, which are much needed in these challenging times. As I say, however, the Bill must be seen as the start, not the conclusion, of the process of radical reform.
It is also necessary to guard against some unintended consequences. As drafted, the Bill will add to the regulatory burden on businesses at a time when we should be seeking to ease and reduce it. The new duty to notify set out in clause 13, which the VOA has justified as necessary to facilitate the move to a review every three years, will result in a mountain of paperwork for ratepayers. Businesses will now have to notify the VOA of any changes to their properties within 60 days, or find themselves facing punitive fines or even imprisonment. It is not right for us to expect businesses which are already facing an extraordinarily challenging regulatory environment to put up with that.
This obligation was formerly the VOA’s, but has now been transferred to the ratepayer. The VOA has no corresponding obligation, and is able to respond to requests for information at its leisure. Ideally, the duty to notify should be removed from the Bill in its entirety, but if the Government wish to impose this new duty, they must do so with the principle of reciprocation in mind. The VOA must have a corresponding duty to respond within 60 days, giving the ratepayers rebates on their business rates bills equivalent to the penalties imposed on them if there is a failure to respond within that time.
My second concern relates to clause 14, which proposes changes in the circumstances in which rateable values may be altered outside the regular cycle of revaluations. I am concerned about the consequences of this clause, and I believe that it should be removed. Let me explain the background. A “material change in circumstances” allows ratepayers recourse to pursue relief on their business rates bills when factors outside their control have an impact on their ability to do business and to operate. To my mind, that is logical natural justice, but the VOA seems to dislike the paperwork associated with these claims, as is evidenced by its mass rejection of 400,000 covid-related appeals. It appears that to prevent the repetition of such circumstances, it is now proposed to exempt any Government legislation as qualifying grounds for a challenge. In practice, this means that the Government would be able to act with impunity and enact policies that could hamper businesses without allowing them the legal recourse to challenge them. That is fundamentally unjust.
As I have mentioned, the move to three-yearly revaluations should not be the endgame, but should be a stepping stone towards annual revaluations. The advantage of that approach is that there would no longer be a need for the current complex system of reliefs; businesses would in effect be paying a tax that moved with the market, and that would lead to greater long-term certainty which would then encourage private sector investment. At first glance, annual revaluations might seem too complicated and challenging, but, as we have heard, such a system operates in the Netherlands, and there is no reason why we should not have it here.
It is regrettable that, for many businesses, discussions and negotiations with the VOA are conducted in accordance with the philosophy of “one rule for us and another for them”. The proposed duty to notify embeds this sentiment still further. It must be removed, and the system must become more transparent. The VOA’s processes are notoriously opaque, and leave many ratepayers scratching their heads when they receive their revaluation figures. As it stands, a business’s only recourse when it comes to understanding its rateable value is to go through the VOA’s complex “check, challenge and appeal” process, which many feel is deliberately designed to discourage people from—dare I say it—peering behind the curtain.
The Bill, as currently drafted, does provide the VOA with the power to give more information to ratepayers, but only at its discretion, if it considers it “reasonable to do so”. This provision is set out in clause 10, but it is vague and undefined, and some might say that it provides the VOA with the ability to reveal information to no one while appearing to be forthcoming. If clause 13 requires businesses to provide reams of information to the VOA, it is only right that it should reciprocate. Ratepayers must be given the option to understand the process that defines the tax that they will be paying for the next three years, and to reasonably expect an answer within 60 days of submitting their request, thereby mirroring the duty to notify.
My final concern relates to another unintended consequence of the duty to notify, as currently drafted in the Bill, which is the wave of predatory, unqualified and unscrupulous rating advisers that I fear it may spawn. The ramifications of financial advice, whether good or bad, can be huge for individuals and businesses. Most financial advisers in most settings require a licence to give advice from a sanctioning body. One therefore has to ask why this does not also apply to rating advisers.
Helen Morgan
The hon. Gentleman is making an excellent speech. On his point about advice, financial controllers are inundated daily by people cold calling them and offering to challenge their rates bills. They have no idea who they are, yet they take a cut of any saving that might be made. This indicates two things to me: first, that the system is not fit for purpose; and secondly, that the rating values are inadequate in the first place. Does he agree with me on those points?
Peter Aldous
I agree with the hon. Lady. This is a specialist area of valuation. When I was practising as a chartered surveyor, I quite often got called in because the client, the business owner, had gone down the line of paying money upfront to someone who had sent them a circular—they may have paid them £1,000 or £2,000—and that person had suddenly disappeared. I often got called in to try to sort out that type of situation.
At the current time, with the publication of the new rating list, thousands of businesses are being flooded by solicitations from charlatan rating advisers who are taking advantage of the confusion created by the complicated rating system. There is a significant risk that many businesses, particularly SMEs, will have neither the understanding nor the capacity to meet the duty to notify. They will increasingly fall prey to such bad advice, and this could have a devastating impact. The Government should therefore consider some sort of licensing to protect businesses from the scourge of cowboys looking to take advantage of the duty to notify.
Madam Deputy Speaker, you will be pleased to hear that I have now reached my conclusion. Taking into account that we have been awaiting legislation on the reform of business rates for the whole of the 13 years that I have been an MP, this legislation is indeed welcome. For too long we have been carrying out reviews and searching for holy grail solutions that involve the abolition of business rates, but my personal view is that those do not exist. As I have said, the Chancellor should be commended for the positive announcements he made in his autumn statement, some of which are included in this Bill. The Bill should be viewed as a step in the right direction. However, as currently drafted, it contains a number of false steps that are likely to have unintended consequences. It is also vital to recognise that this is not the end of the reform of business rates, but it is the end of the beginning. I am happy to support the Bill this afternoon, but it has defects that need to be addressed as it progresses through this and the other place, and I hope that the Government will take on board the concerns that I and my colleagues across the Chamber have highlighted.
Peter Aldous calls on the Government to develop a comprehensive fiscal strategy for the autumn statement, including tax incentives, the reform of capital allowances and other measures to maximise private investment in renewables which is vital to bringing new jobs to coastal communities such as Lowestoft.
Peter Aldous (Waveney) (Con)
T8. Maximising investment in renewables is vital to bringing new jobs to coastal communities such as Lowestoft. I would be grateful if my right hon. Friend confirmed that he is working closely with the Treasury to prepare a comprehensive fiscal strategy that will form part of the autumn statement, and that it will include tax incentives, the reform of capital allowances and measures to unlock private investment in ports. (904562)
The Minister for Energy Security and Net Zero (Graham Stuart)
My hon. Friend will be pleased to hear that we always work closely with our Treasury colleagues. We launched the floating offshore wind manufacturing investment scheme—FLOWMIS—on 30 March, which is worth up to £160 million and will support investment in port infrastructure precisely to unlock floating offshore wind investment and deployment. The spring Budget set out the Government’s plans to launch the refocused investment zones programme to catalyse 12 high-potential growth clusters across the UK.
Peter Aldous welcomes the lifelong loan entitlement and Government’s acknowledgement of the need for maintenance support for adult learners, but calls for a clear pathway for those who do not yet have level 3 qualifications, such as A-levels, to participate in this initiative.
Lifelong Learning
Peter Aldous (Waveney) (Con)
6. What steps her Department is taking to promote lifelong learning. (904500)
The Secretary of State for Education (Gillian Keegan)
The lifelong loan entitlement will ensure everyone has access to opportunities to upskill and reskill to progress in their careers. We have led a huge raft of reforms to the skills system since 2016 to deliver on this ambition, building on the reviews led by Professor Alison Wolf, Lord Sainsbury, Sir Philip Augar and others. Over this time, we have worked with over 5,000 employers to deliver apprenticeships, backed by the landmark £2.7 billion apprenticeship levy. The £3.8 billion we are investing over this Parliament will support more people to benefit from apprenticeships, skills bootcamps, T-levels, free courses for jobs and new returnerships, and will deliver our flagship institutes of technology.
Peter Aldous
I am most grateful to my right hon. Friend for that comprehensive reply. It is welcome that the Government, in their response to the lifelong loan entitlement consultation, have acknowledged the need for maintenance support. However, so that lifelong loans are available to the many and not to the few, can my right hon. Friend ensure that there is a clear pathway for those who do not yet have level 3 qualifications, such as A-levels, to participate in this vital initiative and ensure that it is the game changer that will unleash the skills revolution?
Gillian Keegan
I thank my hon. Friend, and I agree with him that there should be a clear pathway. That is why level 3 courses are fully funded for a range of individuals through funding streams such as free courses for jobs, the adult education budget and advanced learner loans. The adult education budget allows eligible adult learners aged 19 to 23 undertaking their first full level 3 course to be fully funded, and free courses for jobs gives eligible adults the chance to access high-value level 3 courses—423 of them—for free. The Government aim to support learners building up or stacking up LLE-funded modules on pathways to full qualifications across their working lives.
Peter Aldous welcomes the Government’s plans for powering up Britain and the focus on energy security, cost and decarbonisation, and calls on the Government to also concentrate on job creation by developing a skills strategy and an infrastructure investment plan which includes ports such as Lowestoft.
Peter Aldous (Waveney) (Con)
I welcome my right hon. Friend’s statement. This strategy rightly focuses on security of energy, its cost and decarbonisation. I would be grateful if he could confirm that the Government will also concentrate on the enormous opportunity to create jobs, and that they will come forward quickly with both a skills strategy and a plan for investment in infrastructure, which should include both the grid and ports such as Lowestoft?
The Minister for Energy Security and Net Zero (Graham Stuart)
I thank my hon. Friend for his constructive contribution, as ever. I co-chair the green jobs delivery group. We are working closely with industry to ensure that we get the signals from them across multiple trades, and engaging with the Department for Education to ensure that it can use those inputs to construct various courses to support that. We are absolutely focused. The reason we have a Minister for nuclear and networks is that we recognise that we have to get that infrastructure right. If we get it right—look at the success we have already had and at our investability going forward—it will be a tremendous transition, generating lower-cost energy and making us one of the most competitive economies in the world.
Peter Aldous hosted a discussion regarding tackling the rise of ‘NHS dental deserts’ in the UK, and to consider ways to reform NHS dentistry.
Peter Aldous has welcomed the announcement from the Government that young people across Waveney are to benefit from the rebuilding and renovation of youth services in some of the country’s most disadvantaged areas, as beneficiaries of the first major tranche from the Government’s Youth Investment Fund have been announced.
The Seagull Theatre in Lowestoft is set to be transformed by £518,000 in funding as part of a £90 million investment into 43 youth centres from the Government. This comes from the £300 million of total funding for the Youth Investment Fund.
Small community youth spaces, youth centres large and small, and activity centres will all benefit from this fund.
The transformative fund launched in 2022 by the Government will pave the way for up to 300 youth facilities to be built or refurbished over the next three years in areas where need is high and existing youth provision is low.
One million extra hours of youth services will be provided in anti-social behaviour hotspots across the country as part of the Government’s Anti-Social Behaviour Action Plan through an £11 million investment.
This fund also constitutes part of the Government’s plan to tackle anti-social behaviour and help young people become active members of their local community. The Youth Investment Fund will increase the number of young people accessing regular, positive activities by 45,000 per year, support their wellbeing and give them opportunities to develop vital skills for life.
The Government has also approved £16.9 million of funding to expand access to uniformed youth groups, aiming to create 20,000 new places for young people aged between 10-18 across the country. This funding will also be focused in areas where young people are most at risk of being drawn into anti-social behaviour.
Commenting, Peter Aldous said:
“I’m thrilled to be supporting the Seagull Theatre to help young people across Lowestoft. This investment will allow the Seagull Theatre to offer more activities and opportunities for young people here in Lowestoft.
“I am confident this fund will enormously benefit the mental and physical wellbeing of our young people.”
Commenting, Culture Secretary Lucy Frazer, said:
“I want every young person to have the opportunity to access the kinds of life-changing activities which expand their horizons and allow them to develop vital life skills.
“The National Youth Guarantee will provide these opportunities and support young people with access to regular club activities, adventures away from home and volunteering opportunities.
“We are supporting this today with an investment to create or renovate spaces for youth clubs and activities to support opportunities for thousands of young people across the country who would otherwise miss out.”
Peter Aldous welcomes the Chancellor’s policies to reduce inflation, cut Government debt and initiatives to help people back into work and £4.3 million for the Lowestoft Seafront Parade, but calls for more to be done to support people and businesses impacted by Covid and Putin’s invasion of Ukraine, to help businesses thrive and to support levelling-up in the east of England.
Peter Aldous (Waveney) (Con)
It is a pleasure to follow the hon. Member for Bradford South (Judith Cummins). My right hon. Friend the Chancellor was bequeathed a difficult immediate inheritance last October, and in his autumn statement delivered on 17 November he took the first steps towards putting the nation’s finances back on a secure footing, laying the foundations for sustainable long-term economic growth. He is to be commended for what he has done in the past four months with policies that will significantly reduce inflation and cut Government spending on debt interest. His initiatives announced today on childcare, the abolition of the lifetime allowance, universal credit reform and supporting the disabled into work are to be welcomed, as are his announcements on investment allowances and tax breaks. However, in the aftermath of covid, there are ingredients to economic growth that are missing and it is important that this Budget is not the endgame but instead the first instalment of a plan for growth, with parts 2 and 3 being delivered in the autumn and this time next year.
I shall highlight three themes that I believe it is important to keep firmly in mind as we hopefully move on from the seismic shock that covid delivered and the devastating and heartbreaking ongoing impact of Putin’s invasion of Ukraine. First, it is important to continue to support—albeit hopefully on a reducing scale—those people and businesses who have been most impacted by that cruel double whammy. My right hon. Friend the Chancellor is right to extend the energy price guarantee scheme for three months and to introduce the energy bills discount scheme for businesses. He is also right to support local councils with their leisure centre costs, and I welcome the support for the charitable and the third sectors.
My right hon. Friend needs to keep the situation under review, however, and I suggest that he needs to pay particular regard to the following groups. The first is the disabled, and I am thinking particularly of those with neurological conditions such as Parkinson’s, multiple sclerosis and motor neurone disease, who have been seriously impacted by the dramatic increases in energy costs. We must not forget the ongoing challenges that they face. In the longer term, it may well be appropriate to introduce a social tariff to support such vulnerable groups, and I would urge the Government to look closely at how that might work. I am also conscious of the needs of businesses that face particular challenges. I have in mind such sectors as metal finishing, which use large amounts of electricity. They are losing work overseas and are not as yet included in the Government’s support for energy-intensive industries. I urge the Chancellor to keep that under review.
Secondly, it is important to put in place measures that enable businesses to thrive. The tax breaks and offsetting arrangements that my right hon. Friend has announced today are welcome, but they are only a start. In the autumn statement, he announced major reforms to business rates, but this work needs to be continued. In the short term, the Non-Domestic Rating (Lists) Bill must be introduced as quickly as possible, and in the longer term, work should continue so that business rates return to being a much smaller component part of a business’s operating costs.
The energy sector is a vital part of the UK economy. From a local perspective in East Anglia, there are significant opportunities for generating prosperity and jobs, ensuring our energy security and driving forward on the road to net zero. There is enormous potential in offshore wind, nuclear at Sizewell and the oil and gas sector, through the North sea transition deal, which also paves the way for hydrogen and carbon capture and storage, on which we did get some good news earlier.
If we are to realise the potential of this once-in-a-lifetime opportunity, it is vital that we reform our fiscal and regulatory regime, so that investment does not go overseas, whether to the US, Europe or beyond. The Chancellor has made a start in meeting that challenge and I look forward to the Government’s clean energy reset, which must enable the UK to retain its position as a global leader in the energy sector.
To achieve long-term economic growth and to enable people to realise their full potential, we need a skills revolution. There remains a great deal of work to do on that. It is right that the Chancellor is looking closely at it and has asked Sir Michael Barber to carry out a full review, but in the short term further education colleges, such as East Coast College in Lowestoft, are doing their great work with one arm behind their back. In the immediate future, there is an urgent need for more revenue funding to get through an incredibly challenging period. I highlight the need in the longer term to reform the apprenticeship levy.
Thirdly, let me turn to levelling up. Along with the hon. Member for Cambridge (Daniel Zeichner), I co-chair the all-party group on the east of England. In December, along with the Local Government Association, we published the “Levelling up the East of England” report, which concludes that, on five of the levelling-up missions, there was very low confidence of their being achieved. One of those missions is infrastructure, so the lack of Government support for the Ely and Haughley junction rail improvements, from which the whole UK would benefit, is very disappointing. I urge the Government to continue to work with those in the region promoting this project.
On a positive note, I welcome the announcement of funding for the Lowestoft seafront jubilee parade project, which is an important part of the regeneration work taking place in Lowestoft and will help to revitalise the town, making it a compelling place to live, work and visit. However, I cannot hide my disappointment that none of the 12 proposed investment zones is in the east of England. In Lowestoft, we have a successful enterprise zone that is in need of refreshing. We had a false start last September, when Suffolk County Council and East Suffolk Council put forward exciting proposals for investment zones. It now appears that nowhere in the east of England will have an opportunity to even be on the starting grid. In that context, the mantra of “Enterprise, employment and everywhere” does ring slightly hollow.
In conclusion, this Budget is not the endgame. There is a lot of unfinished business. Last November, the Chancellor delivered his prologue. Today, he has provided act one of his strategy for growth. Acts two and three come in the autumn and next spring. I have highlighted the work that I believe remains to be done and, in the coming months, I look forward to working with him and his colleagues in the Treasury to meet those challenges.
Peter Aldous, who is chair of the All-Party Parliamentary Group on Further Education and Lifelong Learning, has organised a letter from backbench MPs to urge the Chancellor of the Exchequer to invest £400 million of emergency funding into colleges so they can continue to offer a wide range of courses.
For more on this visit Association of Colleges.