BACKBENCH BUSINESS

Mr Lamb agreed with Mr Kerevan's argument for a permanent resolution mechanism and highlighted the need to support whistleblowers who risk their careers to expose financial mis-selling.

Mr Grady discussed his constituent, Neil Mitchell, whose business was forced into administration by RBS and highlighted the lack of willingness from RBS to engage in dispute resolution.

Mr Gethins shared a case about his constituent, Jim McGrory, who faced high exit fees and termination clauses when trying to refinance at a preferential rate.

Mr Weir talked about a similar case where his constituent’s business was put under by RBS, highlighting the imbalance of power between small businesses and banks when seeking legal action.

Supports the idea of using an existing alternative dispute resolution (ADR) regime to help solve disputes between small businesses and financial institutions. The ADR system can reduce costs involved in resolving such disputes, as it is already used in other commercial sectors.

Asked for clarification on which sectors of the financial services are incorporating alternative dispute resolution clauses. He noted a lack of ADR clauses in contracts from banks, indicating that while ADR is potentially beneficial, its application may be limited.

Mr Howell emphasised the importance of alternative dispute resolution (ADR) processes in reducing court costs and stress for individuals, highlighting Lord Justice Briggs' suggestion to remove the term 'alternative' from ADR. He called for commercial contracts to include clauses that promote ADR as a standard mechanism for resolving disputes rather than internal complaints procedures.

Mr Hanson supported the motion, stressing the need for an independent appeals mechanism for businesses facing disputes with banks. He cited Andrew Bailey's statement to the Treasury Committee that existing mechanisms were insufficient. Mr Hanson highlighted concerns over RBS's actions, especially regarding 12,000 companies pushed into its Global Restructuring Group and a case involving his constituent Clive May. He argued that there should be an effective platform for resolving commercial financial disputes.

Mr Lamb briefly acknowledged the serious allegations made by Mr Hanson regarding RBS's treatment of small businesses, referring to it as a scandal involving misuse of public money.

Supports the motion and highlights incentives for bad behaviour in banking, cost and accessibility of courts, complexity of financial products.

Emphasises the importance of small businesses to the UK economy, highlighting structural challenges SMEs face in financial disputes with larger institutions or banks. Criticises the effectiveness of ad-hoc compensation schemes.

Supports Phil Boswell's point about considering an alternative banking structure based on community banks that are embedded in their local communities, better understanding and supporting SMEs.

I entirely agree that the practice of delay and avoidance tactics by banks, especially those in public ownership, is undesirable. My constituent's case, which surpassed the six-year time limit for taking legal action due to FCA recommendations, highlights the need for a more robust compensation scheme. The ad hoc schemes set up by the FCA have been insufficiently rigorous and fair, lacking proper oversight and transparency. Experiences of many constituents show that the current mechanisms are inadequate in resolving disputes promptly and fairly.

I congratulate George Kerevan on initiating this debate and acknowledge the work done by the all-party group for fair business banking. Many constituents in my constituency have experienced mis-selling of interest rate swaps, leading to a lack of confidence in the FCA's ad hoc scheme which was bank-centric and lacked impartiality. The case of Mansel Beechey, a publican from Aberystwyth, exemplifies how internal complaints procedures fail SMEs, as they are pushed into prevarication tactics by banks, often resulting in businesses going under. We need an independent dispute resolution mechanism that ensures transparency and timely justice for small businesses.

The debate is about the consumer and the customer's right to meaningful redress when things go wrong. Anna Turley supports the motion, sharing her constituent Stephen Lilley's story of being mis-sold an interest rate hedging product by HSBC, which led to significant financial difficulties for his business. She emphasises that the bank, regulator, and ombudsman let down those who have suffered similar circumstances, urging the support of the motion for a proper authority to resolve disputes.

Supporting the motion, Norman Lamb highlights the need for an effective and timely dispute resolution mechanism. He mentions serious allegations against RBS's Global Restructuring Group of deliberately forcing companies into distress to profit from their failure using public money through the enterprise finance guarantee scheme. He also shares a story about a whistleblower who was treated poorly by RBS, risking everything to expose wrongdoing.

Responding to Norman Lamb's speech, George Kerevan provides information that RBS has told him the adjudicator in its new redress system will have 'unfettered access' to all bank records for cases brought up.

Argued that the RBS Global Restructuring Group's approach is similar to the ill-conceived FCA compensation scheme for interest rate hedging products, with over 75% of complainants being insolvent and many losing their livelihoods. Criticised RBS's apology as inadequate and highlighted the emotional impact on individuals, including potential suicides. Emphasised the need for a tribunal system to prevent such abuses from happening in the future.

Agreed with Michelle Thomson's use of 'pillage' to describe RBS's actions, highlighting the appropriateness of the term and urging the Minister to consider this language seriously.

Congratulated George Kerevan for securing the debate. Highlighted the need for an end to disputes generated by financial services companies, advocating for better performance across the sector. Raised concerns about banks tilting risk in their favour, exemplifying a case involving RBS where a constituent's money was wrongly accused of fraud and had to resort to small claims court. Emphasised the importance of fair rule application and evidence use. Also discussed the Connaught Income Fund collapse and criticised the FCA’s handling of legacy cases.

Congratulates the Member for East Lothian on securing this debate, highlighting the importance of rebuilding trust in banking and protecting small and medium-sized enterprises. Criticises ad hoc solutions as insufficient for addressing systemic issues within the banking sector, proposing a commercial financial dispute resolution platform instead.

Names a constituent, Archie Meikle of Ashwood Homes, who has been affected by RBS's Global Restructuring Group. Asks whether the only way to solve these problems is by protecting businesses from such programmes.

Emphasises the importance of a systemic solution, citing examples and highlighting economic recovery in Aberdeen as a reason for urgency. Discusses the benefits of early intervention and best practices to ensure that past mistakes are not repeated.

Addresses cultural issues within banking, citing examples of mis-selling products and unethical behavior by banks towards businesses. Proposes a duty of care for customers and strengthening support for whistleblowers.

Thanks the Member for East Lothian for securing this debate, emphasising the need to move beyond individual cases towards a permanent solution. Highlights the economic disaster and mental health impacts caused by mis-selling products.

Commemorates the proactive suggestions to improve conditions for small businesses. Criticises poor attendance in the House despite the importance of the debate.

Agrees with the importance of finding solutions beyond mourning, emphasising the link between low productivity levels in SMEs and pressure from large banks since 2007-08. He discussed peculiar arrangements between solicitors’ practices and banks which exacerbate inequality for SMEs, noting that banks do not bite the hand that feeds them due to needing the work. Criticised banks' secret terms of contracts, arguing they worsen inequality.

Discussed alternative dispute resolution clauses in commercial contracts and suggested making ADR known could increase its inclusion in risky derivatives contracts voluntarily by banks.

Agreed with John Howell's point but remained cynical about the voluntary inclusion of ADR clauses in risky contracts due to commercial risk. Acknowledged public ownership of affected banks and their impact on taxpayers.

Addressed cultural issues within banking organisations, noting that while most people working in the sector are good individuals, a top-down driven culture leads to dissatisfaction among staff.

Fully agreed with Hannah Bardell's comments on cultural issues and stated that unless banking returns to being ethical, a vital cultural change will not be achieved. Mentioned the reluctance of SMEs to complain due to an inequality of arms before reaching dispute resolution systems.

Highlighted inconsistencies in the adjudication of retail banking issues by the Financial Ombudsman Service based on personal experience while working at a bank.

Acknowledged Norman Lamb's speech, focusing on mental health effects and whistleblowing. Intends to table amendments for whistleblower protection and banking culture review in the Criminal Finance Bill. Praised Michelle Thomson’s attack on predatory banking practices and Kirsten Oswald’s retail case example.

Stressed that an ADR system alone would not solve all problems, emphasising the need for a cultural shift in how banks approach their customers and products. Highlighted RBS’s actuarial calculations over human costs.

Summarized contributions from various MPs and emphasised the importance of changing banking culture to prevent over-aggressive mis-selling of products businesses do not understand, thereby reducing need for ADR systems.

The hon. Member for Dumfries and Galloway has summarised most of the issues I would have addressed. The speaker thanks the hon. Member for East Lothian for bringing the issue to the attention of the House. He also critiques the Austrian school's inadequacy in addressing complaints and supports the efforts of cross-party engagement, particularly those from the all-party parliamentary group on fair business banking and that on alternative dispute resolution chaired by the hon. Member for Henley. He highlights RBS’s misuse of global restructuring as an example of poor corporate governance and weak regulation. The speaker notes a significant imbalance of power between small businesses and their financial services providers, emphasising the inadequacy of current dispute resolution mechanisms. He discusses the systemic nature of banking failures beyond just one bank and criticises the lack of proper regulatory response post-2008 crisis. He calls for robust mechanisms to prevent future mishaps and stresses the need for systematic arrangements to resolve disputes effectively.

The hon. Member acknowledges the importance of supporting businesses through a competitive tax regime and investment in skills, research, and infrastructure. He mentions that financial services providers should act according to FCA rules when lending to companies. The Minister highlights existing avenues for SMEs in dealing with their banks, including the Financial Ombudsman Service and FCA's redress schemes. He confirms that if the findings from the FCA’s work suggest reviewing dispute resolution mechanisms for businesses, they will be considered. Kirby addresses concerns about reforming insolvency law and mentions the Government’s review of corporate insolvency framework. He also touches on Andrew Bailey’s letter and RBS’s treatment of small business customers, stating willingness to discuss details of recent redress scheme with RBS.

The right hon. Member raises concerns about the quality of the IRHP review and mentions access to the Financial Ombudsman Service, noting that 97% of small businesses have access but believes this needs improvement. He discusses RBS’s internal investigation into the administration of its Enterprise Finance Guarantee scheme.

The hon. Member inquires whether it would be appropriate to treat small businesses as consumers when addressing financial disputes, though he corrects that his statement was not about treating them as consumers but rather considering incentives to discourage misconduct.

Asked the Minister about whistleblowers reporting issues within RBS and GRG.

Mentioned a constituent affected by RBS's GRG unit and highlighted Government support for small businesses through tax and regulation.

Asked about the involvement of the UK Government in the activities of RBS’s GRG unit, highlighting that HMG holds shares in the bank.

Inquired about Connaught investors and whether lessons will be learned from their case by the FCA.

Discussed the concept of duty of care for businesses interacting with financial services providers, emphasising the importance of a culture that supports fair outcomes.

Thanked Members who participated in the debate and mentioned the need for an inquiry on commercial financial dispute resolution. Called for evidence from the Minister at this upcoming inquiry.

Acknowledges the success of broadband programme but points out issues with accessibility for surrounding areas, citing examples from Horsham.

Emphasises the importance of broadband access in homes, businesses, schools, and health services. Acknowledges the announcement that every area will get 10 megabits but expresses scepticism from those with limited current connectivity.

Invites Ed Vaizey to visit Wycombe to address broadband issues, particularly in Fawley and Turville where 4G access is lacking.

Accepts invitation from Steven Baker to discuss broadband success and Brexit perils in his constituency.

Asks Matt Warman about innovative firms rolling out wireless technology to bridge gaps left by the current programme. Highlights data collection via apps for real-time information on poor signal quality.

Highlights Which? findings that Scots have access to 4G signals only 54% of the time, indicating a significant gap in service availability.

Mentions companies like STL Communications providing broadband solutions across regions and suggests involving various companies in the provision of a 100% solution.

Proposes insisting on broadband provision for new developments over 20 houses, advocating for superfast connections to add value and stimulate property prices.

Welcomes the opportunity to discuss universal broadband provision and criticises the Conservative party for initially rejecting this policy. Highlights the importance of broadband access in modern society, both for businesses and individuals. Emphasises that without a universal service obligation, there will be regional imbalances, especially affecting rural areas and regions outside south-east England.

Supports the points made by Ian Lucas about universality of broadband provision. Notes that broadband access is crucial for businesses in constituencies with large tourism sectors, such as Llwyn Helyg country house.

Agrees with Ian Lucas's points on universality of broadband provision. Provides an example from his constituency where a business has suffered due to poor broadband provision.

Supports the case for universal broadband provision, particularly in rural areas and communities with large tourism sectors such as her Neath constituency. Calls for Government underwriting of additional funds required to complete the Superfast Cymru project.

Defends the Labour-run Welsh Government's role in delivering broadband services through the Superfast Cymru programme. Criticises Ian Lucas for making partisan remarks and undermining the efforts of the Welsh Government.

He discussed the challenges of providing broadband coverage in Wrexham and advocated for a communications council involving businesses and regulators to devise an effective approach to a universal obligation. Mr Lucas emphasised that improving broadband provision is not only necessary but also presents opportunities for workforce training and skills development.

Mr Vaizey responded to the previous speaker, criticising Labour's past promises on broadband speeds. He highlighted the success of the Conservative government's rural superfast broadband programme and criticised Lord Adonis for inaccurate claims about UK mobile broadband compared to Peru. Mr Vaizey urged the Minister to address such misrepresentations and suggested that Ofcom should provide comprehensive yearly digital reports.

Ms Sandbach corrected a statement from Wrexham regarding broadband coverage, noting her constituency has significantly less coverage than Wrexham's 95% superfast rate.

Called for a universal service obligation of 100% coverage, arguing that the current focus on achieving only 95% leaves behind rural and peripheral areas. Highlighted issues faced by residents in his constituency with poor mobile signals and lack of superfast broadband, affecting their access to smart metres and other services. Called for detailed plans from the Government on how the universal service obligation will be implemented and offered his constituency as a pilot scheme.

Responded to Albert Owen, clarifying that Labour's promise was for 100% coverage of 2 megabits but did not propose a universal service obligation. Defended the Government's approach and its consultation process.

The Member emphasises the importance of broadband access in rural areas, highlighting that over 30% of British farmers do not have fibre-optic connections and many experience slow download speeds. He notes the Digital Economy Bill's potential to improve broadband infrastructure but calls for more ambitious targets than the current universal service obligation which aims for 10 megabits per second by 2020. Clifton-Brown supports the Chancellor’s autumn statement provision of £1 billion investment through a digital infrastructure fund and underscores its economic benefits, such as adding around £17 billion to the UK economy by 2024 and reducing carbon emissions annually. He also calls for improvements in mobile phone signals across rural areas.

Welcomed the moves by the UK Government to provide improved digital infrastructure but argued that it does not go far enough. Highlighted Scotland's ambition for a digitally skilled workforce, which is hindered by the current 10 Mbps universal service obligation. Emphasised the need for a 100% superfast broadband commitment as opposed to the current plans. Drew attention to the Deloitte report suggesting that world-leading digitalisation could boost GDP and generate jobs in Scotland. Discussed the shortage of specialist digital skills, particularly among women and young people. Raised concerns about mobile connectivity issues in rural areas, referencing poor 4G coverage statistics from Which?. Called for greater ambition on 5G spectrum auctions to prioritise rural areas.

Welcomed the debate and highlighted the connectivity issues in her constituency. Noted that some postcodes have poor broadband speeds, indicating a need for action. Called for clarity on what legal right to broadband means under the universal service obligation. Highlighted the importance of mobile coverage for rural communities, mentioning specific challenges such as banking online and accessing health services via telemedicine. Discussed the impact of connectivity issues on farmers and businesses. Suggested initiatives like locking enterprise zones into hard-to-reach villages and using churches' offers to host masts.

People consider broadband to be the fourth utility, essential for entertainment, education and trade. The current USO of 10 megabits per second is not ambitious enough for future needs, as Scotland proposes 20 mbps and Europe aims for 30 mbps. We need a super-broadband highway that can carry superfast broadband to every user and be easily accessible for upgrades.

Agrees with the proposal of more ambitious broadband targets, questioning whether the Government's current approach is sufficient to meet future demands. Highlights the importance of digital policy and calls for a higher profile for the Minister for Digital within Government.

Suggests that the Minister for Digital should work closely with the Department for Business, Energy and Industrial Strategy to ensure a more cohesive approach to digital policy.

Mr. Kerr expresses concern that the Government's approach to broadband infrastructure is pragmatic rather than visionary, focusing on cost-effectiveness rather than long-term critical infrastructure needs. He highlights BT's dominant role in the USO and raises doubts about whether the USO can be upgraded effectively. Mr. Kerr also points out issues with the current design of the USO, such as potential additional costs for users when upgrading from 10 megabits to 30 megabits. He advocates for a more ambitious approach, citing the Broadband World Forum announcement and the broadband investment fund's funding increase. He further criticises the lack of support for rural areas in current schemes and suggests turning the USO into a 'universal service opportunity' with vouchers to empower devolved Administrations.

Everyone must share in the benefits of our modern digital society. The universal service obligation should extend to road, rail and waterways; address-level data publication is necessary. Rural areas have been left behind with poor investment and consequences for digital exclusion. Digital skills need improvement as highlighted by Drew Hendry. The broadband investment fund will only reach 7% full fibre coverage by 2020, which is not ambitious enough compared to other countries like Latvia and Lithuania in 2012. There should be a coalition of support for more ambitious USO through secondary legislation when outdated. Community providers need to be consulted as part of the USO process. Small businesses disproportionately lack access to acceptable download speeds; they must have rights to request a USO themselves.

Congratulations to Matt Warman for securing this debate on broadband and mobile coverage. The UK is committed to ensuring nobody is digitally excluded, and that includes economic imperatives such as fast broadband in rural areas. 95% of premises across the UK have access to superfast broadband due to £1.7 billion of public investment creating over 4 million new connections; currently, 90% of UK premises can access these speeds. Commercial roll-out is part but not all of the solution - government intervention is necessary for a mixed economy approach.

Asked the Minister for figures on broadband take-up and suggested making them available in the Library.

Discussed take-up figures, connectivity importance over technology, future-proofing approach, universal service obligation, fibre connections, procurement issues with Scottish Government, £1 billion investment for broadband and 5G.

Pointed out that the 95% target might not be met in rural areas due to topography issues.

Argued against the UK Government's broadband target, preferring Scotland's higher target of 30 megabits by 2021.

Asked about alternative provision for rural areas that may never benefit from fibre connections.

Summarised the debate, highlighting consensus on ambition in delivering broadband access and diversity of solutions.