It is a pleasure to follow the hon. Member for Cheltenham (Alex Chalk), and I echo the spirit of consensus in which he began his contribution. I wish to speak exclusively to the extension of terror reinsurance in clause 19 in chapter 4 of the Bill. This crucial clause might appear under the miscellaneous provisions, but it offers a significant opportunity to protect businesses and people from future attacks, as well as helping those who have already experienced an attack.
The Home Secretary is no longer in the Chamber, but I would like to thank him for his kind words about my own work over the past 12 months. I speak as the representative of a constituency and community that was attacked last year in the attack on London Bridge and Borough market on 3 June. I do not wish to dwell on the barbaric and savage motives of those attackers, but clause 19 links directly to the statements from the Prime Minister and other Ministers at the time about not letting the terrorists win and about how we can combat their motives and their potential to change our way of living and working.
I would like to extend my thanks to Bishop Christopher, the Bishop of Southwark, who sits in the other place here, to the dean of Southwark cathedral, Andrew Nunn, and to their whole team for their efforts over the past year and in particular for hosting such a moving commemorative service last week. It focused on the people who had been directly affected, including the loved ones of the eight people murdered last June and those who were injured. It also provided a sense of purpose for now and the future by planting a new tree of life, whose growth will be fuelled by the compost
from the flowers laid by well-wishers on London Bridge last year. That symbol of ongoing life and vibrancy in the area is genuinely well conceived and was delivered very sensitively last week. I would also like to extend my thanks to the Prime Minister, the Leader of the Opposition, the Home Secretary, the shadow Home Secretary and the Mayor of London, Sadiq Khan, for attending last week’s service. I should also like to thank Southwark Council’s leader, Peter John, and its chief executive, Eleanor Kelly, for providing space on the bridge for a minute’s silence and for more flower-laying last week.
In the service, the sentiments of the local community came through very strongly. There was a sense that we must continue living our lives, but also that something had dramatically changed. A community project was run after the attacks for people to provide their own testimony and personal experience, and the words of one local resident were echoed by the Home Secretary last week. That person said that
“the terror attack changed this neighbourhood forever but not in the way the terrorists had planned. This community is going to carry on being diverse, inclusive and welcoming.”
That sentiment was echoed when the cathedral was reopened by the Archbishop of Canterbury after the attack. He stated that the terrorists had unwittingly created a “renewed sense of community”, and that is very much something that I have felt and seen in the past 12 months.
My community stood tall last year. The immediate response was incredible. The police and the NHS deserve our thanks and praise for their incredible efforts, as do the extraordinary individual people who stepped in to prevent others from being attacked and to confront the terrorists directly, putting their own safety at risk. Taxi drivers provided free transport out of the area to those who were worried. Local people opened their doors to complete strangers to allow them to charge their phones or to give them refuge, and hotels and local businesses offered overnight shelter. In the ensuing days, the public response was also incredible. Public donations of almost £50,000 were received, and support of a similar level was received from businesses. Practical support was given by Barclays on Borough High Street, which provided office space to people who could not access their own premises. Even the British Transport police opened up their counselling service to those who had been traumatised by what they had seen.
In the weeks after the reopening, the solidarity within the local community was also incredible. Businesses such as News UK and Merger Market provided vouchers to staff worth tens of thousands of pounds to use at Borough market. Southwark Council provided rates relief of more than £100,000, and Sadiq Khan freed up £300,000 from City Hall to help the local community. The funding was administered by United Saint Saviour’s, a brilliant local charity with a long history of helping the local community.
Those responses were much-needed. The attackers could not have known what a huge outpouring of solidarity they would trigger. The attack might have lasted for no longer than eight minutes, thanks to the extraordinary efforts and heroism of the police, but the cordon and the investigation closed the area for 10 days, affecting 150 local businesses. Many people will be familiar with Borough market, but it is not just a place that provides bits and bobs and personal groceries.
The market has been there for 1,000 years, and tonnes of produce come into the market daily. It supplies restaurants and hotels across the capital and far beyond, and tonnes of produce were lost during the closure after the attack. Contracts to supply other restaurants were lost. Bookings at restaurants were lost. The London Bridge Experience was also directly affected and lost bookings.
The total bill for those 150 businesses is estimated to be more than £2 million. I shall give the House a couple of examples. Cannon and Cannon, a wholesaler of British charcuterie, lost about £11,000, but it was able to access compensation. Turnips, the fruit and veg distributor, lost nearly £100,000 as a direct result of the attack and the closure. Its insurer is Aviva, and Aviva has not paid out despite repeated requests to reconsider. It stands out in this regard, sadly, because it is the only insurer that has not responded with flexibility. It is the only insurer to have badly let down the local community, and I hope that its shareholders are aware of its terrible response. It is an insult to British values in the exceptional circumstances following the attack. I should add that many other insurers, including AXA, RSA and Zurich, worked flexibly to provide help, and I am grateful for their advice and support.
I should also like to thank the British Insurance Brokers Association and the Association of British Insurers for all their help over the past 12 months. I did not know about this particular area before. They all accept that clause 19 is needed, and they have worked together to get the Government to this point. Many of those organisations had already raised concerns, and I believe that the Treasury was warned about two and a half years ago. Sadly, the warnings were not heeded. The insurance challenge was recognised, as is clear from the briefings for this debate and the Home Office Bill briefing. The Government-backed pool reinsurance system set up in the 1990s covers only physical damage and not business interruption resulting from investigations into terror attacks.
I welcome the fact that the clause will close that loophole, but the Government are planning only for future incidents, despite the fact that the explanatory notes to the Bill make specific reference to Borough market and the difference that this measure could have made to those affected in my constituency last year. The Home Office has stated that this clause will not be used to help those who were so badly affected last June, and that is a bitter pill to swallow. I find it difficult to understand.
I hope that the Government will reconsider the matter and allow retrospective coverage for all of 2017, and I do so for four key reasons. First, my constituency needs it. London Bridge and Borough market need it. If it had not been for public donations, firms and jobs would have been at risk, and Treasury revenue was at risk. The owners of one microbusiness even had their home mortgage covered as a result of public donations. That situation did not need to happen.
Secondly, despite the public response, the Government were not there last year, and I find that shocking. The Prime Minister visited and showed the Australian Prime Minister around, a Business Minister came and met employers directly, and the Economic Secretary to the Treasury’s predecessor held a meeting here for some of the affected businesses. However, not a penny of central
Government support came to help my local community, and clause 19 represents a chance to rectify that absence from 2017.
Thirdly, the fact that the Government were warned of the need to close the loophole, but failed to do so, is justification enough for retrofitting this scheme now with this clause. My local firms and employers were unacceptably exposed to that loophole.
Finally, Pool Re, the Government scheme, has the funds. There would be no cost to the Treasury, to insurers or to taxpayers for retrofitting coverage for last year. It is simply wilful negligence to deny help to an area so badly hit when the finances are there to allow support.
I close with a plea to the Government to extend cover to last year. I welcome clause 19, but I want coverage to be retrofitted. I hope that Ministers will be sympathetic to that aim as the Bill goes through Committee, in which I hope to participate.
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