Enterprise Bill [Lords]

Alan Mak Excerpts

Wednesday 9th March 2016 Commons Chamber

[Jonathan Reynolds (Stalybridge and Hyde) (Lab/Co-op)]

Thank you, Mr Speaker. I will certainly endeavour to do so.

I rise in support of the amendment in the name of the hon. Member for Enfield, Southgate (Mr Burrowes), to which I have added my name, as have many other hon. Members on both sides of the House. I am completely opposed to any changes to Sunday trading regulations, whether it is their extension or their devolution to local councils. I am sceptical of what benefits, if any, it would bring to our economy but, more importantly, my concern lies with retail workers and my desire to keep Sunday special.

As a Greater Manchester MP, I am a huge supporter of devolution, particularly to a city as great as ours. However, to me the measure does not feel like beneficial devolution; rather, it feels like a dishonest manoeuvre from a Government who seem obsessed with introducing the policy even though there appears to be no public demand for it. I also have concerns about how the Government have gone about the process, in particular their flawed consultation, which I will address.

I am happy to declare an interest, in that I am an USDAW-sponsored MP, which I am particularly proud of. USDAW has led from the front in this campaign, representing the concerns of ordinary retail workers and ensuring that their voice is heard.

Lots of good, strong arguments were put forward in the excellent speech from the hon. Member for Enfield, Southgate. I, too, intend to focus my speech on the family and faith aspects of Sundays but, first, I want to express my serious concerns about how the Government have gone about attempting to introduce the change. I believe it is at best mischievous and at worst a borderline fantasy when the Government say that the Bill in itself will not enact any changes to Sunday trading regulations, but leave that open to local councils to decide. They know as well as all hon. Members do that the measure will result in extended opening hours on Sundays. As soon as one council does it, neighbouring councils will soon fall, one after another, until extended hours are uniform.

[Mr Alan Mak (Havant) (Con)]

Will the hon. Gentleman give way?

[Jonathan Reynolds]

I will not give way because of the time constraints.

The Government should stop insulting the intelligence of the House and treat the clause as what it is: an explicit attempt to extend Sunday trading hours. I believe that devolution should be used to give councils the powers that they want and need. It should not be a way for the Government to abdicate responsibility for changes that they do not want to be blamed for, when they feel that the changes they intend to make will be unpopular and controversial. If the Government want to extend Sunday trading regulations, they should have the courage to introduce explicit legislation, so that Members of the House can have a proper debate and scrutinise the proposals. Instead, the Government have chosen to hide behind the veneer of devolution.

--- Later in debate ---

[Brandon Lewis]

I will take some interventions in a moment. If Members vote against amendment 1, as I am asking them to do, I will make sure that we have a pilot scheme that runs over 12 months, which will give us further evidence, so that we can come back to this House for full scrutiny, a debate and a vote.

[Mr Mak]

Does the Minister agree that another point of reassurance to hon. Members across the House is the fact that contained in the Government’s Bill are zoning provisions, which allow local authorities to choose the areas that will benefit from enhanced Sunday trading laws? That is a fair compromise.

[Brandon Lewis]

My hon. Friend is absolutely right. There is in the Bill an ability to zone. Local areas that want to carry out a pilot will be able to specify exactly how they want to do it and what that zone will look like. This scheme is all about absolutely trusting local people to do what they know is right for their area. By doing it this way, there is no need for amendment 1. Our intention is to increase freedom, protect shopworkers’ rights, grow our economy, and protect our high streets while devolving power from Whitehall to town halls. We want to see power devolving to local areas, because they know their economies and their high streets best and they want this power to see their economies grow.

Oral Answers to Questions

Alan Mak Excerpts

Tuesday 1st March 2016 Commons Chamber

[Mr Alan Mak (Havant) (Con)]

About 40,000 people in my constituency have benefited from the rise in the personal allowance since 2010. Can the Chancellor confirm that the Government will continue to help hard-working people to keep more of the money that they earn?

[Mr Osborne]

That is absolutely what the Government were elected to deliver. We have manifesto commitments to deliver not just the £50,000 threshold for the higher rate, but a £12,500 personal allowance, so that more people can see the benefit of either paying no tax if they are low paid, or paying less tax if they are better paid.

Bank of England and Financial Services Bill [Lords]

Alan Mak Excerpts

Monday 1st February 2016 Commons Chamber

[Mr Alan Mak (Havant) (Con)]

I am pleased to speak in support of this important Bill, which delivers a new settlement for the financial services sector—a vital sector of the UK economy—by strengthening the Bank of England and the regulatory regime governing individuals working in the sector. In particular, the Bill deserves support because it puts the Bank of England at the centre of a new regulatory system that will give it new powers, more responsibilities and better procedures. It will also strengthen the Bank’s governance, transparency and accountability and increase the accountability of staff working in our important financial services sector.

When the idea of a Bank of England first emerged after William and Mary came to the throne in 1688, the public finances were in disarray, the system of money and credit was weak and our financial markets were on the verge of collapse. Things were not much better 320 years later, however, under a Labour Government, who oversaw a banking system that had become too concentrated, took too many risks, and acted against taxpayers’ interests. It was under the discredited tripartite system that people such as Fred Goodwin were allowed to receive huge bonuses while running their banks into the ground.

Today our financial services sector is much stronger, and it requires the up-to-date effective governance and regulation that the Bill proposes. According to TheCityUK trade body, the financial services sector employs 7% of the UK workforce—two-thirds of whom are outside London—and accounts for 12% of our GDP. It is absolutely right that this Bill should support a growing and moral financial services sector.

I support clause 1, which will make the deputy governor for markets and banking a member of the Bank of England’s court. Following the expansion of the Bank’s responsibilities through the Financial Services Act 2012, a fourth deputy governor, with responsibility for markets and banking, was appointed and given responsibility for reshaping the Bank’s balance sheet. This important role, currently filled by Dame Minouche Shafik, does not have statutory membership of the court. Clause 1 will rectify that situation and ensure equal status for the fourth deputy governor. It will also give the Government the necessary flexibility to update the membership of the court, the Financial Policy Committee, the MPC and the new Prudential Regulation Committee. This will ensure flexibility to meet future need, and that the court is fit for purpose.

When the Bank opened for business in 1694 in temporary accommodation in the Mercers Hall in Cheapside, it had a staff of 17 clerks and two gatekeepers. Today its personnel is much wider, and none are more important than the members of the court. That is why I welcome the reforms in clause 1. It will update the powers of the court and increase its flexibility to ensure that new expertise is added when necessary. These are practical powers and they deserve the support of the entire House. I also welcome the reforms to the Oversight Committee, the Financial Policy Committee and the Monetary Policy Committee that my right hon. Friend the Member for Chichester (Mr Tyrie), who is no longer in his place, articulately outlined.

A key element of the Bill is the transformation of the Prudential Regulatory Authority into the Prudential Regulation Committee. As Members will know, the PRA is responsible for the supervision of around 1,700 banks, building societies, credit unions and major investment firms. The transition will result in the PRA, a subsidiary of the Bank of England, becoming the PRC, a committee of the Bank. This will ensure that it is fully integrated into the Bank’s work while retaining its operational independence. This measure deserves the support of all hon. Members—[Interruption.]—including those on the Opposition Front Bench. This will continue the process of building a unified institution, which will allow the new authority to focus more closely on its policy work, rather than thinking about back-office issues such as IT procurement.

[Rob Marris (Wolverhampton South West) (Lab)]

Is there anything in the Bill that the hon. Gentleman does not like?

[Mr Mak]

I am sure that the hon. Gentleman will agree that the proposals support the Governor’s “one mission, one bank” strategy, which entails supervision being conducted in a more effective and efficient way, as befits an institution of our modern global economy. The new arrangements come with important safeguards. For example, the statutory objectives of the PRA will remain undiminished; the name and the brand will remain unchanged; and its reputation for tough regulation will remain undimmed.

On financial services, the Minister mentioned earlier that one of the least attractive elements of Labour’s financial crisis was that no one at the top of the main financial services institutions faced formal punishment from the regulators or the courts. There appeared to be no link between the actions of those at the top and the fate of the institutions that they led. One of the FCA’s reports stated that

“individual accountability was often unclear or confused”.

The Bill strengthens and clarifies the individual accountability of those working in our systemically important financial services sector. I also believe that these reforms will embed a new culture within the sector, rather than simply reshaping the legal and regulatory framework.

Before I entered this House, I had the privilege of working with TheCityUK and a number of others working in the financial services sector on writing a report entitled the “Next Generation Vision for Financial Services”. It asked that our financial services sector be a part of society, not apart from society. I am pleased that the reforms set out in this Bill, in the clauses that I mentioned, will help our sector to get closer to the vision we articulated.

I particularly welcome the extension of the senior managers certification regime to all regulated firms, not just to deposit takers. The expansion of the regime to all financial services firms and all staff will enhance the culture of personal responsibility for senior managers, while, we hope, increasing the accountability of other staff who work in our financial services sector. It will also ensure that as the sector expands the regulation and the laws governing its operation increase to match the scope and size of the industry. Many firms beyond the banking sector, from investment firms and insurers to those involved in the so-called “shadow banking” sector, can pose a threat to financial stability, and it is therefore right to include them in this new regime.

In conclusion, the growth of the financial services sector, in both size and complexity, the globalisation of our economy and Labour’s financial crisis mean that the governance, functions and powers of the Bank of England need to be updated. So, too, does the regime that governs the individuals who work within our financial services sector. This Bill achieves both goals, ensuring a Bank of England that is fit for purpose: an effective central bank in a growing 21st century economy sitting at the heart of the world’s most successful financial services industry. The Bill deserves the support of the whole House.

HMRC and Google (Settlement)

Alan Mak Excerpts

Monday 25th January 2016 Commons Chamber

[Mr Gauke]

There has been a shift in public opinion in recent years, and the pressure on companies to pay the tax that is due under the law is greater than ever before. I welcome that, and I welcome that change in public opinion, but it is the measures taken by this Government that mean that we are getting additional sums from large companies, as has been demonstrated in the past couple of days.

[Mr Alan Mak (Havant) (Con)]

Following the successful Google settlement, will the Minister confirm that the Government will continue to work with our international partners and organisations such as the OECD to continue taking a lead to ensure that our tax laws are complied with—action that Labour failed to take over 13 years?

[Mr Gauke]

My hon. Friend makes an important point. It was very much the Prime Minister who got the OECD and the G20 to focus on how multinational companies are taxed. It is right that we did that and that we are making progress, and I am pleased that this is coming to fruition.

Small Businesses: Tax Reporting

Alan Mak Excerpts

Monday 25th January 2016 Westminster Hall

[Oliver Dowden]

There is an issue, but the Government have said in their response to the petition that they will consider it. I hope for clarification on the question of the speed of broadband connection—businesses in my and many other constituencies rely on fast broadband, so for it not to be in place makes things difficult—and on the broader point about ensuring that small businesspeople who fill out tax returns have sufficient skills to do so. I also hope for reassurance from the Minister about a training programme and other online resources to enable small businesses to have those skills.

Despite what the Government have said in their response to the petition, the proposals announced in the autumn statement raise a number of issues, some of which have already been mentioned in the debate. I, too, will address such matters before other Members have the opportunity to examine them in more detail.

The Petitions Committee recently undertook a public consultation via Twitter, and I thank the Clerks for their hard work, which made it possible. Unbelievably, in 24 hours we received 1,285 tweets from 565 contributors, all of which can be seen by searching #HOCpetitions. The responses reflect concerns also expressed to me by the Federation of Small Businesses. I will briefly address some of those concerns.

The proposed measures, as I understand the situation, form part of the Government’s “Making tax digital” proposals, which most people agree is the right direction of travel. An end to bureaucratic form filling and associated unnecessary complications, and full access to digital accounts, all of which are promised in “Making tax digital”, would certainly be welcome. I commend the Government for their commitment to that agenda.

As we all know, however, the path to new Government initiatives, in particular those involving new IT, rarely runs smoothly, and we only have to think back to the introduction of tax credits or to the Rural Payments Agency under the previous Government for the evidence. I therefore urge the Minister to proceed with caution.

I note from the Government response to the petition that there will be consultation throughout 2016 and voluntary introduction before full phasing in by 2020. Many people are concerned that users should be fully consulted and systems properly tested before full roll-out. Furthermore, the system should be properly secure.

[Mr Alan Mak (Havant) (Con)]

I thank my hon. Friend for securing the debate. I draw the House’s attention to my entry in the Register of Members’ Financial Interests: I am the founder of two small businesses. He rightly said that the Government should ensure positive digital competency in respect of businesses being asked to participate in the scheme, but is he also aware that more than 99% of VAT returns are filed online? A high percentage of HMRC documents are already filed online, which should give the Government great confidence when they roll out the reforms.

[Oliver Dowden]

That is an important point. While there are questions to raise, it is important not to get carried away. The overall direction of Government travel is towards having a digital system for tax returns, and I hope that Members agree that that is the right thing to do. The questions are about the speed and pace of roll-out and appropriate consultation.

The difference between VAT and what is contemplated here is that VAT returns have a threshold, so the very smallest businesses do not fill them out, but they will do so in this case. That is an argument for caution. Another concern raised by petitioners is the nature and financial cost of digital reporting. It would therefore be helpful if the Government gave greater clarity on the scale, cost and nature of the information to be provided. Estimates suggest that businesses already pay on average £3,600 a year to ensure that they are compliant with their tax and regulatory obligations and we, as a Government, must take away from that, not add to it. Surely, that is the measure of any successful tax reform. It is therefore vital that the net effect of the measure is to reduce, not add to, that regulatory burden.

Oral Answers to Questions

Alan Mak Excerpts

Tuesday 19th January 2016 Commons Chamber

[Harriett Baldwin]

I will take that as a Budget submission.

[Mr Alan Mak (Havant) (Con)]

7. What fiscal steps he is taking to support businesses.

[Andrew Rosindell (Romford) (Con)]

11. What fiscal steps he is taking to support small business owners.

[The First Secretary of State and Chancellor of the Exchequer (Mr George Osborne)]

The Government are backing businesses by cutting their taxes. We have given Britain the lowest corporate tax rate in the G20, and we are cutting it further. To support small businesses, the employment allowance will rise by 50% in April, and we are doubling small business rate relief. This Government understand that we create jobs and raise money for public services by backing companies, not by punishing them with the kind of anti-business, anti-enterprise nonsense that we hear from the Labour party.

[Mr Mak]

Manufacturers in my constituency, such as Innova Design, are growing, thanks to the rise in investment allowance tax relief which takes effect this month. Will the Chancellor join me in congratulating Innova Design on its growth and success, and will he also continue to support the British manufacturing sector, an industry that was neglected by Labour for 13 years?

[Mr Osborne]

Absolutely. I join my hon. Friend in congratulating Innova Design on the work that it is doing. We are investing in transport infrastructure on the south coast, and we are also backing companies—not just there, but around the country—with a permanent annual allowance of £200,000, which is the highest that it has ever been.

Oral Answers to Questions

Alan Mak Excerpts

Wednesday 9th December 2015 Commons Chamber

[Mr Osborne]

The hon. Lady mentions the tragic bombing of the hospital. A review is going on to ensure that the coalition has accurate information for its strikes. When it comes to Yemen, we are working with the Saudi Government to make sure that they can review this information and that it is accurate. I am afraid we have no control over the Syrian Government and Assad, which is one of the reasons we would like to see Assad go.

[Mr Alan Mak (Havant) (Con)]

Q15. The regeneration of Dunsbury Hill Farm in my constituency will create up to 3,500 new jobs, which is good news for an area where unemployment has halved since 2010. Will the Chancellor commit to continuing investment in the Solent regional economy, an area that much prefers his big Red Book to any other type?

[Mr Osborne]

I am delighted to hear about the regeneration of Dunsbury Hill Farm. It is part of the good news in my hon. Friend’s area, where, thanks to local businesses and to his work as a new MP in attracting infrastructure and investment into his constituency, the claimant count is down by 25% in the past year alone. I am glad he likes the Red Book of the Government and does not have so much time for the little red book brandished by Opposition Members.

European Union Referendum Bill

Alan Mak Excerpts

Tuesday 8th December 2015 Commons Chamber

[Mr Jenkin]

I agree with my hon. Friend, and will add that, where the Electoral Commission clearly has a duty, its decision can be judiciously reviewed. In respect of the designation of only one campaign, I have absolutely no doubt that there would instantly be a judicial review, and I speak with knowledge aforethought.

In the absence of the duties on the Electoral Commission —for example, to provide for impartial and objective information from the Government—it is a moral imperative on Ministers to ensure that they undertake their obligations in the spirit of a fair referendum, and not to abuse the trust that this legislation places on them with regard to the publication of that information.

[Mr Alan Mak (Havant) (Con)]

On 9 June, I began my parliamentary career with a maiden speech on this very Bill. I am incredibly grateful to be given the opportunity to speak again on this matter as the Bill makes its way through this House.

Deciding on whether we should continue to be a member of the European Union is one of the most important issues of our generation. We should be thankful about some elements of our relationship, particularly our access to the single market, and our non-involvement in Schengen and in the euro. There are other areas in which we are not getting a good deal, and the Prime Minister is right to renegotiate our relationship to request a better deal. He and the Secretary of State for Business, Innovation and Skills, along with other Members, have said that we should not be afraid to leave if we find that the deal is not good enough for our country and our future.

As the country makes its decision, and as the referendum period begins, I am mindful that the public will need information about the offer on the table. They will need factual and speculative information about what “in” and “out” mean, and about what our future might be under a different arrangement. The public will also need legal, political, financial and economic information. Above all, they will need a well-run and well-administered referendum, and therein lies a key role for the Electoral Commission. The public will also need information on what the Swiss and Norwegian models look like to see which would be a good fit for this country, and whether we are better off staying in a reformed European Union.

[Mr Andrew Turner]

Does my hon. Friend agree that there are not just two alternatives—Switzerland and Norway—but lots and lots and lots of alternatives?

[Mr Mak]

My hon. Friend makes a fantastic point. I certainly agree that there are a number of alternatives. I look forward to referendum debates in the media, in this House and in many other forums.

I wish to return now to the central role of the Electoral Commission. My view is that the Electoral Commission should not be drawn into playing any sort of quasi-judicial or quasi-campaigning role. It should play a central role in the good functioning and administration of the referendum. We should always be mindful of the commission’s own views, which have been set out in a letter that has been distributed to Members across the House, and to which we should pay heed.

I am also heartened about the vibrancy of our democracy. Even though we are still in the early stages of our debate, it has already produced a number of campaigning groups. I am very pleased to see some senior Members from across the House participating in today’s debate. The campaign groups that have been set up include: Vote Leave, Take Control; Leave.EU; and Conservatives for Britain, which has been skilfully organised by my hon. Friend the Member for Wycombe (Mr Baker). I can see my hon. Friend the Member for Harwich and North Essex (Mr Jenkin) and my right hon. Friend the Member for Wokingham (John Redwood) who have played leading roles in the campaign. On the Opposition benches, we have Labour in for Britain, which is led by the right hon. Member for Kingston upon Hull West and Hessle (Alan Johnson); and Britain Stronger in Europe, for which my right hon. Friend the Member for Ashford (Damian Green) plays a leading role. Even before the referendum gets under way, there is a vibrancy of debate across the House and also in the country, which is very positive.

[Simon Hoare]

My hon. Friend is right to set out the span of organisations. I do not know whether my inbox in my constituency of North Dorset is at odds with those of the rest of the House. I get lots of emails about lots of things—hundreds about bees over the weekend—but I cannot think of the last time I received an email about the EU. We in the House are inclined to obsess about it, and we forget that outside, people are trying to live their lives and all they want to know is that the Government are on their side. We should not focus down to what is happening here.

[Mr Mak]

I thank my hon. Friend for his characteristically cogent intervention. He is right that, beyond the walls of this place, men and women, families and businesses and community organisations play their day-to-day role, focus on other priorities and are not necessarily concentrating on the EU referendum or those issues on which this House concentrates.

[Sir William Cash]

I refer vicariously to the most recent opinion poll, which showed that 52% of the United Kingdom electorate thought that they should leave and only 48% thought that they should stay in; 60% of those in the south-west said that they wanted to leave.

[Mr Mak]

I thank my hon. Friend for his intervention. I was just finishing my response to my hon. Friend the Member for North Dorset (Simon Hoare). I hope that through debates in this House we shall be able to take a lead on the issues. I welcome emails from people on all sides of the argument.

[John Redwood]

Surely the point that the British people fully understand, which is why they now wish to leave the EU, is that concerns about migration, jobs, taxation, the £10 billion that we have to pay to the rest of the EU, which we cannot have as tax cuts or extra spending, and our inability to form our own welfare laws are vital concerns, and they are all European issues.

--- Later in debate ---

[Mr Mak]

I thank my right hon. Friend for his characteristically passionate intervention. As I said to my hon. Friend the Member for North Dorset, those issues are certainly important, and I welcome more emails over the next year or so—maybe that is not necessarily the best message for my constituents in Havant! I know that hon. Members across the House will be receiving representations from their constituents arguing on all sides of the debate, whether in letters, emails or petitions. That is an important part of our increasingly vibrant democracy.

[Mrs Main]

The hon. Member for North Dorset (Simon Hoare) mentioned bees, but the issue relates to the EU directive on the neonicotinoid ban, so his emails are about Europe. It is just that his constituents are not mentioning the word “Europe”. The emails are about EU regulation.

[Mr Mak]

My hon. Friend makes a good point. We debate many issues in this Chamber, Westminster Hall and other forums on the parliamentary estate, and Europe makes an important intervention in those issues, which we should be mindful of.

I want to talk about the role of the referendum and Lords amendments 5, 6 and 13. I want to remind the House of the text and intention of Lords amendment 5, which introduces a new clause that will create a duty for the Secretary of State to publish a report setting out what has been agreed by the member states following the renegotiation of the UK’s membership of the EU that has been requested by the UK Government. The report, as my hon. Friend the Member for Harwich and North Essex said, will also require the UK Government to set out an opinion about what has been agreed, and it will have to be published at least 10 weeks before the date of the referendum. The Secretary of State would also be required to place a copy before Parliament.

Lords amendment 6 introduces a new clause that creates a duty on the Secretary of State—probably the Foreign Secretary—to publish a report setting out information about the rights and obligations that arise under EU law as a result of the UK’s membership of the EU. The rights in this case refer to the rights that the UK has as a member state and rights that are granted to individuals and organisations under EU law. Those could include rights of access to the single market. The obligations arise under EU law and apply to the UK as a member state and to organisations or individuals. Those could include the obligation on the UK as a member state to amend national law to bring it in line with EU law in a particular area.

The duty in Lords amendment 6 would also require the Secretary of State to include a report about examples of arrangements that other countries have with the EU, whether that is Switzerland or Norway or other countries that have a relationship with but are not members of the EU. Again, the report would have to be published at least 10 weeks before the referendum date and the Secretary of State would be required to lay a copy before Parliament.

--- Later in debate ---

[Kevin Foster]

My hon. Friend is going over the impact of making the Electoral Commission quasi-judicial, but Secretaries of State and Ministers are answerable to this Parliament and in particular to this House. It would put the commission in the role of partly taking on the job of Parliament.

[Mr Mak]

My hon. Friend makes an outstanding point. To give the Electoral Commission a role beyond its current role would be to tread on the feet of hon. Members and encroach on the democratic freedoms and roles of this Parliament. My hon. Friend is right that the Electoral Commission does not agree with the intention of my hon. Friend the Member for Stone. As my hon. Friend the Member for Torbay (Kevin Foster) says, there are better sources of information—such as literature from the various campaign groups that I mentioned and information from public bodies such as the Office for Budget Responsibility or the Bank of England. I would encourage members of the public to read Hansard, where the speeches of many distinguished hon. Members can be found, including from this very debate.

[Sir William Cash]

It would be useful, if people really wanted to hear how the debate was progressing, for them to follow the transcripts of European Scrutiny Committee, Treasury Committee and Foreign Affairs Committee proceedings. That will tell them an enormous amount about what is going on and what questions are being asked of Ministers.

[Mr Mak]

My hon. Friend makes a cogent point. The proceedings in this Chamber are available not only in Hansard but on parliamentlive.tv as well as BBC Parliament. I encourage all members of the public and all those who are interested in the proceedings of the House to tune in, particularly to my hon. Friend’s Committee, the European Scrutiny Committee, which he has led with distinction for many years, and other Select Committees, including my own, the Procedure Committee, which has been involved in numerous deliberations. I am delighted to see two of my distinguished Committee colleagues in the Chamber today.

The Electoral Commission undertook research as part of its statutory assessment of the type of information that the public would want to know as the referendum process began. As my hon. Friend the Member for Torbay and the hon. Member for Glenrothes (Peter Grant) said, it found that members of the public were not necessarily clear about what the consequences of the referendum would be. There was no real understanding among large sections of the public about what leaving would entail. There was not enough information about what staying in would entail. There was certainly some confusion about the very many campaign groups that have sprung up, which I mentioned as I opened my speech.

What the Electoral Commission did say, which I found heartening, was that there was a strong appetite for more information about the implications of leaving, as well as an appetite for information about the implications of remaining and, as my right hon. Friend the Member for Wokingham said, information about other models of engagement, including Switzerland, Norway, other members of the European economic area and, indeed, countries in Asia, Africa, Latin and South America. He is absolutely right: there are a number of models that can be invoked and, according to the Electoral Commission, the public are keen to have more information. As the hon. Member for Glenrothes said, there is an appetite for more information.

The Electoral Commission found that the public do not simply want dry facts. They would like contextual information, including worked examples, explanations and case studies, giving the views of right hon. and hon. Members. The Electoral Commission recommended that campaign groups, which I mentioned at the beginning of my speech, include on their websites and in their literature worked examples and real-life case studies, along with testimonies from Members of Parliament, Members of the other place and members of the public who wish to share their experience. That would help a great deal to educate the public about the choices to be made.

The Electoral Commission said in its letter that it would be reluctant to adopt the extra powers that some hon. Members believe that it should have, as it has no powers to police information that is put into the public domain alongside Government reports. It has no legislative powers to regulate such information. Finally, the Electoral Commission made a good, cogent point with which I agree. It does not have the capabilities to undertake an extension of its role, which some Members of the House of Lords and of the House of Commons have proposed that it should have. It said in its letter, referring to the extension of its powers regarding the referendum and the Government report, that

“it is also the case that we would not have the capabilities to do so”.

It also said:

“We will have no insider knowledge of the negotiations, nor the required expertise to judge a report to Parliament about the UK’s membership of the EU.”

[Suella Fernandes (Fareham) (Con)]

I thank my hon. Friend for highlighting the Electoral Commission’s extensive assessment of the amendment. Does he agree that the fatal blow for the amendment is the fact that the commission has opined that it does not have the capabilities or insider knowledge to carry out the duty that it would impose on it?

[Mr Mak]

I thank my hon. Friend and near neighbour. As a barrister, she is learned in these matters. I entirely agree that that is a persuasive argument in the commission’s letter to Members of Parliament.

[Sir William Cash]

My hon. Friend will have heard that the Electoral Commission has had duties imposed on it by Parliament, but what the amendment is driving at above all else, with respect to him and to my hon. Friend the Member for Fareham (Suella Fernandes), is that there should be proper impartiality and accuracy in the information. If the commission cannot do that, the Government can. If they do not do it, the courts will ensure that they do.

[Mr Mak]

I thank my hon. Friend for his explanation. My interpretation of the letter is that the commission did not want to take on more powers, as it already has core duties, including the good administration of elections and of the referendum. It conceded that it was not an expert in constitutional law, politics or negotiations about the UK’s continued membership of the EU; it was merely a good administrator, and that is the role that Parliament centrally wants it to fulfil. It is certainly the role that I want it to fulfil as the referendum process continues. The commission was saying, frankly and openly, that it lacked the expertise to make any determination about the Government report.

Next year, as many right hon. and hon. Members will know, we will have local, county and mayoral elections, as well as police and crime commissioner elections, which will increase the workload of the commission in its current guise, whether it is arbitrating on voter rolls, interpreting various aspects of election law or undertaking other statutory duties, which are all a drain on its resources. The Electoral Commission lacks the necessary expertise, as my hon. Friend the Member for Fareham (Suella Fernandes) said, and will be burdened with a heavy workload next year, given the frequency and geographic spread of elections in which it will be involved, particularly from an administrative perspective. There is therefore no role for the commission as proposed by the amendment, so the Government’s view should prevail.

May I turn briefly to Lords amendment 13, which was tabled by Baroness Anelay of St Johns and has some support in this House? I should like to elucidate what it does and to share my views on its place in this House. As hon. Members will know, section 108 of the Political Parties, Elections and Referendums Act 2000 allows the Electoral Commission to designate permitted participants—that is likely to be the campaign groups that I mentioned earlier—as organisations to which assistance is available under section 110 of that Act. Such assistance could be logistical or financial, and in some cases there would be media opportunities. Where a referendum has only two outcomes, which is the case for the EU referendum, as my right hon. Friend the Member for Wokingham and others have said, under section 108, the Electoral Commission can exercise the power to designate one organisation for each of the outcomes or not designate any at all.

Lords amendment 13 would enable the Electoral Commission to designate a lead campaigner for one side of the argument, whether that is to remain in the EU or to leave it, at the referendum without designating a lead campaigner for the other side. That would apply only where for a particular outcome, whether to leave or to remain, there were no applications on the other side or the Electoral Commission was not satisfied that there was an applicant who adequately represented those campaigning for that outcome. For example, vexatious or clearly inadequate groups would be disregarded by the commission.

In the event that only one campaigner was designated, that campaigner would be entitled to a higher spending limit, a free mail-out to voters and access to meeting rooms—for example, in council or other municipal buildings—which is a positive. However, it is important for the House to note that that campaigner would not be entitled to a grant from the Electoral Commission of up to £600,000 under section 110 of the 2000 Act, nor would they be allowed to make a referendum broadcast to the people of this country under section 127 of that Act.

Having reviewed the amendments in this place and the other place, and having read representations from the Electoral Commission and from broadcasters, my view is that that is a fair compromise. The amendment implements recommendations that the Electoral Commission made following the 2011 referendum on the voting system. As I said at the start of my remarks, we must pay heed to what the Electoral Commission says, while also taking into account hon. Members’ views. Based on the experiences of 2011, the Electoral Commission recommended that steps should be taken to reduce the potential advantages under the 2000 Act designation model for a prospective lead campaigner to decide against applying for the designation. The Electoral Commission had identified an example where a campaigner might have a tactical advantage in not seeking designation with a view to frustrating the other side’s access to additional benefits. I find that a cogent observation on the part of the Electoral Commission.

I said that I would touch briefly on Lords amendment 13. The Government’s position on all the amendments deserves the support of the House.

Oral Answers to Questions

Alan Mak Excerpts

Tuesday 1st December 2015 Commons Chamber

[Mr Speaker]

The hon. Member for Havant (Mr Mak) looks animated and contented. Let’s hear from the fellow.

[Mr Alan Mak (Havant) (Con)]

Thank you, Mr Speaker. Household debt will be kept low, thanks to the Government’s support for savers, including the Help to Buy ISA that was launched today. Will the Minister join me in encouraging first-time buyers and young savers to take advantage of this new Government support, which is part of the Government’s long-term economic plan?

[Harriett Baldwin]

I am delighted that, on behalf of his constituents in Havant, my hon. Friend has noticed that the Help to Buy ISA scheme launches today. Fourteen financial institutions are already offering this exciting new opportunity to save for a home, and I hope that many of his constituents will take advantage of it.

HMRC Office Closures

Alan Mak Excerpts

Tuesday 24th November 2015 Commons Chamber

[Hannah Bardell]

The hon. Gentleman is getting a little ahead of himself; I will come to that.

Ironically, during the referendum many argued that independence for Scotland would result in job losses in public services. It was lauded as the Union dividend, and we in Scotland were told by the then Chief Secretary to the Treasury, Danny Alexander, who sadly is no longer in his place:

“That dividend is our share of a more prosperous future. It is the money that will pay for better public services and a fairer society.”

In July and August 2014, the Scottish Labour party tweeted that 3,200 jobs at HMRC were

“just one of the reasons that being part of the UK is best for Scottish jobs…and 1,400 jobs at HMRC in Cumbernauld are dependent on us staying in the UK.”

That was clearly not the case. I hope that those on the Labour Benches, who will also no doubt have constituencies affected by these closures, will reflect on those comments and think carefully about who can be trusted when it comes to jobs in Scotland.

The tax gap in 2013-14 was estimated to be £34 billion, which amounts to 6.4% of total theoretical tax liabilities. Small and medium-sized enterprises account for the largest portion of the overall tax gap—some £16.5 billion ––followed by large businesses with some £9.5 billion. We in the SNP take the view that the vast majority of SMEs actively want to contribute to society by paying tax and that a high proportion of the SME tax gap will have been lost through errors and miscommunications.

[Mr Alan Mak (Havant) (Con)]

Will the hon. Lady give way?

[Hannah Bardell]

I shall continue. The UK Government’s plan to slash 137 local HMRC offices across the UK will inevitably have a knock-on impact on the ability of SMEs to access information and advice on tax.

I would like to give my personal thanks to Gary Stein and his PCS colleagues who met me, my hon. Friend the Member for Linlithgow and East Falkirk (Martyn Day) and MSP Angela Constance immediately after the closure announcement. I know that other PCS colleagues held similar meetings across Scotland and the UK. Gary and his PCS colleagues are working hard to engage staff and management in offices in West Lothian and have made clear their concerns about morale and the range of issues that I have highlighted. It cannot remain unsaid how valuable our local unions are in this process, and I am sure that it is not without sinister intention that the Government have marched ahead with their undemocratic Trade Union Bill, which would mean that the important work that our unions do in such situations would be made ever more difficult. Never has it been more vital that we have good engagement with the workforces who deliver essential public services.

--- Later in debate ---

[Mr Gauke]

HMRC’s “needs enhanced support” service was brought in as a partial replacement of the inquiry centres. My hon. Friend raises an interesting point about HMRC’s presence. However, it has a strong record in dealing with avoidance and evasion, there has been a substantial increase in prosecutions and it is hard to open a newspaper without reading reports of the wealthy facing significant tax bills because HMRC is successfully closing down tax avoidance schemes. That shows that HMRC is reducing this behaviour.

[Mr Mak]

I am heartened by the Minister’s confirmation that reducing the tax gap and protecting tax revenues remains a key priority. Will he confirm that the progress in that area has been strong since the Government took office, resulting in more than £57 billion extra tax revenue being collected compared with 2005-06?

[Mr Gauke]

My hon. Friend is right to say that our record is strong, and we remain absolutely committed to that priority.