Finance Bill

Debate between Catherine McKinnell and Ian Murray

Tuesday 1st July 2014 Commons Chamber

[Catherine McKinnell]

It will be no surprise that I find the Minister’s response extremely disappointing and a little concerning in its complacency towards a policy about which widespread concern has been expressed. Taking away the rights of working people across the UK is no substitute for a proper strategy for economic growth. The policy makes it easier to reduce rights at work and fire people, rather than making it easier to hire people. That shows just how out of touch the Government are.

I commend the hon. Member for Bedford (Richard Fuller) on his thoughtful speech. I also commend my hon. Friend the Member for Islwyn (Chris Evans) on his mammoth and excellent speech, and my hon. Friends the Members for Wythenshawe and Sale East (Mike Kane) and for Edinburgh South (Ian Murray). Opposition Members have put forward a powerful argument for the reasonable new clause that we have tabled. It simply asks the Government to make a proper assessment of who is taking up the shares for rights offer and what the cost to the Exchequer will be, including any loss from tax avoidance or abuse. As far as we can see, this is just another way in which the Government are trying to water down the rights of people at work.

Frankly, to Opposition Members and the many business organisations that have expressed their concerns, this policy stinks. The House and members of the public deserve to know exactly what the implications of the policy will be before the horse has bolted. The Government say that they will only shut the gate once that has happened. [Interruption.] I hear hon. Members groan at that, but I quote Lord Deben:

“I cannot imagine any circumstances whatever in which this would be of any use to any business that I have ever come across in my entire life.”—[Official Report, House of Lords, 6 February 2013; Vol. 743, c. 293.]

I think that he puts it very well.

[Ian Murray]

The Minister tried to respond to my two interventions about tax evasion by reading figures from the Red Book. However, the accompanying document to the autumn statement of 2012, at which this policy was announced, states that the policy could cost upwards of £1 billion because there are uncertainties around

“the extent of tax planning”.

That sounds to me like tax avoidance.

[Catherine McKinnell]

I, too, took great interest in what the Minister said, because he seemed to disown the figures that were published by the Office for Budget Responsibility on this policy, as though they were in some unknown ether in the future. He appeared to be saying, “It’s nothing to do with me, guv.” The figures that the OBR predicts are very clear. It will cost £1 billion and a quarter of that can be attributed to tax planning and, if the concerns of the hon. Member for Redcar (Ian Swales) are borne out, tax avoidance.

Oral Answers to Questions

Debate between Catherine McKinnell and Ian Murray

Monday 11th March 2013 Commons Chamber

[Ian Murray (Edinburgh South) (Lab)]

3. What recent assessment he has made of the effects of the Government’s proposal for a single-tier pension on women born between 6 April 1952 and 6 July 1953.

[Catherine McKinnell (Newcastle upon Tyne North) (Lab)]

6. What recent assessment he has made of the effects of the Government’s proposal for a single-tier pension on women born between 6 April 1952 and 6 July 1953.

Enterprise and Regulatory Reform Bill

Debate between Catherine McKinnell and Ian Murray

Wednesday 17th October 2012 Commons Chamber

[Catherine McKinnell]

The shadow Minister is making a powerful case as to why the measures are bad for business. To follow on from the important point made by my hon. Friend the Member for Sunderland Central (Julie Elliott), people who rely on mortgage protection insurance are also likely to be adversely affected if they enter into a settlement agreement. Have the Government considered whether that protection could be invoked if those affected enter into a voluntary agreement to leave their employment?

[Ian Murray]

My hon. Friend makes a fantastic point. I do not have the answer, because the Government have not told us, but it seems that if an insurance company can do anything to get out of paying a particular insurance policy, it will do so. Perhaps the Minister will address that.

Citizens Advice has said clearly—I think it has sent this briefing to all Members—that

“this looks less like an attempt to encourage more use of compromise agreements, than a further erosion of the legal protection against unfair dismissal.”

The Minister has been challenged to say exactly what the settlement agreement represents and to come clean. If she did so, this would be a far easier debate to deal with.

The current system allows for the use of compromise agreements when there is a dispute. The new settlement agreements can be used at any time, but it is clear that they are likely to create a dispute. The reality is that the mere fact of instigating discussions without prior process is likely to cause the end of the employment relationship, which is exactly what the employer will want. It is the equivalent of one party in a personal relationship saying to the other party, completely out of the blue, “I don’t love you anymore.” Who would hang around after that? [Interruption.] My hon. Friend the Member for Hartlepool (Mr Wright) suggests that I am speaking from personal experience, but I could not possibly comment. We propose to delete the Beecroft clause, because it is bad for business and equally bad for employees.