Finance Bill

Debate between Dave Doogan and James Murray

Committee of the whole House
Tuesday 10th December 2024 Commons Chamber

[Dave Doogan]

Certainty is only good if it relates to a positive outlook, not a negative outlook. The hon. Member for Gordon and Buchan (Harriet Cross) asked a clear question about the duration. It was not about whether the sector pays fair taxes; we all believe that people should pay fair taxes. Does the Minister still believe that the industry is making extraordinary profits?

[James Murray]

I would like to explain to the hon. Gentleman how the energy security investment mechanism works, because that, to be fair, was put in place by the previous Government, and we are maintaining it. It says that if prices drop below a certain threshold for six months, the energy profits levy ceases early. That gives some certainty and predictability to the oil and gas sector. If prices go below that level, the sector can have confidence that the energy security investment mechanism will end the levy early. If that does not happen, the levy will continue, as we have said, until March 2030.

I am keen—I will set out a few more details later—to engage with the oil and gas sector on the regime post the energy profits levy, because it is important for oil and gas companies making decisions about investment to have certainty about what will happen up until March 2030, and to understand what the regime might be like thereafter. That is why I am looking forward to my conversations with the sector on what the post energy profits levy regime will look like.

Long-term certainty and confidence is being provided to the oil and gas sector by our retention of the levy’s price floor, the energy security investment mechanism, which I was explaining to the hon. Member for Angus and Perthshire Glens (Dave Doogan). It means that the levy will cease permanently if oil and gas prices fall below a set level for a sustained period. Furthermore, as I also just said, to provide stability for the long term, the Government will publish a consultation in early 2025 on how the tax regime will respond to price shocks once the energy profits levy comes to an end. That will give oil and gas producers and their investors predictability and certainty on the future of the fiscal regime, which will support their ability to continue investing, while also ensuring that the nation receives a fair return at a time of exceptional crisis.

Farming and Inheritance Tax

Debate between Dave Doogan and James Murray

Wednesday 4th December 2024 Commons Chamber

[James Murray]

I will not try your patience, Madam Deputy Speaker, but I feel that my hon. Friend’s intervention relates to the debate in hand, as we have had to take a tough decision on taxation policy in order to fund our public services. Those public services are, of course, enjoyed by people across the country, including farmers and those in rural communities.

[Dave Doogan (Angus and Perthshire Glens) (SNP)]

Will the Minister give way on that point?

[James Murray]

I will make some progress.

As I was saying, we could not justify leaving the situation unchanged, with a full, unlimited tax relief benefiting a very small number of estates by a very significant amount, given that there is such an urgent need to repair the public finances and to improve the hospitals, schools and roads on which people across the country depend, including those in rural communities.

National Insurance Contributions (Secondary Class 1 Contributions) Bill

Debate between Dave Doogan and James Murray

2nd reading
Tuesday 3rd December 2024 Commons Chamber

[The Exchequer Secretary to the Treasury (James Murray)]

I beg to move, That the Bill be now read a Second time.

In her Budget statement on 30 October, the Chancellor set out the difficult decisions that we as a Government have been prepared to make on welfare, spending and tax. Those decisions were not just difficult but necessary, given the fiscal irresponsibility and economic mismanagement that had become hallmarks of the previous Government. We inherited a mess, so those decisions were needed to fix the public finances, fund the NHS and other public services and deliver economic stability. We have been determined to take those decisions while protecting working people. That is why our Budget made no changes to income tax, the rate of VAT, or the amount of national insurance that working people pay. As a result of our Budget, people will not see a penny more tax on their payslips.

[Dave Doogan (Angus and Perthshire Glens) (SNP)]

Is the Minister seriously suggesting that, with the best brains in the Treasury on hand, he does not understand that it is a moot point whether someone has a higher national insurance contribution in their payslip, or whether their wages are suppressed and the job that they were going for is not there anymore, because the employer cannot afford to increase their payroll due to this national insurance increase?

[James Murray]

We recognise that we are asking businesses to contribute more, and that this will have impacts, but it will be up to individual businesses to decide how to respond to these changes. The one thing that we know for certain is that if we had chosen a different path—if we had followed the previous Government and increased income tax or national insurance—that would have led to a tax on people’s payslips. It would have led to the amount of money in people’s pockets going down, which would have broken our manifesto promise.

Finance Bill

Debate between Dave Doogan and James Murray

2nd reading
Wednesday 27th November 2024 Commons Chamber

[James Murray]

I have already given way to the right hon. Gentleman, so I will make some progress.

Within the policy, provision for pupils with special educational needs is an important matter that a several right hon. and hon. Members have raised with me. The Government recognise the importance of that too, and I am glad to confirm that where pupils have special educational needs that can only be met in private schools, as determined by an education, health and care plan in England or its equivalent in Scotland, Wales and Northern Ireland, local authorities and devolved Governments that fund those places will be compensated for the VAT they are charged on those pupils’ fees.

Fourthly, this Government are delivering on the manifesto commitments to increase the energy profits levy by three percentage points, from 35% to 38%, and to extend the period over which the levy applies by one year. The Government are also ending unjustifiably generous allowances by removing the levy’s core investment allowance, which was unique to oil and gas taxation and not available to any other sector of the economy. We are, however, providing stability within other features of the system, by maintaining the level of tax relief available for decarbonisation investment, by setting the rate of the allowance at 66% and by maintaining the availability of 100% first-year allowances.

[Dave Doogan (Angus and Perthshire Glens) (SNP)]

The Minister is defending the changes that he is making to the fiscal regime as it relates to the North sea and the production of oil and gas. Can he identify another oil and gas-producing nation that taxes its industry higher than the United Kingdom does?

[James Murray]

We know that other countries tax in different ways. Norway has a high headline rate, although it has a different set of structures of allowances and so on. It is important for us that we calibrate the headline rate and the allowances in the right way. That is why we have taken the measured decision to increase the rate as I described, to remove the investment allowance but at the same time to retain the 100% first-year allowances and the level of relief available for decarbonisation investment.

Winter Fuel Payment

Debate between Dave Doogan and James Murray

Tuesday 10th September 2024 Commons Chamber

[James Murray]

I am going to make some progress.

We are under no illusions. We know it will be a slow and difficult process when the damage goes so deep, but we are determined to fix the foundations of our country so that, on the bedrock of financial stability and fiscal responsibility, we can get our economy growing after 14 years under the Conservatives.

[Dave Doogan (Angus and Perthshire Glens) (SNP)]

I thank the Minister for giving way on the point about fiscal responsibility. I am not sure of the morality of trying to balance this country’s fiscal books on the backs of pensioners. He referenced the manifesto on which the Labour party stood at the election. “No austerity under Labour” was said in Scotland, so what should the 37 Scottish Labour MPs do in this vote? Should they bow down to the Chancellor, or should they stand up for their Scottish constituents?

[James Murray]

Every Labour Member was elected on a promise to restore economic stability and fiscal responsibility to our country, and it is on that basis that we will get the economy growing to make people across the country better off and to put our public services on a sustainable footing. I remind the hon. Gentleman that winter heating assistance is a devolved matter in Scotland. The Scottish Government intend to legislate to introduce a means-tested payment this winter which is equivalent to the winter fuel payment in England and Wales.