Budget Resolutions

Edward Leigh Excerpts

Thursday 23rd November 2017 Commons Chamber

[John McDonnell]

The issue is that whatever was put forward in the Budget yesterday was so trivial that it will not have the effect that is required.

Investment by businesses is the lowest in the G7 countries. The few measures announced yesterday just will not address that. They will not close the gap between the south and the rest of the country by investing in a rail project in the north-east that will receive just 2% of the total cost of Crossrail in London. Our economy and our people will only reach their potential when there is real new investment brought forward by Government on a scale that is needed to meet the opportunity. The right approach from 2010 would have been to target the real economy and real investments to produce growth and so bring the deficit into line. Because the investment that was needed then did not materialise, productivity growth has stagnated, and because productivity growth has fallen away, the forecast deficit has been widened by the OBR to some £30 billion by 2021. The Government know that austerity is not working. They have now been reduced to fiddling the figures to meet their own targets.

[Sir Edward Leigh (Gainsborough) (Con)]

rose—

[John McDonnell]

Let me just quote the OBR, because it is important. On how the Government will meet some of their targets, the OBR was damning. It said that

“the Government has ensured that net debt still falls fractionally as a share of GDP in 2018-19…It has achieved this largely by announcing fresh sales of RBS shares and by passing regulations that ease local and central government control over housing associations in England.”

That is creative accounting on a scale that we have not seen under any Government. In other words, the Government have met their own debt target—barely—by exploiting a reclassification of housing association debt and putting in some extraordinarily optimistic forecasts for their sale of RBS shares.

[Sir Edward Leigh]

I am very grateful to the right hon. Gentleman for giving way. I am genuinely trying to find a way out of our problems that we agree exist. I accept his point that he wants to borrow more to invest. The trouble is that we are already paying in interest more than we spend on defence and the police—that is just paying interest on our debt. I understand where he is coming from, but whatever we spend this money on, the interest will still be accrued, so how will he deal with that?

[John McDonnell]

Debt under the hon. Gentleman’s Government has gone up by nearly £800 billion, and it is debt to pay for failure rather than to pay for investment. If we borrow to invest, we grow the economy, which means that we can put more people to work with more skills and higher wages. They pay more taxes and it pays for itself. That is the lesson that the Government still have not learned.

The Government appear, as is demonstrated today, to be completely out of touch with the mess that our economy is in. They have no understanding of the consequences of their choices for the lives of our people. They do not seem to grasp the scale of what is happening to our people out there. The Chancellor has tried to claim that income inequality has fallen, but he does not seem to be aware that more than a million food parcels have been handed out in this, the sixth richest economy on the planet. Inequality is not falling. He may well be aware that London is home to more billionaires than ever before, but does he know that there are more people homeless than ever? How can he claim that inequality is falling when that stark comparison is made? This Government’s decisions will make the poorest poorer still. Buried away in an annex, at the very back of the Treasury’s own distributional analysis, is the truth on this. The poorest fifth are being made poorer by the changes this Government is implementing. Those in the poorest fifth will lose almost £250 a year.

The House of Commons Library has confirmed that the burden of cuts—86%—made in tax and benefits measures since 2010 have fallen on women. Is that what equality is under this Government—86% of cuts on the shoulders of women?

Duties of Customs

Edward Leigh Excerpts

Ways and Means resolution: House of Commons
Monday 20th November 2017 Commons Chamber

[Ian Murray (Edinburgh South) (Lab)]

With deep pleasure, I beg to move amendment (e), in paragraph (a), after “goods”, insert

“other than goods originating from the European Union”.

I will also speak to amendment (f). Both amendments stand in my name and the names of my right hon. and hon. Friends.

Let me first say to the hon. Member for Aberdeen South (Ross Thomson) that, although I did not agree with a word he said, I thought he made a good speech. However, while he and I have always disagreed on the European Union and we respect each other’s position—I am very much an elected Member of Parliament who wishes to stay in the EU; I am pro-European Union and he is very much anti-European Union—I have to point out to him the complete intellectual incoherence of the two arguments he makes. He says we can leave the single market, the customs union and European Union and have a frictionless, seamless, invisible border between Northern Ireland and the Republic of Ireland, but during the Scottish independence referendum campaign, he argued that leaving the UK single market would result in a hard border in goods, services and the movement of people. He does the fight against the scourge of independence in Scotland no good by making those contradictory arguments. Many of the arguments that our colleagues in the Scottish National party make about staying in the European Union and working with our closest colleagues and neighbours with regard to trade in goods and free movement of people completely contradict their arguments on coming out of the UK single market. These positions are contradictory, and I warn politicians that when they play with fire, they get burned.

[Sir Edward Leigh (Gainsborough) (Con)]

May I bring the hon. Gentleman back to amendment (e), to which he is the lead signatory? It would close off options and prevent us from imposing any tariffs on goods from the EU. The hon. Member for Bootle (Peter Dowd) described such closing off of options as “pathological”. The hon. Member for Edinburgh South (Ian Murray) always strikes me as a very nice chap; does he share my concern that his own Front-Bench spokesman thinks that amendment (e) is pathological?

[Ian Murray]

I anticipated that intervention, although not quite so early in my speech. I return the hon. Gentleman’s compliments—he is one of the nicest gentlemen in this House. The Labour party’s position on the customs union is that we want the UK to have tariff-free access to the European Union throughout the transition period, with the added option of the UK staying in the customs union. That is the position of our Front-Bench team. It is perfectly clear and chimes perfectly well with amendments (e) and (f).

I am disappointed that the amendments in the name of the hon. Member for Aberdeen North (Kirsty Blackman) were not selected. She has done a lot of work to bring the Ways and Means motion to the House, and I think the arguments advanced reflect the fact that we both want our country to stay in the single market and the customs union, not for ideological reasons, but because we know that the businesses of Aberdeen North and Aberdeen South require us to stay. It is impossible to suggest that the United Kingdom should have exactly the same benefits of the single market and the customs union, with a frictionless border and tariff-free access, but not keep the customs union and the single market on the table. It makes no sense.

--- Later in debate ---

[Ian Murray]

I am grateful for that intervention. I said earlier that nobody voted in the EU referendum to be poorer, yet all the analysis shows that we will be. I would be delighted, if the Minister wants to intervene, if he can point to any analysis done internally, externally or otherwise—by any other Government in any country, any think-tank, any organisation, any business organisation, any individual business—saying that what the Government are offering will make the country better off. I will let him intervene now—I know he is listening; he is just pretending to ignore me. The answer is: absolutely none. The silence is deafening. Not even the producers of our microphones will make more money, because the Minister refuses even to use his to point to just one organisation that says our position will be even remotely similar once we have left the EU. The answer is clearly none. The Government are on the wrong track and gambling everything—the family silver, everything—on a no-deal scenario.

On the impact of our leaving the customs union, I want to deal with a few particular sectors. My hon. Friend the Member for Penistone and Stocksbridge (Angela Smith) mentioned the automotive sector earlier. The Society of Motor Manufacturers and Traders, which is an organisation whose briefings on Budgets and Bills we, as parliamentarians, trust and which I always read with great interest—it is the knowledge in motor manufacturing —has said that going off the cliff and moving to trading on WTO rules would see a 10% tariff on vehicles and an average 4.5% tariff on car components. These figures have been repeated in the House ad nauseam. It also said it would push the cost of an average car up by £1,500. We have already heard figures recently showing new car sales and levels of new car manufacturing dropping dramatically. I think that most people considering whether to buy a new car would decide not to if they knew it was costing an additional £1,500. I appreciate that the Minister does not agree, but I am more likely to believe the SMMT’s figures than the Government at the Dispatch Box saying, “Don’t worry. Everything will be all right on the night”, without giving us any detail about how that could possibly operate in the context of no customs union and no customs arrangements.

[Sir Edward Leigh]

Is the hon. Gentleman happy, then, for us to be locked for all time into a situation where we can never make a free trade deal with any country, bloc or anybody outside the EU, locked into a body with a declining share of trade and locked out of free trade deals with the growing markets in Asia and America? He is happy with that, is he?

[Ian Murray]

I am happy with the intervention—I am delighted with it—because it allows me to say three things: first, the reason the Scotch whisky industry is doing so well is partly because of EU free trade arrangements, particularly with countries such as South Korea; secondly, we are already in 57 free trade agreements; and thirdly, the hon. Gentleman’s Government have failed wholeheartedly to start to negotiate just one free trade agreement, despite all the bluff and bluster about being at the front of the queue, about their happening easily, about our seamlessly entering into these wonderful free trade agreements all over the world.

I say also to the hon. Gentleman that his intervention completely contradicts his first intervention. If he votes against my amendment and we end up trading with WTO rules, and we end up without tariffs with the EU, we will have tariffs with no one and we will ride the waves—rule Britannia—setting up more than 57 free trade agreements with every country banging at our door to trade with us. He is not listening to his Foreign Secretary or Trade Secretary when they say this is becoming much more difficult, if he thinks that free trade agreements with more than 57 countries will just appear as low-hanging fruit from this magic money tree the Government seem always to produce.

Oral Answers to Questions

Edward Leigh Excerpts

Tuesday 24th October 2017 Commons Chamber

[Andrew Jones]

The hon. Gentleman seems to have forgotten the announcement of the national productivity investment fund—a £23 billion pot of money for investment in infrastructure, including digital infrastructure, across the country. I have already mentioned the £400 million digital infrastructure investment fund and the £740 million for full-fibre broadband and 5G. We are already approaching the figure of 95% of UK premises having access to superfast broadband by the end of the year, and that puts us in a strong place for the future.

[Sir Edward Leigh (Gainsborough) (Con)]

5. What steps he is taking to reduce tax-related bureaucracy for small and medium-sized enterprises in the east midlands.

[The Financial Secretary to the Treasury (Mel Stride)]

The Government are committed to reducing the administrative burdens for small and medium-sized enterprises, including in the east midlands. That is why we delivered £272 million of net reductions in administrative burdens between 2011 and 2015, and why we continue to reduce unnecessary interaction with the tax system.

[Sir Edward Leigh]

We still have one of the longest tax codes in the world. I know that the Treasury is under constant pressure to bung extra pieces of money to particular interest groups, but may I suggest to the Minister that he sticks to his last on the Treasury Bench and argues the case for less taxation, simpler taxation and less debt? That is the best service we can give to the young and to businesses.

Finance Bill

Edward Leigh Excerpts

Tuesday 12th September 2017 Commons Chamber

[Mel Stride]

My hon. Friend is right, which reminds us of the overall purpose of raising tax and ensuring that we bring it in, namely to live within our means, pay down our deficit and, critically, have the fine public services that are a hallmark of a civilised society. All of us can unite in wanting that.

The Bill legislates for new rules to prevent large multinational businesses playing the system by claiming tax deductions for excessive interest expenses and ensures that companies cannot use losses to pay no tax even in years when substantial profits are made. In last week’s debate, I was somewhat surprised by the concerns raised by some Opposition Members about the provisions relating to the taxation of businesses trading in Northern Ireland. They are nothing new. They were announced in the 2016 autumn statement and do not create a tax loophole. The legislation simply ensures that all small and medium-sized enterprises with trading activity in Northern Ireland will be able to benefit from the Northern Ireland corporation tax regime in the same way as larger companies already can, and it also introduces additional anti-avoidance rules to ensure that the regime operates as intended. The Bill’s provisions do not weaken that at all; they simply mean that more businesses will be able to apply the regime to the taxation of profits genuinely arising, and only arising, from activities carried out in Northern Ireland once the regime is put into effect.

[Sir Edward Leigh (Gainsborough) (Con)]

My right hon. Friend refers to the taxation and regulation of business, but once we are in the hard, bracing winds of international free trade after Brexit, does he agree that it is essential that our Government ensure that we have a low-tax, deregulated, pro-business environment so that our businesses can compete on the world market?

[Mel Stride]

My hon. Friend is entirely right. That is why the Government have been clear through our tax planning and the information that we have been signalling to the marketplace. Certainty for business is extremely important, which is why we have lowered corporation tax and have stuck to that position. We are making considerable progress, and I will take my hon. Friend’s point on board.

In short, the Bill continues our hard work to drive down the tax gap and ensures that we will provide a fair and competitive tax system. The other part of the deal is that those taxes must be paid.

Oral Answers to Questions

Edward Leigh Excerpts

Tuesday 18th July 2017 Commons Chamber

[Stephen Barclay]

The hon. Lady will be aware that when the Home Office grants refugee status, it includes the biometric residence permit as proof of the holder’s right to stay, but I am very happy to discuss with the hon. Lady any further measures that she feels would be helpful.

[Sir Edward Leigh (Gainsborough) (Con)]

T3. To promote the drive towards world free trade, will the Chancellor of the Exchequer assure the House that he is absolutely, personally and enthusiastically committed to following our manifesto commitment to leave not just the EU at the end of 2019, but the single market and the customs union?

[Mr Philip Hammond]

Yes, I have made it clear on many occasions that when we leave the European Union on 29 March 2019, we will also leave the single market and the customs union. Those are matters of legal necessity. My focus is on ensuring that thereafter we put in place the closest and deepest possible partnership with our European neighbours that will allow us to continue the patterns of trade and business, patterns of security co-operation and patterns of educational exchange and scientific and research collaboration that we enjoy now. That is the best way to protect Britain’s prosperity.

Economy and Jobs

Edward Leigh Excerpts

Thursday 29th June 2017 Commons Chamber

[Mr Hammond]

My hon. Friend is exactly right, and if he bears with me, I shall continue.

That black hole of £8.6 billion a year and rising in taxation will have to be filled by raising tax on ordinary people, and that was just the manifesto. Since the Leader of the Opposition got his new suit, he has been out and about, flinging spending commitments with gusto at anyone he comes into contact with—another £9.5 billion of unfunded commitments for each year of this Parliament. Added to the hole in Labour’s tax plans, that is an additional £90 billion over the course of the Parliament that has to be raised in taxation on ordinary working families.

Let me say that again for the right hon. Member for Hayes and Harlington: £8.6 billion a year of under-recovered tax, according to the IFS, and another £9 billion-plus a year that his right hon. Friend the Leader of the Opposition added in additional unfunded commitments after the manifesto was published. In short, that is the Opposition’s approach to the type of tough decisions that have to be made every day in government about prioritising limited resources—“Should we do x or should we do y?” His answer is just yes: more everything for everyone, and all of it for free—a catastrophic recipe for economic and fiscal disaster.

[Sir Edward Leigh (Gainsborough) (Con)]

In the 10 minutes or so that my right hon. Friend has been speaking, our national debt has increased by nearly £900,000. Will the Chancellor continue to speak up for hard-pressed taxpayers and make the point that, for all this talk of austerity, the debt is still rising? We have to look after the pennies, otherwise we will be up Queer Street.

[Mr Hammond]

My hon. Friend is absolutely right. The debt is still rising, but next year, for the first time in 20 years, we expect to see it beginning to fall as a percentage of GDP—a remarkable achievement after the trashing of our economy by the Labour party in government.