UK Armed Forces

Debate between Baroness Laing of Elderslie and James Cartlidge

Monday 11th March 2024 Commons Chamber

[James Cartlidge]

I do not think that we can commit to levels of public expenditure or tax cuts, for example, without being confident that the economy can support them in a prudent fashion—an entirely reasonable and rational approach. However, I totally agree with my right hon. Friend the Chair of the Defence Committee. We all recognise that we are living in a more dangerous world—the Secretary of State has alluded to the threats we face not just in Ukraine but in respect of other adversaries around the world—and I totally understand why there is the wider debate on what we spend, but we already have a significant budget, and we must ensure that it is spent well and delivers value for money. That is why a key priority for me is reform of our procurement system so that we can ensure that our armed forces can prioritise effectively. Ultimately, it is the capability that we have now that will determine our ability to warfight.

[Madam Deputy Speaker (Dame Eleanor Laing)]

I call the SNP spokesman.

--- Later in debate ---

[James Cartlidge]

We engaged with this issue in the hon. Gentleman’s Westminster Hall debate on accommodation, in which I announced our plans for Chicksands. I entirely accept that this is a matter on which there should be engagement with the local community, and that there will be a range of views. I emphasise that we have put an extra £400 million into accommodation, which has allowed us to deliver our winter plan highly effectively. There has been a massive increase in the number of properties in the defence estate benefiting from damp and mould packages, but also from new doors and so on, to deal with long-standing issues in the estate, and I am keen to do more.

[Madam Deputy Speaker]

Finally, I call Jim Shannon.

Nuclear Defence Infrastructure: Parliamentary Scrutiny

Debate between Baroness Laing of Elderslie and James Cartlidge

Wednesday 24th January 2024 Commons Chamber

[James Cartlidge]

I have enjoyed the fact that the hon. Lady has tabled a number of written questions on these matters. I have always answered them as transparently as possible, setting out the full facts, and will continue to do so. Indeed, the very point of being here is that we are transparent in Parliament about our deterrent. We engage fully with Parliament, including the Defence and Scottish Affairs Committees, and we will continue to do so. We publish transparency data for all major defence programmes annually, including nuclear infrastructure, and, in line with industry good practice, our nuclear sites have well-established and transparent systems for raising what are known in the industry as nuclear site event reports, about which the hon. Lady has asked a number of written questions. This open documentation of human error, procedural or documentation failings, and equipment issues provides the strongest illustration of our commitment to transparency. More importantly, it fosters a culture of continual improvement and enhances the rigour of our collective approach to safety.

The safety of our nuclear defence infrastructure is paramount. Our nuclear establishments fully adhere to current—

[Madam Deputy Speaker (Dame Eleanor Laing)]

Order. I am sorry to interrupt the Minister. I have said this before but everybody seems to think it is funny to ignore it. It is fine to whisper if you need to communicate with one another, but it is simply rude to talk at the top of your voice, so that I can hear what people are saying on the Back Benches but I cannot hear the Minister. It is simply discourteous.

[James Cartlidge]

I think they are very enthused, Madam Deputy Speaker.

Our nuclear establishments fully adhere to current regulatory and operational requirements. They are subject to a painstaking programme of maintenance by highly trained experts. To ensure their reliability and safety far into the future, we are carrying out a £1.4 billion upgrade of our nuclear facilities at HMNB Clyde, which will ensure they are ready to receive the next generation Dreadnought class of submarines. As colleagues would expect, all these improvements are being made in line with current and foreseeable future regulatory requirements.

To conclude, we cannot look after our nuclear infrastructure without highly trained people. To support our future submarine programmes, we are investing around £200 million in world-class training for our current and future submariners. The Government have robust maintenance programmes in place to deal with some of the challenges to non-nuclear infrastructure at HMNB Clyde. We will continue to do everything we can to ensure that our nuclear deterrent infrastructure both keeps us safe and continues to adhere to the most stringent safety and regulatory standards.

Question put and agreed to.

Finance (No. 2) Bill

Debate between Baroness Laing of Elderslie and James Cartlidge

Committee of the whole House
Wednesday 19th April 2023 Commons Chamber

[The Chairman]

With this it will be convenient to discuss the following:

Amendment 8, page 197, line 35, after “costs” insert “and relevant investment expenditure”.

This amendment is linked to Amendment 9.

Amendment 9, page 198, line 3, at end insert—

“Where the generating undertaking is a generator of renewable energy, determine the amount of relevant investment expenditure and also subtract that amount.”

This amendment, together with Amendments 8, 10 and 11 would allow generators of renewable energy to offset money re-invested in renewable projects against the levy.

Amendment 10, in clause 279, page 199, line 13, at end insert—

“a “generator of renewable energy” means—

(a) a company, other than a member of a group, that operates, or

(b) a group of companies that includes at least one member who operates a generating station generating electricity from a renewable source within the meaning of section 32M of the Energy Act 1989;

“relevant investment expenditure” means any profits of a generator of renewable energy that have been re-invested in renewable projects;”

This amendment is linked to Amendment 9.

Amendment 11, page 199, line 18, at end insert—

“a “renewable project” is any project involving the generation of electricity from a renewable source within the meaning of section 32M of the Energy Act 1989;”

This amendment is linked to Amendment 9.

Clauses 279 to 312 stand part.

New clause 11—Assessment of the impact of the electricity generator levy—

“(1) The Chancellor of the Exchequer must, within six months of this Act coming into force, publish an assessment of the impact of the electricity generator levy on investment in renewable energy in the UK.

(2) The assessment must include a comparative assessment of the impact of the energy (oil and gas) profits levy and the investment allowance on overall investment in UK upstream petroleum production.

(3) The assessment must include an evaluation of the impact of the electricity generator levy on the United Kingdom’s ability to meet its climate commitments, including—

(a) the target for 2050 set out in section 1 of the Climate Change Act 2008, and

(b) the duty under section 4 of the Climate Change Act 2008 to ensure that the net UK carbon account for a budgetary period does not exceed the carbon budget.”

This new clause would require the Government to conduct an assessment of the impact of the Electricity Generator Levy on investment in renewables and the delivery of the UK’s climate targets, including a comparative assessment of the impact of the Energy Profits Levy and the investment allowance, on investment in oil and gas production.

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

It is always a pleasure to appear so early and unexpectedly. This grouping is about the electricity generator levy. Before I address the specific clauses, here is a reminder of why we are debating this ultimately exceptional new tax.

We have to remember that Putin’s weaponisation of gas supplies to Europe has pushed energy prices to record levels. In 2022, UK wholesale energy prices rose to eight times their historical level. Despite recent falls, gas prices, which currently drive the market price for electricity, remain at twice their pre-pandemic level, which means that the price achieved by some electricity generators has risen considerably, driven by natural gas prices.

The Government have absorbed a substantial portion of the price increase through our generous support for households and businesses, which is why we have chosen to capture the windfall profits of oil and gas extraction with the energy profits levy. The Government are now introducing an electricity generator levy. The EGL is designed to capture only the exceptional receipts that electricity generators make, by taxing only the amounts above their normal return while preserving the incentive to invest in the capacity we need.

Clauses 278 to 280 detail the calculation of the levy, which will be applied at a 45% rate on revenues above a benchmark price for UK generation activities. The benchmark price of £75 per megawatt-hour is set approximately 1.5 times higher than the pre-crisis average. The benchmark price will be indexed to inflation from April 2024. To ensure that the levy applies only to large commercial operations with the capacity to administer the tax, the EGL includes an annual generation output threshold of 50 GWh, which is equivalent to approximately 15,000 domestic rooftop solar panels. A £10 million allowance provides further protection for smaller businesses from undue administrative burden and reduces the impact of the levy for those in scope. The levy applies from 1 January 2023 and will end on 31 March 2028, although colleagues will appreciate that the design of the levy is such that, should prices return to normal, no tax will be due. To ensure that the tax does not have unintended consequences, clause 279 excludes certain technologies.

Clauses 281 to 285 provide definitions for in-scope generation and the calculation of exceptional receipts. As I have outlined, the benchmark price has been set so that the EGL applies only to revenues from the sale of electricity at prices higher than the pre-crisis expectations of generators and investors. The levy applies to receipts from power sold on to the grid from wind, solar, biomass, nuclear and energy-from-waste technology. It applies to revenues that generators actually receive, taking account of contracts which might involve selling power over a longer period for a stable price. Certain types of transaction are excluded, such as “private wire” not sold via the grid, as well as power sold under contracts for difference with the Low Carbon Contracts Company, which is the Government’s flagship scheme supporting investment in renewables. Clauses 283 to 285 set out provisions for the recognition of exceptional costs related to the acquisition of fuel and from revenue-sharing arrangements. These provisions reflect the fact that for some generators fuel acquisition costs will have increased as a result of the energy crisis.

Clauses 286 to 300 deal with detailed arrangements for various structures of business operating in electricity generation. Owing to the size and complexity of projects involved, there are a number of common structures for generation undertakings. Those often involve large group companies, sometimes with significant minority shareholders. Others involve a number of businesses forming a joint venture. For example, a company specialising in offshore wind might go into business with a finance provider to deliver a large and complex project, sharing the revenues and risk between them. There are rules to treat these so-called “joint ventures” as stand-alone generation undertakings for the purposes of the EGL. These clauses ensure that businesses with in-scope revenues pay an appropriate share of EGL liability.

Clauses 301 to 305 provide rules for the payment of EGL. The EGL is a temporary measure that has been carefully designed to minimise the administrative burden on businesses. Firms within scope of the levy will pay it as part of their corporation tax return, albeit that EGL is a separate and new tax. The provisions for paying corporation tax are therefore applied here, including in respect of the supply of information, the collection of tax due and the right of appeal.

I turn briefly to the final clauses on the EGL, clauses 306 to 312. Those provisions ensure that the EGL applies to in-scope revenues from generation activities regardless of company type. Appropriate anti-avoidance rules are also included. Clause 309 details the interaction between EGL and corporation tax for accounting purposes, including the fact that EGL is not deductible from profits for corporation tax purposes.

In conclusion, these provisions ensure that, where electricity generators are realising exceptional receipts as a result of the current crisis, they make a fair and proportionate contribution to the support that the Government have provided to households and businesses. Importantly, the levy is designed to apply only to the excess portion of those revenues, in order to maintain the incentive to produce low-carbon electricity. This is in addition to the Government’s extensive support for investment in UK electricity generation. I will of course respond to proposed amendments, assuming that we hear about them, in the debate. In the meantime, I ask that clauses 278 to 312 stand part of the Bill.

--- Later in debate ---

[James Cartlidge]

This is entirely true, but of course selling on the international market means that, through our balance of trade, we have an economy where we can afford to import. It is about comparative advantage.

As I have described, the Government are providing extensive support for renewables in order to decarbonise our power system and meet our ambitious net zero commitments. The EGL has been carefully designed with those objectives in mind. I therefore urge the Committee to reject the amendments and to agree that clauses 278 to 312 stand part of the Bill.

Question put and agreed to.

Clause 278 accordingly ordered to stand part of the Bill.

Clauses 279 to 312 ordered to stand part of the Bill.

Clause 27

Power to clarify tax treatment of devolved social security benefits

Question proposed, That the clause stand part of the Bill.

[The Chairman of Ways and Means (Dame Eleanor Laing)]

With this it will be convenient to discuss the following:

Clause 47 stand part.

Amendment 25, in clause 48, page 39, line 32, at end insert—

“(aa) section (exemption: Scotch Whisky),”.

This is a paving amendment for NC9, which would exempt Scotch Whisky from the increase in duty on spirits.

Clause 48 stand part.

Amendment 7, in schedule 7, page 334, line 18, leave out “£31.64” and insert “£28.74”.

That schedule 7 be the Seventh schedule to the Bill.

Clause 50 stand part.

That schedule 8 be the Eighth schedule to the Bill.

Clauses 51 to 54 stand part.

That schedule 9 be the Ninth schedule to the Bill.

Clauses 55 to 60 stand part.

New clause 9—Exemption: Scotch Whisky—

“(1) The rate of duty on spirits shown in Schedule 7 shall not apply in respect of Scotch Whisky.

(2) The rate of duty in respect of Scotch Whisky shall continue to be the rate that applied before this Act came into force.

(3) For the purposes of this section, “Scotch Whisky” has the meaning given in regulation 3 of the Scotch Whisky Regulations 2009 (S.I. 2009, No. 2890).”

This new clause would exempt Scotch Whisky, as defined in the Scotch Whisky Regulations 2009, from the increase in duty on spirits

[James Cartlidge]

We have had pensions and energy, and we conclude with alcohol, and of course one other minor matter is covered. We are specifically debating clauses 27, 47, 48 and 50 to 60, and schedules 7 to 9, which cover powers to clarify the tax treatment of devolved social security benefits—that is the measure not relating to alcohol—as well as the change to alcohol duty and the introduction of two new reliefs for alcohol duty.

Clause 27 introduces a new power to enable the tax treatment of new payments or new top-up welfare payments introduced by the devolved Administrations to be confirmed as social security income by statutory instrument. The changes made by clause 27 will allow the UK Government to confirm the tax treatment of new payments or new top-up payments introduced by the devolved Administrations within the tax year, rather than their being subject to the UK parliamentary timetable.

I will now turn to the main issue of alcohol duty, and specifically clauses 47 and 48, which set out the charging of alcohol duty, and schedule 7. In line with our plan to manage the UK economy responsibly, we are reverting to the standard approach of uprating the previously published reformed rates and structures by the retail price index, while increasing the value of draught relief to ensure that the duty on an average pint of beer or lower-strength cider served on tap in a pub does not increase. Most importantly, these clauses introduce the Government’s historic alcohol duty reforms: the biggest overhaul of the alcohol duty system in over 140 years, made possible by our departure from the European Union.

The current alcohol duty system is complex and outdated. The Institute for Fiscal Studies has said that our system of alcohol taxation is “a mess”; the Institute of Economic Affairs has said that it “defies common sense”; and the World Health Organisation has said that countries such as the UK that follow the EU alcohol rules are

“unable to implement tax systems that are optimal from the perspective of public health.”

As such, at Budget 2020, the Government announced that they would take forward a review of alcohol duty. This legislation is the culmination of that review, and makes changes to the overall duty structure for alcohol. It moves us from individual, product-specific duties and bands to a single duty on all alcoholic products and a standardised series of tax bands based on alcoholic strength.

The clauses we are debating today repeal and replace, with variations, the Alcoholic Liquor Duties Act 1979 and sections 4 and 5 of the Finance Act 1995. Specifically, clause 47 provides for alcohol duty to be charged on alcoholic products, clause 48 explains where the rates of alcohol duty can be found—that is, in schedule 7—and schedule 7 itself provides the standard or full rates of alcohol duty to be applied to alcoholic products. This radical simplification of the alcohol duty system reduces the number of duty bands from 15 to six, and has only been made possible since leaving the EU. Now, thanks to the Windsor framework, I can confirm that these reforms can now also be implemented in Northern Ireland. The new alcohol duty structures, rates and reliefs will take effect from 1 August this year, which brings me to the new reliefs.

--- Later in debate ---

[James Cartlidge]

It is a fair point from the hon. Lady. I do think this is a significant simplification. We are moving from 15 bands to six. I would love it to be 15 to one, but unfortunately “Fifteen to One” is going to remain the name of a quiz programme. If she looks carefully at the new rates—I am more than happy to share a copy of the bands with her—she will see that it is a significant simplification. It provides many benefits to the wine trade, particularly with our differential duty and the small producers relief.

To conclude, I will be happy to respond to the amendments on Scotch whisky at the end, but in the meantime I commend to the Committee clauses 27, 47, 48 and 50 to 60, and schedules 7 to 9.

[The Chairman of Ways and Means (Dame Eleanor Laing)]

I call Alistair Carmichael.

Judicial Review and Courts Bill

Debate between Baroness Laing of Elderslie and James Cartlidge

Report stage
Tuesday 25th January 2022 Commons Chamber

[James Cartlidge]

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

[Madam Deputy Speaker (Dame Eleanor Laing)]

With this it will be convenient to discuss the following:

New clause 2—Online Procedural Assistance—

‘(1) Online Procedural Assistance, must be made available and accessible to any party or potential party to proceedings governed by Online Procedure Rules that requires it. In delivering this duty, the Lord Chancellor must have due regard to the intersection of digital exclusion with other factors, such as age, poverty, disability and geography and deliver support services accordingly.

(2) It must include assistance to enable such a party or potential party to have a reasonable understanding of the nature of the proceedings, the procedure applicable under Online Procedure Rules and of how to access and navigate such procedure. To this effect, it will provide both advice and technical hardware, as appropriate, and will provide assistance to such individuals throughout the course of their proceedings.

(3) Anyone who requires Online Procedural Assistance must have the option of receiving it either via remote appointments or in-person appointments at a site local to them.

(4) Online Procedural Assistance must include, for a party or potential party whose first language is not English, assistance, by interpretation or translation as appropriate, in a language that is familiar to the party or potential party.

(5) The delivery of Online Procedural Assistance must be evaluated at yearly intervals by an independent evaluation team. To assist in these evaluations, data must be routinely collected relating to the protected characteristics of those using the service, outcomes of cases that used Online Procedural Assistance and the frequency and location of the appointments provided. This must also be made publicly available.’

This new clause clarifies the nature of online procedural assistance.

New clause 3—Review of the single justice procedure—

‘(1) Within two months beginning with the day on which this Act is passed, the Secretary of State must commission a review of and publish a report on the effectiveness of the single justice procedure.

(2) A review under subsection (1) must consider—

(a) the transparency of the single justice procedure in line with the principle of open justice,

(b) the suitability of the use of the single justice procedure for Covid-19 offences, and

(c) prosecution errors for Covid-19 offences under the single justice procedure and what redress victims of errors have.

(3) The Secretary of State must lay a copy of the report before Parliament.’

New clause 7—Compatibility with Article 6 of the European Convention on Human Rights—

‘(1) This Act must be construed in accordance with Article 6 of the European Convention on Human Rights.

(2) If a court or tribunal has found a provision of this Act to be incompatible with Article 6 of the European Convention on Human Rights, it may, on application, make an order to that effect and that provision shall cease to have effect.’

This new clause would ensure the compatibility of the Act with Article 6 of the ECHR (right to a fair trial).

Amendment 36, clause 3, page 4, line 28, at end insert—

‘(1) Before this section may come into force, the Secretary of State must—

(a) commission an independent review of the potential impact, efficacy, and operational issues on defendants and the criminal justice system of the automatic online conviction and penalty for certain summary offences;

(b) lay before Parliament the report and findings of this independent review; and

(c) provide a response explaining whether and how such issues which have been identified will be mitigated.’

This amendment would require a review of clause 3 before it can come into force.

Amendment 20, page 5, line 34, at end insert—

‘(e) the prosecutor is satisfied that the accused does not have any vulnerabilities and disabilities that impede the ability of the accused to understand or effectively participate in proceedings, having undertaken a physical and mental health assessment.’

This amendment would require that all accused persons considered for automatic online convictions are subject to a health assessment, and that only those who do not have any vulnerabilities or disabilities are given the option of being convicted online.

Amendment 21, page 5, leave out lines 35 to 37 and insert—

‘(4) An offence may not be specified in regulations under subsection (3)(a) unless it is—

(a) a summary offence that is not punishable with imprisonment; and

(b) a non-recordable offence, which excludes any offence set out in the Schedule to the National Police Records (Recordable Offences) Regulations 2000/1139 (as amended).’

This amendment would exclude any offences which are recordable from the automatic online conviction option.

Amendment 22, clause 9, page 26, line 1, leave out subsection (5).

This amendment would remove cases involving children and young people from the provisions of clause 9.

Amendment 40, clause 21, page 39, line 13, leave out “(3) and (4)” and insert “(3), (4) and (4A)”.

This amendment is consequential on Amendment 41.

Amendment 41, page 39, line 30, at end insert—

‘(4A) The Lord President of the Court of Session is to appoint one person with experience in and knowledge of the Scottish legal system.’

This amendment would require the Online Procedure Committee to include a person with experience in and knowledge of the Scottish legal system, appointed by the Lord President of the Court of Session.

Government amendments 7 to 19.

[James Cartlidge]

The Government’s new clause 1 will provide powers to vary the maximum prison sentence that magistrates courts can give for a single offence. Court recovery remains a top priority for the Government. We have considered all options to support recovery in the criminal courts and have already taken several steps, such as investing £250 million in court recovery in the last financial year. The most recent spending review settlement provides £477 million to improve waiting times for victims and to reduce Crown court backlogs caused by the pandemic.

Lawfare and UK Court System

Debate between Baroness Laing of Elderslie and James Cartlidge

Thursday 20th January 2022 Commons Chamber

[James Cartlidge]

I will respond to the intervention first, because this is important. I said at the beginning that I would not comment on specific cases no matter how—

[Madam Deputy Speaker (Dame Eleanor Laing)]

Order. We will be very careful about specific cases. I understand the point that the right hon. Gentleman is making, but the Minister is being rightly careful. There are perhaps some discussions that might better take place not here in the glare of publicity.

Homelessness

Debate between Baroness Laing of Elderslie and James Cartlidge

Wednesday 29th January 2020 Commons Chamber

[James Cartlidge]

That is a very fair point, but the Government are, of course, looking at it, and we await further details. None the less, it is a perfectly valid point. I was simply arguing that, ultimately, the best thing that can happen to those tenants in that position is for them to have choice—to have more supply. Here we have a sector with build to rent that can bring significant extra supply. When we talk about supply, the key thing is additionality, which is a terribly technical word. In other words, it really is additional stock that has come about as a result of an intervention in the planning or funding system, and that additional stock would not have happened without that intervention. It is an incredibly important point.

I also want to talk about regeneration. If we look at the NPPF, we will see that there is encouragement for that type of tenure, for build to rent, where there is large-scale urban regeneration. Something that concerns me about the current housing dialogue, particularly in some Labour-controlled London boroughs, is that, let us be honest, regeneration has become something of a dirty work. It is seen as enforced gentrification by some. Actually, there is a point in that. There have been urban regeneration schemes in some areas, particularly in London, where, arguably, some of the people who lived in the development before the regeneration lost out compared with what happened afterwards. It is difficult, because, in theory, the great thing with regeneration is that greater density brings more supply and improvement to the current stock for those who already live in the development. It is about regenerating and improving an area. That is something that has been supported by parties from across the divide, but we need to see much more of it and more joined-up support from Government for it. We can build on greenfield, on brownfield or on existing stock through regeneration. There is nothing else available unless we reclaim the sea through polderisation, and I do not think that that is about to happen any time soon.

If we do not have significant urban regeneration, we see disproportionate pressure on the countryside, and easy planning decisions of just building more and more on greenfield sites. Brownfield sites come under pressure when we need economic development—when we need land for industry and so on. Regeneration is the key, and that combination of large-scale build-to-rent developments in densely populated urban areas is one part—only one part—of delivering that increased supply so that there is less pressure on rents and, as wages increase, we can reduce the number of people becoming statutorily homeless at the end of an assured shorthold tenancy. There is no easy single answer, but those factors can form a joined-up, holistic, one-nation Conservative housing policy.

[Madam Deputy Speaker (Dame Eleanor Laing)]

I am delighted to call Abena Oppong-Asare to make her maiden speech.