Business of the House

Debate between Baroness Laing of Elderslie and Mel Stride

Thursday 11th July 2019 Commons Chamber

[Mel Stride]

I join the hon. Gentleman in congratulating Polly and all those at her school on all the work they are doing to try to see an end to single-use plastics. I point to our own record in this respect: the use of single-use plastic carrier bags has fallen by 86% as a consequence of the charges we have levied. As he will know, we are now looking to go further still by ensuring that we rid our country of single-use plastics as quickly as possible. An Adjournment debate might be a useful avenue for him to pursue.

[Madam Deputy Speaker (Dame Eleanor Laing)]

And the prize for patience and perseverance goes to Hugh Gaffney.

Business of the House

Debate between Baroness Laing of Elderslie and Mel Stride

Thursday 27th June 2019 Commons Chamber

[Mel Stride]

This is clearly a matter of the utmost urgency, and I would be very grateful if the hon. Lady met me immediately after these questions to discuss it.

[Madam Deputy Speaker (Dame Eleanor Laing)]

The hon. Lady asked if the Chair could do anything to help. I can merely say that this is clearly a serious and urgent matter, and I am delighted to hear what the Leader of the House has said, which I am sure will move matters forward.

Business of the House

Debate between Baroness Laing of Elderslie and Mel Stride

Thursday 13th June 2019 Commons Chamber

[Madam Deputy Speaker (Dame Eleanor Laing)]

We all wish the Opposition Chief Whip a very happy birthday.

[Mel Stride]

There is only one person in this House whose birthday is more important than that of the shadow Chief Whip and that is the Chief Whip. I do not know when it is, but whenever it is I wish him a very happy birthday, too. I do not know what the shadow Chief Whip treats himself to on his birthday. Perhaps he polishes the instruments of torture in the Labour Whips’ Office. [Interruption.] He is a softy indeed, as the shadow Leader of the House says, and I wholeheartedly concur with her best wishes to the shadow Chief Whip.

The hon. Lady raised a large number of points, which I will attempt to deal with in turn. She made reference to the blank page that she has received in the forthcoming business. That is indicative of the large amount of business that we will be bringing forward in due course to fill that page and many others. She quite accurately raised the issue of the preponderance of Back-Bench business debates that we are putting forward at the moment. That is for two reasons. One is that we want to hear and engage with Back Benchers, because, as Conservatives, we have a very inclusive style of government. Secondly, the persuasive abilities of the hon. Member for Gateshead (Ian Mearns) know no bounds, so if we want to see fewer of those debates, we will have to have a word with him. The hon. Lady also made a request for Opposition day debates. They are handled through the usual channels and will, of course, be considered in a sensible and measured manner.

The hon. Lady mentioned the Non-Domestic Rating (Lists) Bill. That is a very important measure. The fact that we have brought it forward so quickly underlines its importance in making sure that businesses up and down the country are able to have more frequent valuations of their rates and bringing forward the first revaluation by one year to 2021.

The hon. Lady, once again and quite understandably, asked about the recess dates. I do not have an announcement to make this morning, but I will of course come back to the House with one at the earliest opportunity, and it will be for the House to pass the motion in that respect in the normal way.

The hon. Lady raised the issue of proroguing Parliament as, I think—I am paraphrasing her comments —a device, perhaps to ensure a no-deal situation in the absence of Parliament sitting. That is not the Government’s policy on this at all, and it is certainly our feeling that Her Majesty the Queen should be kept out of politics; it would be unfair to draw her into a political situation in that form.

The hon. Lady made several references to no deal and the various positions of the Conservative candidates—the runners and riders in the forthcoming contest. I do not think it would be right for me to comment specifically on any of them other than to say that what does perhaps unite the whole House is that having a deal is better than having no deal, provided that we can come together to secure that outcome.

To my surprise, actually, the hon. Lady raised the issue of employment—specifically in the west midlands—on which this Government, of course, have an outstanding record. We have the highest level of employment in our history. We have the lowest level of unemployment since 1974. We have halved the level of youth unemployment since 2010. We have continued economic growth, and living standards and real wages are rising as we go forward.

Let me finish by saying that the hon. Lady and I have already struck up a good relationship. We are already seeing eye to eye on many important matters such as restoration and renewal and the work that we will jointly be engaged in on the independent complaints and grievance scheme. We both believe that Parliament must have a strong and loud voice, and of course we both believe in debate and scrutiny. So given that we agree on so much, perhaps I could quote the immortal words of the late, great Amy Winehouse:

“Why don’t you come on over Valerie?”

Finance (No. 3) Bill

Debate between Baroness Laing of Elderslie and Mel Stride

Committee: 1st sitting: House of Commons
Monday 19th November 2018 Commons Chamber

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

rose—

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

Order. It is not for the hon. Lady to ask questions of the Minister at this point. When the Minister is speaking, she might wish to try to intervene at that point, but she cannot require the Minister to answer her question at this point. She can expect him to answer it when he addresses the Committee later. Having said that, if the Minister wishes to jump up at this point, I will not stop him. It is an interesting matter.

[Mel Stride]

I was just going to say that, as the hon. Lady will know, all amendments need to be in scope and that that is ultimately a decision for Mr Speaker. I am sure that he has taken the appropriate decisions in this case—[Interruption.]

Finance (No. 2) Bill

Debate between Baroness Laing of Elderslie and Mel Stride

3rd reading: House of Commons & Report stage: House of Commons
Wednesday 21st February 2018 Commons Chamber

[Madam Deputy Speaker]

Order. I beg the hon. Gentleman’s pardon. I have made a mistake, in that I thought the Minister had already addressed the House on this group. I also beg the Minister’s pardon.

[Mel Stride]

There was a ripple of dissatisfaction when you failed to call me to speak, Madam Deputy Speaker, but it was almost imperceptible. Thank you for correcting your error.

In this debate we have heard about a range of issues, including the changes the Finance Bill makes to the bank levy, the taxation of private finance initiatives, and tax avoidance and evasion. I will respond to each in turn, starting with the bank levy. Opposition Members have raised a number of objections to the changes to the levy made by the Finance Bill and to the Government’s broader approach to bank taxation. These are unjustified. This Government remain committed to ensuring that banks make an appropriate additional tax contribution, beyond that paid by other businesses, that reflects the unique risks they pose to the UK financial system and to the wider economy.

I shall address some of the arguments put forward by the shadow Chief Secretary to the Treasury, the hon. Member for Bootle (Peter Dowd), which I felt focused far too much on the bank levy. It is indeed declining, but there is good reason for that. In 2015, when we took the relevant decisions on this, we recognised that the risks presented by our banks had eased quite considerably. Indeed, the Bank of England has recently carried out rigorous stress testing on the banks, and that was the first occasion on which not a single bank failed its stress test. That is indicative of the fact that one of the raisons d’être for the bank levy has started to recede. That is to say that the banks are less of a risk than they were before, and the charges on the assets and liabilities that they hold are therefore becoming less relevant. The hon. Gentleman did not focus so much on the surcharge to the banking tax, which came in from 1 January 2016 and which represents an additional 8% on the profitability of banks at the present time. Whereas corporations are paying 19%, we are now looking at a total rate of around 27% for banks.

Finance (No. 2) Bill

Debate between Baroness Laing of Elderslie and Mel Stride

Committee: 1st sitting: House of Commons
Monday 18th December 2017 Commons Chamber

[The First Deputy Chairman of Ways and Means (Mrs Eleanor Laing)]

With this it will be convenient to discuss the following:

Amendment 1, in schedule 9, page 132, line 32, leave out from “in” to end of line 33 and insert

“accordance with the provisions of section (bank levy: Part 1 of Schedule 9: pre-commencement requirements)”.

This amendment paves the way for NC3.

New clause 1—Review of operation and effectiveness of bank levy—

“(1) Schedule 19 to FA 2011 (bank levy) is amended as follows.

(2) After paragraph 81, insert—

Part 10

Review

82 (1) Within six months of the passing of the Finance Act 2018, the Chancellor of the Exchequer shall undertake a review of the operation and effectiveness of the bank levy.

(2) The review shall consider in particular—

(a) the effectiveness of the levy in reflecting risks to the financial system and the wider UK economy arising from the banking sector,

(b) the effectiveness of the levy in encouraging banks to move away from riskier funding models,

(c) the revenue effects of the changes to the levy made in Schedule 2 to the Finance (No. 2) Act 2015,

(d) the effectiveness of the anti-avoidance provisions in paragraphs 47 and 48 of this Schedule.

(3) A review shall also compare the effects of the bank levy with those of the bank payroll tax (within the meaning given by Schedule 2 to the Finance Act 2010) in relation to—

(a) revenue, and

(b) the matters specified in sub-paragraph (2)(a) and (b).

(4) A report of the review under this paragraph shall be laid before the House of Commons within one calendar month of its completion.””

This new clause requires the Government to carry out a review of the bank levy, including its effectiveness in relation to its stated aims, the revenue effects of the changes made in 2015 and the comparable effectiveness of the bank payroll tax.

New clause 2—Public register of entities paying the bank levy and payments made—

“(1) Schedule 19 to FA 2011 (bank levy) is amended as follows.

(2) After paragraph 81, insert—

Part 11

Public register of payments

83 (1) It shall be the duty of the Commissioners for Her Majesty’s Revenue and Customs to maintain a public register of groups paying the bank levy and the amounts paid.

(2) In relation to each group, the register shall state whether it is—

(a) a UK banking group,

(b) a building society group,

(c) a foreign banking group, or

(d) a relevant non-banking group.

(3) In relation to each group, the register shall state the amount paid in respect of each chargeable period.

(4) In relation to chargeable periods ending between 28 February 2011 and 31 December 2017, the Commissioners must public the register no later than 31 October 2018.

(5) In respect of subsequent chargeable periods, the Commissioners must public the updated register no later than ten months after the end of the chargeable period.””

This new clause requires HMRC to prepare a public register of banks paying the bank levy and the amount they have paid.

New clause 3—Bank levy: Part 1 of Schedule 9: pre-commencement requirements—

“(1) Part 1 of Schedule 9 shall come into force in accordance with the provisions of this section.

(2) No later than 31 October 2020, the Chancellor of the Exchequer shall lay before the House of Commons an account of the effects of the proposed changes in Part 1 of Schedule 9—

(a) on the public revenue,

(b) in reflecting risks to the financial system and the wider UK economy arising from the banking sector, and

(c) in encouraging banks to move away from riskier funding models.

(3) Part 1 of Schedule 9 shall have effect in relation to chargeable periods ending on or after 1 January 2021 if, no earlier than 30 November 2020, the House of Commons comes to a resolution to that effect.”

This new clause requires the Government to provide a separate analysis of the impact of Part 1 of Schedule 9 nearer to the time of proposed implementation in 2021 and to seek the separate agreement of the House of Commons to commencement in the light of that review.

New clause 11—Review of effects of bank levy on inclusive growth and equality—

“(1) Schedule 19 to FA 2011 (bank levy) is amended as follows.

(2) After paragraph 81, insert—

Part 10

Review on inclusive growth and equality

82 (1) Within six months of the passing of the Finance Act 2018, the Chancellor of the Exchequer shall undertake a review of the bank levy.

(2) The review shall consider in particular—

(a) the effects of the levy on inclusive growth,

(b) the impact of the levy on equality.

(3) A report of the review under this paragraph shall be laid before the House of Commons within one calendar month of its completion.””

This new clause requires the Government to carry out a review of the bank levy, including its effects on inclusive growth and inequality.

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

The Finance Bill makes changes to the bank levy, in particular restricting its scope to UK activities. These changes support our vision to help keep UK banks globally competitive. They reflect improvements in international banking regulation that reduce the risk of overseas operations to the UK, and they complete a set of changes announced in 2015 and 2016 that significantly increase the tax we raise from our banks.

Let me be clear from the outset that this Government believe that banks should make a significant contribution to the public finances, beyond general business taxation, that reflects the risk they pose to the UK economy. That has been the record of Chancellors since 2010. As part of that, in 2011 the Government introduced the bank levy on the balance sheet equity and liabilities of banks and building societies, but this additional tax contribution made by banks has to support our broader objectives for the sector. It therefore needs to be responsive to international commercial and regulatory changes in banking. Any tax changes should ensure that we can continue to secure the additional contribution from the banks from a sustainable tax base, and they also need to ensure we retain a strong, stable and competitive banking sector that supports the wider economy by lending capital to both businesses and individuals.

Finance Bill

Debate between Baroness Laing of Elderslie and Mel Stride

Tuesday 12th September 2017 Commons Chamber

[Madam Deputy Speaker (Mrs Eleanor Laing)]

Order. Even if hon. Members are making a noise in support of the Minister, which I rather think they are, I cannot hear the Minister, and just as others are learning, I am learning from what the Minister is saying, and I would like to hear him.

[Mel Stride]

Thank you for that ruling, Madam Deputy Speaker; I am pleased that you will be able to hear me from now on. I entirely accept the point made by my hon. Friend the Member for Shipley (Philip Davies); if there is to be an insurrection, there must at least be some people present with whom to insurrect.

Ways and Means

Debate between Baroness Laing of Elderslie and Mel Stride

Ways and Means resolution: House of Commons
Wednesday 6th September 2017 Commons Chamber

[Madam Deputy Speaker]

The hon. Gentleman must not add more from a sedentary position to his point of order, so I will not take up that point, which in any case I cannot answer. The Minister has barely begun, and I am sure that in his wide-ranging speech he will cover everything he ought to cover and everything the House requires him to cover.

[Mel Stride]

Thank you, Madam Deputy Speaker. I could not have put that better myself. [Interruption.] And I will get on with it, too. I am not surprised that Labour Members are slightly shy about our discussing their tax plans, because they are not good for our country. Having a plan to raise corporation tax to 26%, with an increase for small companies as well, and to change the tax threshold to bring many, many more people into the higher rate of tax is not a way of incentivising jobs, wealth and economic growth, as the hon. Gentleman well knows.

Our changes to tackle avoidance of corporation tax by multinationals are part of a number of changes that take further steps in tackling tax avoidance and tax evasion. Others covered by these resolutions will introduce a penalty for those who enable tax avoidance, a penalty for transactions connected with VAT fraud and measures to tackle disguised remuneration tax-avoidance schemes.

The Government’s aim to make the tax system fairer is further supported by the Bill’s provisions on the taxation of those with non-domiciled status. A number of changes will be made, and these are forecast to raise £1.6 billion over the next five years. Most importantly, permanent non-dom status for people resident in the UK will be ended, so that they pay tax in the same way as everybody else. That major reform makes the tax system—