Autumn Statement

Debate between Emma Lewell-Buck and Lord Hammond of Runnymede

Wednesday 23rd November 2016 Commons Chamber

[Mr Hammond]

I am grateful for my hon. Friend’s comments and I am glad he is pleased with the statement. I know that he takes a great interest in matters related to fuel duty and vehicle taxation, and I look forward to continuing to engage with him on those issues in the future.

[Mrs Emma Lewell-Buck (South Shields) (Lab)]

I remind the Chancellor that the labour market is not working for everyone. Every single year since 2014 I have asked why this Government are allowing the continued exploitation of workers under sham umbrella companies and false self-employment. Every single year I am told that the matter is under review. As the GMB’s recent success in the court shows, these workers are fed up with waiting. Why is it that under this Government a fair day’s work never really translates into a fair day’s pay?

[Mr Hammond]

First, the hon. Lady will find if she looks in the autumn statement document that we are moving to shut down an abuse of the VAT flat rate scheme that has been used by employment agencies to disguise employment remuneration. But she is right about self-employment, and I also mentioned specifically the increasing challenge of incorporation—the increasing number of single-person, zero-employee, single-director companies. The Prime Minister has asked Matthew Taylor to undertake a review of ways of working—

[Mrs Lewell-Buck]

It has been going on for two years.

[Mr Hammond]

No, it has not been going on for two years. Let me tell the hon. Lady what happened. The Prime Minister took office in July, so it definitely has not been going on for two years. She asked Matthew Taylor to undertake that review, which is now under way. It is a very important review, looking at how employment rights more generally are being affected by this transition in our economy. That is being driven by technology, as much as anything, and I have said today that we also have to look at this issue from the point of view of the tax base, because the tax base is also under threat from these changes.