(5 years, 1 month ago)
Commons ChamberI will come on to just that, and I thank my hon. Friend for reminding us; we know the impact of that would be again to crash our economy.
The Chancellor knows that under the British Government’s Brexit plans, the no-deal cliff-edge would only move to the end of phase 2. So if we do get to his Budget statement on 6 November, can we ask the Office for Budget Responsibility to give us some analysis of what that would mean for the British economy?
First, there is no no-deal cliff-edge. If the hon. Gentleman wants to have a smooth exit from the EU, he knows what to do—vote for the deal and support the Government’s programme motion.
(5 years, 1 month ago)
Commons ChamberMy hon. Friend is right to raise that concern on behalf of his constituents. Of course, we run a very substantial services surplus with the rest of the world, and that will be unaffected by these customs declarations. What he says of his concerns is true; that is why I hope very much that the House will come together to support the Government in procuring a deal before we leave the EU.
Diolch yn fawr iawn, Mr Speaker. The Tories’ claim to be the party of business and law and order has been blown apart by its Brexit policies. What is the point of the Conservative party today?
I do not need to tell the hon. Gentleman that conservatism, as a body of thought, has many virtues, and business has traditionally benefited from the Conservative party’s commitment to low taxation and a supportive business economy. If he casts an eye over the spending round, he will see an enormous array of investments designed to complement growth in business with growth in public services. It is that balance that makes for good government.
(5 years, 8 months ago)
Commons ChamberI congratulate the hon. Member for Dudley South (Mike Wood) on securing the debate. As my hon. Friend the Member for Coventry South (Mr Cunningham) said, this is not the first time that we have debated many of these issues, but I very much agree with the hon. Member for Aberdeen North (Kirsty Blackman) that this has been a good-humoured debate, albeit one with rather too many puns. This debate is also important, as so many Members from right across the country have said, because the UK pub is renowned around the world—the oldest one was established right back in the 11th century—and an essential feature of our national life.
We have already gone through many of the statistics, so I will not do that now, but I very much agree with the hon. Member for Ribble Valley (Mr Evans) that much of the economic impact of the pub and brewery sector is indirect as well as direct. We have talked a lot about the impact on employment. It was very interesting, in particular, to hear about the experience of my hon. Friend the Member for Heywood and Middleton (Liz McInnes) and about her working life. It was also the first taste that I had of working life. Working in a pub and restaurant I was paid the princely sum of £2 an hour before Labour’s minimum wage was introduced.
This sector is very important, supporting around 1 million jobs in the UK. Those who work in it contribute many payroll taxes as well. However, pubs are really also community hubs, as so many hon. Members have said. My hon. Friend the Member for Ealing Central and Acton (Dr Huq) referred to the role that they can play in combating loneliness. We have heard about how pubs can help older gentlemen—I do not know why I am gesturing in the direction of the hon. Member for Beckenham (Bob Stewart)—and how they are open to mothers in the run-up to Mothers’ Day.
We recently had a consultation in the west of Wales on the reconfiguration of health services. Dr Rhys Thomas, one of the lead consultants, informed us that one of the biggest public health challenges that we face is loneliness, so there is a public health aspect to this as well.
I absolutely agree with that point. There is now evidence of that. Work has been undertaken, commissioned by CAMRA, which set out clearly that there is a positive impact of people using pubs in the kinds of ways that we have been talking about during this debate. The point has also been made that many people who use pubs are not necessarily drinking alcohol. They use them in a whole variety of ways. I would also mention the fact that many pubs—particularly community pubs, and I will come back to that point later—are setting up special sessions for people with different conditions, such as dementia, so they are very important institutions from that point of view.
We have seen some worrying developments, which many Members have referred to. We have seen pubs closing at an alarming rate. Last summer, we saw figures showing that 18 pubs a week are closing. Those closures are occurring at the same time as the closures of libraries, post offices, banks and many local shops. They are happening in rural areas, as has been mentioned, but in urban areas as well. My hon. Friend the Member for Chesterfield (Toby Perkins) noted very movingly what happens when the last pub leaves an estate, and my hon. Friend the Member for Barnsley East (Stephanie Peacock) raised the same issue.
Members on both sides of the House rightly referred to the importance of local pubs, but also drew attention to the challenges they face. The first of those challenges relates to the tax system, and involves beer tax, small brewer’s relief and business rates.
We are in a peculiar position when it comes to beer tax. I agree with the Institute for Fiscal Studies, which has said that
“The UK’s current system of alcohol excise duties is a mess”,
and that the way in which we tax our alcohol does not necessarily
“fully correct for the social costs of alcohol.”
I hope that the Minister will spell out what the Government intend to do in the longer term, because a longer-term approach is needed, given the developments at EU level that were mentioned earlier and given the development of the low-alcohol beer sector, which was mentioned by the hon. Member for Faversham and Mid Kent (Helen Whately) and many others. Those developments are significant, but the tax system has not yet responded to them.
Many Members, including the hon. Member for Caithness, Sutherland and Easter Ross (Jamie Stone), my hon. Friend the Member for North Tyneside (Mary Glindon) and the hon. Member for Strangford (Jim Shannon), referred to the corrosive impact of low-quality, high-alcohol products which are drunk at home and are cheaper to drink at home.
We had an interesting discussion about small brewer’s relief. My hon. Friend the Member for Stoke-on-Trent North (Ruth Smeeth) spoke of its importance to small breweries, but I think we should also look carefully at its calibration in the light of the unintended consequences that were mentioned. My hon. Friend the Member for Keighley (John Grogan) made some good suggestions, and I hope that they will be noted in the review that is currently being undertaken. Despite those pressures, however, we are seeing incredible innovations, especially in the craft brewery sector. I want to plug the micro-pub movement which is taking place in my constituency, and our amazing covered market as well.
Many Members referred to business rates, which have been extremely damaging to pubs and to many other businesses that are based on bricks rather than clicks. My hon. Friend the Member for Stoke-on-Trent North, and many other Members, talked about the imbalance in that regard. A business pays corporation tax only when it has become profitable, but the Government appear to have focused on reducing the corporation tax rate. My party would not take that approach, because we value the high streets and we value bricks-and-mortar-based businesses. Of course, that does not just apply to pubs. My hon. Friend the Member for Cardiff West (Kevin Brennan) mentioned the impact on music venues, many of which are, in practice, in the same place as the local pub. We need to look at these issues in the round, and, in fact, we should look at them in relation to council tax as well. That is why we have committed ourselves to a proper review of local taxation, which we think is well overdue.
However, pubs face many other impediments that are not related to tax. That point was made very forcefully by my hon. Friend the Member for West Bromwich West (Mr Bailey). The pubs code, which was intended to level the playing field for small pub tenants, has not operated in the way in which many of us hoped that it would. It appears that the situation is being manipulated, which is immensely problematic, because, as was pointed out by my hon. Friend the Member for Leeds North West (Alex Sobel), tenants are still subservient to pub companies. That is also a big problem for the social mobility referred to by my hon. Friend the Member for Coatbridge, Chryston and Bellshill (Hugh Gaffney), because it means that people who start off pulling pints cannot end up as pub owners.
I should like to hear from the Minister when the compulsory review of the pubs code will be announced. I thought that it was to be announced this month. Can we also be assured that the process will be open and accountable? We need to restore trust and accountability to the process. We also, as was mentioned by my hon. Friend the Member for Stroud (Dr Drew), need to make sure communities are aware of that social value process so they can take over those community assets when they want to; many communities are not aware of it.
Many of us have said this debate is a refuge from Brexit, but, sadly, it is not entirely of course. That is first because the workforce is very important to the pub sector and we are all aware of many of the concerns about what will happen if in particular we have a threshold of £30,000 to get workers into the UK. UK Hospitality has said the current proposals are illogical. We need to deal with this challenge. Also, the hon. Member for Waveney (Peter Aldous) rightly referred to the importance of exports from our brewery industry in particular; we must not impose any additional bureaucracy on those exporters, particularly in growth fields and innovative parts of our brewing industry.
I hope the Minister will respond to my points in his remarks, particularly on the beer tax, small brewer’s relief, business rates and some of the legal issues.
(5 years, 9 months ago)
Commons ChamberUrgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
Each Urgent Question requires a Government Minister to give a response on the debate topic.
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My right hon. Friend hits the nail firmly on the head. What we must do to move from uncertainty to a situation in which we can begin to concentrate on negotiating our future relationship with the European Union while everything remains stable and the same until the end of 2020 is to pass the deal as he suggests.
The fundamental problem with the British Government’s policy as it stands is that the deal offers certainty only for the duration of the transition period. Owing to the chaos in the Conservative party, is it not the case that all the deal does is move the cliff edge to the end of the transition phase?
No, not at all. The deal would, first, resolve the three critical issues on which the withdrawal agreement focuses: the Northern Ireland-Ireland border; the situation as it relates to EU and UK citizens; and the financial arrangements that we will enter into as we leave the European Union. Critically, it would give us time to put into effect the political declaration, which is the other part of what has been negotiated, until the end of 2020.
(5 years, 9 months ago)
Commons ChamberI would make two points. First, where we will end up with the various files that are the subject of the Bill will, to some degree, be determined by where we end up shortly after or after any no-deal exit. I would imagine that at that point the EU would also wish to be negotiating with us on those measures. Secondly, the files themselves, under the schedule as opposed to clause 1, are being negotiated at the moment. We therefore do not have clarity on the exact form they will take.
The second category of files, as I explained, are those that are still in negotiation. These are files that the UK has, in many cases, played a leading role in shaping, and that could bring significant benefits to UK consumers and businesses. The Bill also allows the Government to domesticate these files, in whole or in part, via affirmative statutory instrument. Given that the UK will not be at the negotiating table when the files are finalised, we will be unable to advocate for the interests of the UK’s financial services sector during those negotiations. The Bill therefore provides the Government with the ability to make adjustments to the files that go beyond the deficiency fixing powers for the agreed files. These powers are clearly defined and proportionate.
I am extremely grateful to the Minister for giving way. As he has outlined, these are powers that would only be used in the event of a no deal. As a Treasury Minister, I would imagine he is probably losing more sleep than most Government Ministers at the prospect of a catastrophic no-deal situation. Will he outline what reporting mechanisms will be introduced by the Treasury for how these powers are used, either by the Treasury or by Treasury-affiliated bodies such as the Bank of England, the Prudential Regulation Authority and the Financial Conduct Authority?
I am pleased to report that the Bill, as amended in the other place, allows for reporting in respect of the statutory instruments on a six-monthly basis—that commitment is in the Bill—and that there will be four periods in total. The first period of six months will commence from the moment the Bill receives Royal Assent. The report will both look backwards at the powers that have been exercised up until that point and forwards to those powers that may be exercised in the coming period. As to other organisations, such as the Bank of England, there will be a requirement for annual reporting on the basis of the measures undertaken by those regulatory organisations.
(5 years, 9 months ago)
General CommitteesI beg to move,
That the Committee has considered the draft Devolved Income Tax Rates (Consequential Amendments) Order 2018.
It is a pleasure to serve under your chairmanship, Mr Gapes. The order makes changes to ensure that Welsh taxpayers obtain certain tax reliefs, or are taxed on certain types of income, at the appropriate Welsh rates once Welsh rates of income tax come into effect. The amendments follow as closely as possible the situation already in place for Scottish taxpayers, providing consistency of treatment of taxpayers across the United Kingdom to the extent that the different devolution settlements allow. The order makes two parallel amendments affecting Scottish taxpayers. These two changes make it certain that Scottish taxpayers will obtain tax reliefs or be taxed at the appropriate Scottish rates.
The amendments are minor and technical and affect a small number of people in a limited set of circumstances. The Wales Act 2014 introduces Welsh rates of income tax, which will be implemented in April 2019 and mean that anyone living in Wales and paying income tax will, from 6 April next year, pay the new Welsh rates. Members of Parliament for Welsh constituencies, Assembly Members and Members of the European Parliament for Wales will also pay Welsh rates, regardless of where they live. The Welsh rates will be set by the National Assembly for Wales and will apply to the non-savings, non-dividend income of Welsh taxpayers. Her Majesty’s Revenue and Customs will continue to collect income tax from Welsh taxpayers as usual.
The introduction of the Welsh rates will have implications for other parts of the income tax system. This instrument makes consequential amendments to those aspects of the income tax regime that are not devolved, to ensure that taxpayers obtain reliefs or are taxed at the appropriate rates.
Anybody reading the explanatory notes will understand that a tax-sharing arrangement between the British Government, Welsh Government and Scottish Government, which is what these measures deal with, is a complicated business. The driver of tax devolution was accountability for the devolved institutions and to incentivise them to develop the economies in Wales and Scotland. If those are the two drivers—accountability and incentivisation—would it not be better to devolve a tax in its entirety than to have a tax-sharing arrangement?
(6 years ago)
Commons ChamberI thank my hon. Friend for that intervention; I always welcome good news from my hon. Friend the Member for Streatham. Yes, it is very welcome that the Government have conceded on this point, reflecting the parliamentary arithmetic. I am not sure that they did it voluntarily, until they saw the names on the Order Paper. Transparency about the consequences of different types of Brexit arrangements has to be a good thing, because the country and all Members of this House should be as well informed as possible. It is extremely pleasing to see the Government concede on this point.
I also pay tribute to the work of the hon. Member for Streatham on this issue. I was happy to support him, as he has led a very valid endeavour that I hope will inform our decision making in the weeks to come.
Will the hon. Member for Stalybridge and Hyde (Jonathan Reynolds) confirm that if these assessments indicate quite clearly that the status quo offers the best economic prospects for every part of the British state, the Labour party will support the status quo as the preferred Brexit option as we approach the next few weeks?
The points I made about transparency are relevant, as every Member of this House will make different assessments. We all know that Brexit is not just an economic concern; political concerns about sovereignty and issues such as immigration form part of the decision that each of us would make. But it has to be a good thing for every part and region of the UK to have the maximum degree of transparency on the economic options available to us. Surely, transparency is the best way forward.
I return to amendment 15, which goes to the heart of what I was trying to articulate—that is, our concerns about the unprecedented power grab that this Government are undertaking. The Government have spent the last two years seizing all manner of tax powers with no regard to the constitutional role of this House. Meanwhile, Ministers have refused to honour any level of transparency, and outline once and for all a clear list of the powers that the Treasury has acquired since the referendum in June 2016 and those it expects to acquire by the time the UK leaves the EU. Amendment 15 would address this and oblige the Chancellor to publish a comprehensive list of the powers the Treasury has acquired and the powers it will then expect to acquire, and to state when we might see those powers returned to the House, where they surely belong.
Amendment 21 would provide a further important element of accountability. This would oblige the Government to deliver a review of the impact of using the powers conferred by clause 89 on tax receipts. This amendment would deliver greater transparency around the true impact of the Brexit deal that the Government have negotiated. It is vital that we have that data available so that we can discuss this in depth and quickly identify if a particular impact has occurred.
In amendment 22, the Opposition are also calling for a review of the Brexit powers being handed to the Treasury. This amendment would require the Chancellor to publish a statement assessing how the powers handed to the Treasury in this Bill would be applied respectively to Great Britain and Northern Ireland. We tabled this amendment because we need urgently to establish whether these powers will cause disparity in the treatment of Northern Ireland in comparison to the rest of the UK. Members may ask why there is urgency on this point, but it is clear from the draft withdrawal agreement that under the so-called backstop arrangement Northern Ireland will maintain a regulatory alignment with the European Union. This is the case in particular in relation to EU customs law, but it also applies to compliance with elements of single market regulation in areas such as the technical regulation of goods, agricultural production, environmental regulation, state aid and other areas of north-south co-operation between Northern Ireland and the Republic. Northern Ireland will also be included in parts of EU VAT and excise regimes and in the EU single electricity market, so Northern Ireland’s compliance with EU rules and regulations will be enforced by the EU Commission and the European Court of Justice.
With this in mind, it is clear that the powers handed to the Treasury by this legislation may not be applicable to Northern Ireland in the legal and regulatory areas under which EU authority remains supreme. We therefore seek a review of where each of the powers being granted to the Treasury can be applied in the event that the Prime Minister’s draft agreement successfully passes. This is clearly a very important amendment, and one which we hope Members of the Democratic Unionist party will also see value in passing. We therefore call on all Members of the House to look carefully at amendment 22 and support it in the Lobby.
Finally, new clause 17 would require the Government to publish a review of the effectiveness of introducing a UK carbon emissions tax in the event of a no-deal Brexit, in terms of helping the UK to meet its carbon emissions targets and carbon reduction commitments. The new clause builds on Labour’s commitment to ensure that 60% of the UK’s energy comes from zero-carbon or renewable sources by 2030.
It is worrying that making provisions for collapsing out of the European emissions trading scheme and all the benefits and economies of scale that it brings is one of the scant mentions of green issues in this Finance Bill. Our exit from the European Union cannot be used as an excuse to take a step back from action on climate change, as was outlined starkly in the report published last month by the Intergovernmental Panel on Climate Change. As I highlighted in my Second Reading speech last week, we are already lagging behind our European counterparts on green finance, as they are forging ahead with sovereign bond funds and mandatory climate disclosure laws. Our new clause would ensure that the Government were held accountable for making progress on reducing emissions, without using Brexit as an excuse to stall.
As I have said, I will definitely read the letter. However, I draw the Minister’s attention to the House of Lords Committee that met, I understand, on 17 November—or possibly not, as that was at the weekend, but very recently—to discuss the Finance Bill 2019. Someone drew my attention to an article by Wendy Bradley, which talks about HMRC’s powers and about power creep. Wendy Brady says that
“it is incumbent on Parliament to determine whether the powers it has given HMRC are sufficient and being exercised correctly”.
That, in my view, is important in relation not just to HMRC, but to the powers of the Treasury and the powers of Ministers. I think it important for Parliament to consider what delegated authority we are handing over, whether to the Minister, to the Treasury, to the Chancellor, or to HMRC directly. As I have said before, the Government do not adequately review these matters, publicise those reviews and repeat them regularly. It is important to have a handle on this, especially now, when so much delegated authority is being given to various institutions. It is important for someone to have an idea of how much power has been taken away from Parliament and ceded to those institutions and for there to be a regular review of whether it is still necessary for it to be in their hands.
Let me now say something about the release of the analysis and the changes that the Minister has said he will make. I praise the hon. Member for Streatham (Chuka Umunna) for his work and his amendment and for creating the real change that we have seen in the Government’s position today. It is important for us to be able to support and trust that analysis—to believe that it is accurate. Mention of the OBR was positive in that regard, because people trust that the OBR is an impartial observer of these matters.
The hon. Member for Ochil and South Perthshire (Luke Graham) initiated a debate in Westminster Hall about the OBR’s remit, and I found it incredibly interesting. I learnt a huge amount about the workings of other organisations around the world. We do not have an organisation that reviews Government policy impartially across the board because the OBR’s remit is so tight, being confined to scrutiny of budgetary matters. I was pleased to support the hon. Gentleman that day. Widening the OBR’s remit would be extremely useful, because, as I have said, people out there trust the OBR to get this right.
A status quo baseline against which all the options should be compared is important, and I am pleased that the Minister referred to it. What was said about whether the analysis will be produced in good time was also important, especially given the lack of time that we had to scrutinise the Bill and the short period during which it was in our hands before we had to talk about it on Second Reading. It was only published on the Wednesday, and then we had to stand up and talk about it on the Monday. Let me say again that if the Government want us to trust, they need to gain that trust, and they must therefore produce legislation in what is actually good time, rather than what they say is good time.
Obviously, everything in the Bill is a prediction. Everything in the Red Book is a prediction for future years. Everything that the Government predict, in terms of their tax take for the changes to entrepreneurs relief or anything else in the Red Book, is a prediction. We have to work on that basis, but we must have the best possible predictions, and, as I have said, they must be looked at by an impartial observer so that we can be absolutely sure that they are as close to accurate—or as close to a best guess—as they can possibly be.
A number of Members have talked about the upcoming votes being the most important votes that we will ever undertake as Members of Parliament. Does the hon. Lady therefore agree that it is vital that the independent assessment should be published in the public domain, so that our constituents can understand the decisions that we are making? We should not have to have one of those Reading Room scenarios, as we did with previous assessments.
I agree. The Reading Room provided for the cross-Whitehall analysis was not fit for purpose, in that I could not go there and mull over the papers in the way that I would normally do. Generally, if I am presented with a Finance Bill, for example, I will sit at home and read it. That is what I like to do on a Saturday night. I will sit at home and read these things. We have to be able to access any analysis that is published in a way that suits us, and releasing it publicly would be the best possible way to do this. Another reason for doing that is that the external stakeholders could provide their comments in the best possible way, so I entirely support the hon. Gentleman’s suggestion.
New clause 11 asks for a report on the consultations that have, or have not, been carried out in relation to the tax measures. As I said on Second Reading, not enough of the tax measures in the Bill were consulted on this year. I understand that there were more such consultations in previous years. If we do not want the Government to have to row back next year because they have screwed something up as a result of inadequate consultation, it will be important for these tax measures to be published and consulted on and for us to get the expert advice that we need from the stakeholders.
Clause 90 is just bizarre. I read it, and then I had to go back and read it again because I could not believe that a clause would give the Government the power to spend whatever they liked. It does not cap the spend on the emissions reduction trading scheme’s preparatory expenditure. I was genuinely confused about how the Government could propose that. The clause will give the Government carte blanche. Our amendment 9 and our new clause 10 ask for a Commons resolution and an expenditure review before that expenditure can take place. We think it reasonable—and I am sure the general public would think it reasonable—that if the Government want to spend money on something, they should tell us how much they intend to spend.
The Government are spending money to stand still. This is a cost, and the Government have to spend the money for things to be exactly the same after Brexit as they are today. It is a cost that we would not have if we were not leaving the European Union. The Minister talked about the estimates process. I am pleased that he is as interested and excited by the estimates process as I am. I talk on the estimates whenever I possibly can. There are two parts to the estimates process: one in February and the other in July. I am not sure whether this money counts as in-year spend or as part of next year’s spend. We might be able to discuss it in February, which would be great, because at least that would be before we leave the EU. However, if it is classed as next year’s expenditure, we might not be able to discuss it until July, by which point the money will have been spent.
(6 years ago)
Commons ChamberAs the hon. Gentleman will know, we have made, within this year, more finance available to various Departments, and the Chancellor was very clear about that in the Budget. He was equally clear that there will be a number of decisions to be made in the spending review next year relating to all the Departments across Government.
I am sorry to burst the Minister’s balloon, but if things are as rosy as he says, why is the UK economy not only at the bottom of the G7 for growth forecasts, but at the bottom of all EU countries for projected growth?
(6 years, 4 months ago)
Commons ChamberUrgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
Each Urgent Question requires a Government Minister to give a response on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
The hon. Lady will understand that we are conducting a review of further and higher education, and that is among the issues that we will be looking at.
Teachers’ pay is not devolved to Wales until September 2019, so can the Chief Secretary confirm that the British Government will make the appropriate transfers to Welsh local education authorities to pay for the increase?
I understand from my colleagues in the Department for Education that this will also apply to Wales.
(6 years, 4 months ago)
Commons ChamberI appreciate that my hon. Friend has been campaigning for such things since before his election. We have provided £35 million for the Oxford Science Transit scheme, which will enhance the A40 between Oxford and Witney. As for the A40 more generally, the Government are providing £150 million through the Oxfordshire housing deal, which he could tap into to see further improvements on that road.
I thank my right hon. Friend for his very relevant and, may I say, predictable question—he has been a doughty campaigner on this particular issue—but all I would say to him is that we will of course be looking at taxation, with everybody in their different ways paying a little bit more, to make sure that we fund the significant amount we have now committed to our national health service.
Rail electrification and the Swansea Bay tidal lagoon have both been scrapped by the British Government because they were not deemed good value for money. When it comes to designing the criteria for the proposed UK shared prosperity fund, will an immediate return on investment be the priority, as with every project scrapped in Wales?
We are looking closely at the shared prosperity fund to make sure that it delivers best value for money right across the UK, and I am in discussions with the Welsh Secretary about that.