Loan Charge

Debate between Lindsay Hoyle and Justin Madders

Thursday 4th April 2019 Commons Chamber

[Mr Deputy Speaker (Sir Lindsay Hoyle)]

Some might say that there is a leaky Parliament at the moment, so we will take it from there.

[Justin Madders]

I am sure that many Cabinet meetings have similar difficulties.

My constituent tells me that, having submitted his tax returns each year when he was working, they have never been queried. He states that, by doing that, HMRC has at the very least implicitly, if not explicitly, accepted that any moneys that he received in the form of a loan were just that. However, it is the retrospective nature and long reach of the loan charge that is so hard for him to accept. I understand that it has been claimed that HMRC has always said that these arrangements were unacceptable, but I have not seen anything prior to 2016 to suggest that that was the case.

When the Minister responds, can he say whether in future I should advise my constituents that they should no longer consider HMRC responses to tax returns to be final, that they can be reopened at any point and that any schemes registered with HMRC can be overturned decades in future? Can he also advise me whether any companies that made loans will be pursued for employer national insurance contributions? What if the company is no longer trading? Will the employees’ national insurance records be updated?

I also want to say a few words about the human cost of all this. HMRC has admitted in response to freedom of information requests that no assessment was made of the likely number of taxpayer bankruptcies that will result from this charge, yet the official HMRC statement—[Interruption.]

[Mr Deputy Speaker]

Order. No photographs.

[Mr Deputy Speaker]

You were holding your phone up.

[Justin Madders]

I will carry on.

The HMRC statement says:

“The government anticipates that some of these individuals will become insolvent as a result.”

It also says that the measure

“is not expected to have a material impact on family formation, stability or breakdown.”

I find that statement unbelievable on two counts. First, it is unbelievable how little understanding or empathy there is for those facing bankruptcy. Anyone who has spent more than five minutes in the real world will know that individual insolvency has a massive impact on families. My other huge reservation about that statement is that it appears to say that no assessment has been made of the number of bankruptcies, yet it claims that there will be “some” insolvencies. If people have to be made bankrupt, I think we are all clear that something has gone terribly wrong.

Finally—and before we get the paddles out—I would like to ask the Government to think about what kind of message this whole mess is sending out to entrepreneurs, the people the Conservative party used to consider the bedrock of its support. Under this Government, those people are being left with the distinct impression that HMRC is prioritising the recovery of tax revenue over justice by targeting individuals rather than the promoters of the schemes, many of whom still enjoy generous contracts with Government. They knew what they were doing but appear to have accepted no responsibility for their actions and faced no consequences. The suggestion that some public sector employers were insisting that the people paying the price now would only be employed if they agreed to accept the kind of contract that HMRC is now declaring unlawful is an outrage.

Healthcare (International Arrangements) Bill

Debate between Lindsay Hoyle and Justin Madders

3rd reading: House of Commons & Report stage: House of Commons
Monday 21st January 2019 Commons Chamber

[Justin Madders (Ellesmere Port and Neston) (Lab)]

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

[Mr Deputy Speaker (Sir Lindsay Hoyle)]

With this it will be convenient to discuss amendment 1, in clause 5, page 3, line 44, leave out subsections (5) and (6) and insert—

‘(5) Any statutory instrument which contains regulations issued under this Act may not be made unless a draft of the instrument has been laid before Parliament and approved by a resolution of each House.”

This amendment would make all regulations issued under this Act subject to the affirmative procedure and require approval from Parliament before they become law.

[Justin Madders]

We want to ensure that there are appropriate safeguards with regard to costs, not least because the Bill currently gives the Secretary of State authority not only to facilitate a continuation of existing arrangements, but to enter into any number of bilateral agreements with individual member states, with very little opportunity for parliamentary scrutiny. It also provides the authority to strengthen existing reciprocal healthcare agreements with countries outside the EU, or to implement new ones across the globe, in line with the Government’s aspiration to develop trading arrangements with countries beyond the EU. There is therefore a potential for the establishment of multiple complex agreements.

New clause 1 addresses the important point that the Bill before us is rightly intended to provide for all reciprocal healthcare arrangements in the future, and to provide for all eventualities. As we know, a no-deal Brexit could lead to a multitude of new bilateral agreements within the EU27, let alone the rest of the world. At this stage, none of us can be clear about how many of those agreements will come into being. We cannot assess their likely cost or impact, and, indeed, the Government’s own impact assessment is inadequate in that regard. It suggests that the cost will be similar to, or lower than, the current £630 million per year.

Business of the House

Debate between Lindsay Hoyle and Justin Madders

Thursday 2nd November 2017 Commons Chamber

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

Let us hear from the north-west champion, Justin Madders.

[Justin Madders (Ellesmere Port and Neston) (Lab)]

Saving the best till last, as always, Mr Deputy Speaker.

[Mr Deputy Speaker]

At least you now know where you need to be.

[Justin Madders]

Indeed.

A number of planning applications for fracking have recently been submitted in my constituency, causing much consternation locally. That has not been helped by a local political group arguing that councils should determine those applications by way of a local referendum. As the Leader of the House knows, that would be a deeply irresponsible move. Not only would such a decision not be effective, but it could leave a council open to a costly legal challenge. May we have a debate on the precise discretion that is available to councils to consider such controversial planning applications?