Economic Update

Debate between Lord Agnew of Oulton and Earl of Clancarty

Tuesday 12th January 2021 Lords Chamber

[Lord Agnew of Oulton (Con) [V]]

My Lords, the Government are acutely aware of the challenging circumstances aviation is facing. The sector is able to draw on the unprecedented package of measures announced by the Chancellor, including schemes to raise capital, flexibilities with tax bills and the furlough scheme. The Government have committed to consult on aviation tax reform and will provide an update on the timing of this in due course.

[The Earl of Clancarty (CB)]

My Lords, in answer to a question I asked last week in this House, I was told that the Government were looking at whether the guidance in the Culture Recovery Fund might be changed to enable freelancers to benefit directly, as many freelancers have so far received no support at all. Can the Minister say anything more about this?

[Lord Agnew of Oulton (Con) [V]]

My Lords, I do not have an update on the response that the noble Earl received last week, but we will of course notify the House as soon as any is issued.

Wales: Customs Sites

Debate between Lord Agnew of Oulton and Earl of Clancarty

Wednesday 25th November 2020 Lords Chamber

[Lord Agnew of Oulton (Con)]

I can reassure the noble Lord that we have been working on this solution for some time. There was an alternative proposal several months ago that most people were in favour of, which was RAF Mona, but unfortunately that was not acceptable to the local community. But, no, we have not just started work on this this week. In terms of the inland sites, to reassure the noble Lord, not every lorry has to go to them. About 2% of loads will be diverted for formal checks. So, although I accept that in the interim, before the enduring site is created on the island, there will be some inconvenience, it will be only for a very small number of loads.

[The Earl of Clancarty (CB)]

My Lords, following on from the question asked by the noble Lord, Lord Wigley, concerns were raised this month about the readiness of IT systems, including the Customs Declaration Service, in oral evidence to the EU Select Committee’s EU Goods Sub-Committee. Is it the case that key personnel for developing the CDS are still being recruited? Does the Minister agree that, the rest of the UK aside, the particular problems facing Wales will be compounded if IT systems are not ready on time?

[Lord Agnew of Oulton (Con)]

My Lords, the CDS is the system that is being rolled out specifically for Northern Ireland from 1 January, because that is the one that enables a dual-tariff mechanism. The development is well under way. We have one or two more upgrades to make to it, with the last one on 21 December. I am not going to pretend that that is not tight, but the development is moving at pace, and the most recent upgrade enabled the dual-tariff operating model to work. The CSPs—the community service providers that provide the link into the CDS for traders and hauliers—are working at pace. The main one, the Trader Support Service, is working at particular pace, and I am confident that the system will be connected by the due date.

Economy

Debate between Lord Agnew of Oulton and Earl of Clancarty

Monday 28th September 2020 Lords Chamber

[Lord Agnew of Oulton (Con)]

My Lords, I think that we have published our worst-case scenarios for a no-deal Brexit or leaving the European Union without a free trade agreement. Of course there are risks, but we remain optimistic that a deal will be done.

[The Earl of Clancarty (CB)]

My Lords, “viable” is a dangerous word if all that can be said to be truly viable financially in these unusual times is a prescribed number of businesses, including those making money out of Covid. How do the Government intend to further protect the self-employed—including those working in the creative industries, who will fall off the edge of the cliff at the end of October if the Self-Employment Income Support Scheme is not extended—because the job support scheme is clearly not nearly enough? That includes freelancers, who make up 70% of the workforce in the performing arts, which are so important to this country both culturally and financially in the longer term, as the noble Baroness, Lady Kramer, pointed out.

[Lord Agnew of Oulton (Con)]

I share the noble Earl’s concern about the creative sector. I am sure that he is aware of the support being given under the latest SEISS grant extension, which of course will be available to those who were previously in it. But I do accept that we face difficult times.

Economy: Update

Debate between Lord Agnew of Oulton and Earl of Clancarty

Tuesday 28th April 2020 Lords Chamber

[Lord Agnew of Oulton]

I thank my noble friend for his question and I will certainly take it back to the Treasury. It is worth remembering that the combination of the EIS, SEIS and VC schemes are pretty generous for investors, with the tax reliefs that they get. I suspect that, as an experienced investor, my noble friend Lord Flight will know that valuations will fall pretty dramatically for businesses looking for funding if they are early stage. Therefore, there will be a lot of opportunities for the entrepreneurial investor over the next few months. None the less, I will certainly take my noble friend’s suggestions back for further consideration.

[The Earl of Clancarty (CB)]

My Lords, the Chartered Institute of Personnel and Development says that the lack of support for limited companies in the self-employed income support schemes is

“not just a crack: it is a gaping hole in the package.”

It is accepted practice for freelancers to pay themselves through dividends, contrary to what the Minister says. This applies to a wide range of workers, from musicians to builders to cleaners, whose work is particularly important at present. Like the noble Baroness, Lady Kramer, I ask the Government to take another look at this.

[Lord Agnew of Oulton]

I thank the noble Earl for his point; we discussed this in a Question last week. I know that in the Chancellor’s response yesterday, he said that he had been in touch with some of the groups that the noble Earl mentioned—I think he mentioned the Musicians’ Union, and so on. I am not saying that to take income by dividend is wrong; as I said last week, a dividend is defined as a surplus of profit of a business after all its operating costs have been paid, and the tax is paid and retained profits kept for reinvestment. That is my point. But what has happened in the week between our conversation and today is that bounce-back loans are now available, and that is probably the route for those people whom the noble Earl is particularly worried about.

Covid-19: Self-employed

Debate between Lord Agnew of Oulton and Earl of Clancarty

Thursday 23rd April 2020 Lords Chamber

[The Minister of State, Cabinet Office and the Treasury (Lord Agnew of Oulton) (Con)]

My Lords, the Government have taken a number of steps to support the self-employed at this difficult time. On 26 March, the Chancellor announced the self-employed income support scheme, which will provide eligible individuals with a grant worth 80% of their normal profits for three months. The Chancellor has also announced several other policies that might benefit the self-employed. These include the coronavirus business interruption loan scheme, mortgage holidays and an income tax deferral.

[The Earl of Clancarty (CB)]

My Lords, this is necessary support but there remain concerns about fairness and people falling through the cracks. Will the Government look again at the £50,000 cap—a distinct unfairness compared with the JRS? Will they review the income threshold, which at 50% excludes many for whom a mixed portfolio is the norm? Can graduates and those who have been on maternity or sick leave have unrepresentative years discounted? Does the Minister agree that, from construction workers to music teachers, those paid through dividends should not be penalised for adopting a standard accounting system actively encouraged by Conservative Governments?

[Lord Agnew of Oulton]

My Lords, delivering a scheme for the self-employed is a difficult operational challenge, particularly in the rapid timescale required. The Government’s priority is to get support to those who need it as quickly as possible, in the fairest way. The design of the scheme, including the £50,000 threshold, means that it is targeted at those who need it most, and who are most reliant on their self-employment income. Some 95% of those who are mostly self-employed will benefit; those who do not meet the eligibility criteria for the SEISS may have access to a range of other support, including the more generous universal credit and deferral of tax schemes. I hope to address the dividend points in answer to a separate question.

European Union (Withdrawal Agreement) Bill

Debate between Lord Agnew of Oulton and Earl of Clancarty

Committee: 3rd sitting (Hansard continued) & Committee stage & Committee: 3rd sitting (Hansard continued): House of Lords
Thursday 16th January 2020 Lords Chamber

[Lord Agnew of Oulton]

I can answer that. The point is that nearly every Peer who joined the debate on this amendment was mourning the leaving of Europe. Many of them just said, “We are very sad to be leaving the EU”, but we have got to get beyond that. In two weeks’ time, we are going to be an outward-facing country looking to the rest of the world. The reason that I mentioned Chevening—I put it into the speech, not officials—is because I had direct experience of it recently. I was sent to the OECD conference on education in Argentina about 18 months’ ago. I met the Education Minister, and it is those sorts of contacts which will help the future of this country. I accept that Chevening is a master’s degree programme and that it is for high-potential future leaders, but it is about the connection between institutions in our country and other countries.

[The Earl of Clancarty]

The point I made in my speech was that Erasmus does not preclude these arrangements. My nephew was at Swansea University, which had an exchange with Arizona that had nothing to do with Erasmus. Losing Erasmus means that students would lose choices overall; that is the point.

[Lord Agnew of Oulton]

The reassurance that I can give the noble Earl is that we support the value of Erasmus. We are not signalling that we are going to come out of the next version of it, but we cannot offer a blank cheque on a scheme that has yet to be agreed. It will be part of the far wider withdrawal agreements that we foster with the EU over the next 12 months.