National Insurance Contributions Holiday

Debate between Lord Anderson of Swansea and Lord Bates

Wednesday 27th March 2019 Lords Chamber

[Lord Bates]

The noble Baroness will recall that, when we were in coalition Government, we introduced the employment allowance, which effectively said that the first £3,000 of national insurance contributions for small businesses did not apply. We have also abolished national insurance for those on apprenticeships under the age of 25 and abolished national insurance for those under the age of 21. We are doing a significant amount in this area, but I accept that we need to do more.

[Lord Anderson of Swansea (Lab)]

Americans have a saying that a platform is something to run on and not to stand on. Is that not relevant to this manifesto commitment?

[Lord Bates]

We are running very hard on this agenda. I mentioned the 713,000 more people in work, and I would have thought that that would be welcomed on all sides of this House.

Syria

Debate between Lord Anderson of Swansea and Lord Bates

Wednesday 5th December 2018 Lords Chamber

[Lord Bates]

Certainly I recognise the figures that the noble Baroness outlined about the damage to infrastructure, which were set out in the World Bank’s Toll of War report. I can also confirm that British taxpayers have contributed some £2.71 billion since 2012, making us the second-largest contributor—and this our largest response to any humanitarian situation. When funding goes into a conflict situation, there is a well-established protocol that extra layers of due diligence and tests are needed. If that is not the case, funding to provide humanitarian aid could be diverted into perpetuating the very conflict that we are seeking to resolve. That is the reason that the restrictions and tests are so strict, but we continue to keep the discussions under review and will hopefully work with respected partners in the future.

[Lord Anderson of Swansea (Lab)]

My Lords, estimates of the costs of reconstruction range from $250 billion and $1 trillion. As Russia is responsible for much of the damage, directly and indirectly, has there been any indication at all that it is prepared to pay its share of the costs of reconstruction?

[Lord Bates]

There has not been any indication of that and, of course, the conflict is ongoing. It is vital that all parties to the conflict bring their efforts to bear to stop the ongoing suffering. We believe that, while the suffering and conflict continue, there cannot be a meaningful discussion about how to begin the reconstruction, because that requires a Government we can deal with, and we do not have one at the moment.

United Nations Relief and Works Agency

Debate between Lord Anderson of Swansea and Lord Bates

Monday 19th November 2018 Lords Chamber

[Lord Bates]

We and UNRWA take all those concerns extremely seriously. When issues such as the content of school textbooks have been raised, they have been thoroughly investigated. When the principles of non-violence that the Palestinian Authority signed up to are questioned, that ought to be raised with UNRWA. Ultimately, the only way forward in the long term is for all parties to come together and begin a peace process that can resolve the refugee situation and territorial claims.

[Lord Anderson of Swansea (Lab)]

My Lords, there are many legitimate concerns about UNRWA. Since there is a funding gap, is there evidence that other countries will follow our example, such as our partners in Europe and the Arab countries in particular?

[Lord Bates]

As the noble Lord will know, we are one of the largest funders. The UN General Assembly margin meeting that I mentioned raised $122 million, some of which is yet to hit UNRWA’s bank account. It is important that people honour their pledges. It is also important for other countries to step forward and support UNRWA, not only on its financial needs but through wider support for moving towards a Middle East peace process.

Debt Advice Services

Debate between Lord Anderson of Swansea and Lord Bates

Thursday 6th September 2018 Lords Chamber

[Lord Bates]

We are taking some steps on that. The Financial Guidance and Claims Act, which my noble friend Lord Young took through this House, introduced the single financial guidance body. We stress that we are increasing the funding that goes into making financial advice available to people to prevent them getting into debt. We have taken action against illegal money lending by imposing a levy on the consumer credit industry; it must fund the illegal lending teams that clamp down on loan sharks. A lot needs to be done, but we need constant vigilance in this area because of the problems that we have seen arise in the past.

[Lord Anderson of Swansea (Lab)]

The Minister spoke of the increased support from public funds for debt counselling agencies. Is he satisfied with the contribution from those companies that press individuals and vulnerable households to take out more debt?

[Lord Bates]

They are of course regulated through the Financial Conduct Authority, which is one reason why a review into high-cost credit is currently under way, looking particularly at the rent-to-buy model, which I know is of particular concern to many people. It recognises that that is an important element of it, and we are taking action on that.

Paradise Papers

Debate between Lord Anderson of Swansea and Lord Bates

Thursday 14th December 2017 Lords Chamber

[Lord Anderson of Swansea (Lab)]

My Lords, I beg leave to ask the Question standing in my name on the Order Paper, and have no interest to declare.

[The Minister of State, Department for International Development (Lord Bates) (Con)]

Very good. My Lords, HMRC takes allegations of non-compliance on tax seriously regardless of where it takes place in the world. HMRC is looking closely at all the information the ICIJ has publicly released in the Paradise papers to see whether they reveal anything new that could add to its existing leads and investigations.

--- Later in debate ---

[Lord Anderson of Swansea]

My Lords, the Government may be looking closely, but they have been looking closely at this issue for a long time with very limited action. When will the Government accept that there is deep anger among taxpayers in this country about the revelations that the rich and powerful are able to get away with aggressive tax avoidance, and that transparency is the best antidote? Will they give a fixed date by which the overseas territories and Crown dependencies will have to open a public register of the beneficial ownership within their jurisdictions?

[Lord Bates]

The noble Lord is right that we have been looking at this for a long time, but we have also been acting for a long time. Since 2010, we have introduced almost 100 measures that have raised £160 billion in tax revenue. That is more than the combined health budget for England, Wales, Northern Ireland and Scotland. We have one of the lowest tax gaps in the world—certainly the lowest on record in this country. We have been working very hard and taking this very seriously and will continue to do so.

As regards the overseas territories and Crown dependencies, again, this has been taken very seriously. Just two weeks ago at the joint ministerial council, the Prime Minister stressed the importance of this. We already have central registers in four of those authorities, including the Cayman Islands, Bermuda and Gibraltar. Montserrat and Anguilla will have registers by April of next year. The Turks and Caicos Islands have been particularly affected by the hurricane, so they have been given a little extra time, but we are very clear that action needs to be taken.

Brexit: Costs

Debate between Lord Anderson of Swansea and Lord Bates

Wednesday 29th November 2017 Lords Chamber

[Lord Bates]

My noble friend tempts me a little further than we are aware at present. The negotiations are happening in a complex situation—it is fast-moving and changing—but our team is out there trying to secure the best deal for the British taxpayer, which I am sure it will.

[Lord Anderson of Swansea (Lab)]

On careful reflection, does the Minister agree that the point made by the Foreign Secretary that the EU will have to “whistle for it” was just bluster and wholly unhelpful?

[Lord Bates]

This negotiation is going on across a whole range of headings and there have been remarks on both sides. The key ambition is that set out by the Prime Minister in her Florence speech, where she set out a rational, well-argued and clear vision for our exiting in a way that honours our obligations but also prepares a new relationship of economic partnership with our European friends.

VAT: Evasion

Debate between Lord Anderson of Swansea and Lord Bates

Monday 20th November 2017 Lords Chamber

[Lord Bates]

First, I pay tribute to my noble friend for being a consistent campaigner on this issue, which has brought about significant change. We introduced the change where there is joint and several liability. The problem here is that non-EU importers are bringing in goods to the UK at wholesale prices, storing them here, selling them on at retail prices and not paying the VAT, thereby undercutting small businesses. We responded to that by introducing joint and several liability for online providers. That has meant that the number of non-EU traders registered in the UK has gone up from 700 to 17,500 just over the past two years—so we believe that we are making progress, but there is a lot more to do and we have further ideas in that area.

[Lord Anderson of Swansea (Lab)]

My Lords, before the revelations of the Paradise papers, was Her Majesty’s Revenue and Customs aware of the device involving the Isle of Man used by a famous racing driver? If so, why was nothing done about it? If HMRC was not aware of it, will it now close that loophole?

[Lord Bates]

VAT is a matter for the Isle of Man to deal with, but we have said that we are aware that there is a potentially significant problem here. Her Majesty’s Treasury has been approached by the Isle of Man Government and asked to provide technical advice on how to assess and close that loophole. We hope that will be a way of moving forward to ensure that everybody pays the taxes that are due.

Barnett Formula

Debate between Lord Anderson of Swansea and Lord Bates

Thursday 13th July 2017 Lords Chamber

[Lord Anderson of Swansea (Lab)]

What advice will the Minister give us? What do we in Wales have to do to get an extra £1 billion? It would be extremely helpful to have that advice. For example, on the Swansea Bay lagoon, investors now say they are becoming wary of keeping their money on hold. Are the Government capable of making a decision?

[Lord Bates]

We are certainly always open. That is why we spend £120 in Wales for every £100 that we spend in England. We continue to be committed to that. It is why we increased the overall capital borrowing limit to £1 billion from £500 million, and we continue to look for opportunities to grow the economy in Wales, both within and outside the Barnett formula.