Student Tuition Fees and Maintenance Loans

Debate between Lord Bates and Lord Christopher

Tuesday 18th December 2018 Lords Chamber

[Lord Bates]

The review will continue. Its terms of reference were set out by the Prime Minister in February, and they remain that inquiry’s terms of reference. To that extent, this is a separate issue. These factors might be taken into consideration in the wider debate on the shape of post-18 education. It is perfectly possible to do that.

[Lord Christopher (Lab)]

My Lords, where loans are bundled and sold off, does that exclude the possibility of any of them being written off?

--- Later in debate ---

[Lord Bates]

It does not make any change to the programme of student loan sales, which will continue as has been set out in the Budget.

[Lord Christopher]

My Lords, I do not understand that. The loans are sold off and the buyer expects to make a profit. He is not going to make a profit if he then finds that some of the assets are now withdrawn.

[Lord Bates]

Perhaps I misunderstood the question—I do apologise. I thought the noble Lord had asked what the effect was on the programme of sales of student loans—to which the answer is that there is no change. He is asking a different question: what about loans that have already been sold and will there be an effect? Of course, for those loans the value of the assets will be a matter for the institutions and organisations that have purchased the loans to account for in the correct way on their balance sheets. If that is still not the correct answer, I will be very happy to meet the noble Lord and write to him to clarify.

VAT: Evasion

Debate between Lord Bates and Lord Christopher

Monday 20th November 2017 Lords Chamber

[Lord Bates]

I think that the particular case the noble Lord refers to is about how some employees of the BBC are remunerated using taxation. There is a standard briefing in my pack here, which says that I cannot refer to specific individuals and their taxation status. However, suffice it to say that, thanks to the BBC, we are all now aware of them— including HMRC.

[Lord Christopher (Lab)]

My Lords, I declare some of my past life, which is in the register and which should be taken note of. There is no prospect whatever of the Inland Revenue getting on top of the range of activities which you now require without more staff— not just in numbers but in quality, experience and knowledge, and a capacity for doing forensic work. Will the Government undertake a review of what is required?

[Lord Bates]

Since 2010—this is absolutely right—the Government have invested £1.8 billion in trying to tackle avoidance. However, it is clear that, as well as looking at the headcount issue, we should also look at the additional revenues that are generated. In that regard, HMRC has a very positive story to tell. However, we need to be smarter and use more technology to ensure that all people who have a liability to pay UK tax, in whatever form, do so.