Tax Credits

Debate between Lord Field of Birkenhead and Andrew Percy

Thursday 29th October 2015 Commons Chamber

[Frank Field]

There are two benefits—child tax credit and child benefit. The Prime Minister seems to misunderstand the difference between the two, because he said during the election that child tax credits would not be touched, but given that under this formula we are changing the clawback—or, as my hon. Friend the Member for Nottingham North (Mr Allen) would say, the amount of money people lose—by changing the threshold at which people begin to take back tax credits, and the rate at which tax credit income changes, we are affecting the value of child tax credit. There are questions about the sense of having two benefits serving the same purpose.

My second proposal is one that I guess many Tory MPs have made privately to the Government. I cannot imagine that Government Whips are different from Opposition Whips. If we had been in government making this proposal, our Whips would have been very busy last weekend phoning hon. Members to ask what they would tolerate as a minimum for reform. I would have thought that one very clear message coming back would be that bringing in these reforms next April is not acceptable

The third and more radical proposal, which again unites Back Benchers on both sides of the House, is that the changes to tax credits should apply only to new claimants. One of the problems of our popularity in shovelling around taxpayers’ money without realising that the music might stop some day and people might think the bill was not actually affordable is that in the meantime our constituents have responded to the very clear messages—in the form of incentives in the tax credits system—about what we wish them to do. In talking both publicly and privately with Conservative Members and certainly with Labour Members, I have noticed a sense that it is one thing to say there is a new contract for people who are not claiming tax credits now, but it is a totally different ball game to say to the others, “You’ve responded and you’ve done all we expected you to do, but, by Jove, we are going to clobber you now for doing so.”

[Andrew Percy (Brigg and Goole) (Con)]

I will make two points. The right hon. Gentleman is absolutely correct that for people in the system who have changed their behaviour—in terms of the vehicle they have bought, or the house they have chosen to buy or rent—we cannot change the rules afterwards and hit the poorest hardest, as the changes would.

I also want to put it on the record that I have made my view perfectly clear—certainly to Conservative Members—that the changes cannot go ahead next April and that any mitigation should be full mitigation. Mitigation must protect the poorest households, of which, owing to our low median salary, we have an awful lot in east Yorkshire.

[Frank Field]

I am grateful to the hon. Gentleman for his intervention.

Home Affairs

Debate between Lord Field of Birkenhead and Andrew Percy

Tuesday 10th June 2014 Commons Chamber

[Andrew Percy]

Absolutely. Because I had criticised the uncontrolled nature of immigration into my own town, when I was dragged to the meeting with various agencies, I was told that the things I had said were unacceptable. Needless to say, that meeting did not last very long or end very well when I robustly thanked the people for coming from their lovely villages in the richest parts of the East Riding of Yorkshire, where they do not have to live with large amounts of uncontrolled immigration. I thanked them for sharing their views, but the hon. Gentleman is absolutely right that when people raise legitimate concerns, they are patronised and spoken down to by people who, all too often, do not live in these communities.

[Mr Frank Field]

Were any of the people who came to the meeting, other than the hon. Gentleman himself, elected?

[Andrew Percy]

Absolutely none of them were elected; the right hon. Gentleman makes a good point.

I would like to conclude on two small points. The second issue that I hope the Home Office will address, and about which it can do something practical, is foreign-registered vehicles, which feed into people’s perception of unfairness. I asked a couple of parliamentary questions in the previous Session about foreign-registered vehicles overstaying the six-month limit, and found that on one occasion there had been four prosecutions in the whole of the United Kingdom for vehicles staying beyond the period permitted. When I asked a similar question on another occasion in the previous Session, I believe that precisely zero vehicles had been prosecuted.

The issue is one of vehicles not being recorded when they arrive at the United Kingdom border, or when they leave. People in my town see the same vehicles and report them to my office, and we report them to the police. They see vehicles that have been here a year, possibly even two, that are still in our town and are not registered, paying tax or subject to UK insurance. The Government must take a lead on this issue. The only way to solve it is through better control at the border.

Finally, I want to discuss prisons, although I am perhaps stretching a debate on home affairs, given the Ministers present. I recently visited HMP Lindholme in Doncaster on the edge of my constituency. I was staggered when the governor told me about the problem there with mobile telephones and how much crime is being directed from inside the prison. Something must be done about that. We were told that for about 1,300 prisoners they had recorded 600 or 700 mobile phone signals coming from inside the prison. The blockers are not in place, although the technology is catching up.

The Government could take a strong lead on something that the governor and her team raised with me: when they identify the contracts of the phones being used inside the prison, the mobile phone operators are not very keen to terminate the numbers. That could be achieved relatively simply, so I hope that Ministers will look at that and seek to take a lead on it. It seems to me, as it would to my constituents, incomprehensible that people can direct criminal operations from behind bars. Something really must be done about that.

Having danced around some issues that are important to my constituents, I will leave it there and look forward to the Minister’s response.

Immigration

Debate between Lord Field of Birkenhead and Andrew Percy

Thursday 6th September 2012 Commons Chamber

[Mr Field]

I am grateful for the hon. Gentleman’s introductory remark, but I gave way because I do not have such a carefully crafted speech as my right hon. Friend the Member for Mid Sussex had. If the hon. Gentleman can bear with me until I reach the end of my contribution, he will know what steps I would like the Government to take.

I want to raise three issues and to pose three questions for the Government, first on the Olympics, secondly on the mountain we must climb, and thirdly on the action that the Government need to take if they are to fulfil a pledge that is supported not merely by Conservative voters, but by Labour voters.

[Andrew Percy (Brigg and Goole) (Con)]

Will the right hon. Gentleman give way?

[Mr Field]

No—not for a moment anyway.

First, on the Olympics, I am probably the last person to confess that I was disappointed when the announcement that we had won the Olympics was made. I feared that we would not perform well in organising the games, and that they were an opportunity for a terrorist outrage that would indelibly mark our country in the eyes of the world. I am pleased to accept that I was wrong on both counts.

I am also delighted that another success was not only our tally of medals, but the fact that people who won them had come to this country with their families to make a new life. They were so committed to us that they wanted not only to participate, but to win for this country. How does the Immigration Minister interpret those events? So many people come here and are so committed, and yet at the same time some second generation people harbour such terrible thoughts in their hearts about us that, as far as we know, they want to take terrible action against us. How can part of immigration be so successful, and part of it result in those thoughts? That is my first question.

--- Later in debate ---

[Mr Field]

I shall finish this point and then give way.

What will happen if we do not meet the objective? Our constituents, whose wages will probably be falling, will be able to buy far less than hitherto with their wage packets. That is the urgency.

[Andrew Percy]

I associate myself very much with the right hon. Gentleman’s words. Does he believe that part of the mountain we must climb is opening up the issue of EU immigration, which is completely uncontrollable? There have been massive amounts of such immigration to my constituency, particularly in Goole, which is having a big impact on schooling, health, employment and housing. It is a fallacy for any hon. Member to suggest that we have controlled immigration or could ever have it if we leave EU immigration unaddressed.

[Mr Field]

The hon. Gentleman makes a point with which many hon. Members will sympathise. During the recession, which will clearly last longer than any since the war, the Government ought to think about what temporary measures they should take to ensure that the country’s labour market is protected for those who, until recently, were working, and for others coming to the labour market who wish to work.

Finance Bill

Debate between Lord Field of Birkenhead and Andrew Percy

Tuesday 3rd July 2012 Commons Chamber

[Mr Field]

I am grateful for the intervention. Unfortunately I cannot give an answer, but I will redirect the question to the Minister. This time, I hope that he will give us an answer and—I hope even more—say that the Government intend to take action.

[Andrew Percy]

It is a pleasure to follow the right hon. Member for Birkenhead (Mr Field), who made an interesting contribution, on an issue that I was not planning to speak about, but which I hope will be pursued if his new clause is not accepted this evening.

This has been an interesting debate. I am only sorry that the Minister’s attempt to take us through every VAT change since 1973 was cut somewhat short. We got to about 1983, which was probably as far as most of us needed to get, but it was interesting none the less. The debate has also been interesting because of the number of food products that have been mentioned. At one point, when we were talking about rotisserie chickens, pasties and sausage rolls, I thought it was lunchtime at the Percy house, but apparently not. I am proud to say that I eat pasties: I ate my last one from Fuller’s bakery on the precinct in Goole just the other day. I cannot say that I partake of sports drinks, so I will not take much of an interest in that part of the debate, but I am certainly pleased that the Government have seen sense on pasties. I am not sure that I necessarily share the full analysis offered by my hon. Friend the Member for Truro and Falmouth (Sarah Newton) about the seamless transition of policy. I do not think it has necessarily been the Government’s finest hour, but at least at the end of the process we have a system with which we can all live.

I want to make a few brief comments about the caravan tax. It is a pleasure to see my hon. Friend the Member for Beverley and Holderness (Mr Stuart), who assisted with—[Interruption]—sorry, who led the campaign. I chide him with an in-joke. He led the campaign very ably and got us all together. He deserves credit for that, and I am pleased to see him here for this debate. The impact that the measure would have had is well documented in the various debates we have had. The Minister knows from the meetings we had with him that we were very concerned, particularly in our part of the world, where the vast majority of the relevant manufacturing is and where a lot of the supply chain is based, including, in my constituency in Brigg, a number of companies that were affected. I also have some of the parks that would have been affected in my constituency. I am pleased to see my hon. Friend the Member for Cleethorpes (Martin Vickers), who would have similarly been greatly affected, from the point of view of the park owners, had the measure gone forward. It is therefore incredibly important that we have reached the position we have.

Some genuine points have been made about the consultation. One needs only to do a Google search to find headline after headline, in both local and national papers, about the state in which the industry has found itself in recent years. Indeed, it had to go to the previous Government looking for support, although I am not sure that a great deal was forthcoming. We are talking about an industry that has struggled considerably over the past few years, so quite who came up with the idea of slapping on 20% VAT, thereby affecting sales by up to 30%, I do not know, and I hope that some lessons will be learned. I prefer to see what the Government have done not as a U-turn, however. There was a US politician who used to describe a U-turn as a recalibration of policy, so I welcome this recalibration of policy. It is a shame that the previous Government did not do that on more occasions, as my hon. Friend the Member for Beverley and Holderness mentioned.

Welfare Reform Bill

Debate between Lord Field of Birkenhead and Andrew Percy

Tuesday 21st February 2012 Commons Chamber

[Andrew Percy]

We need to address the failure to provide adequate housing stock in this country. However, I say to my hon. Friend and near neighbour that the Government’s proposal is not a way to do so. It is not a simple problem to solve.

The crux of the amendment is that if there is suitable accommodation to go into, people should go into it, but just as there is an insufficient number of bigger homes for families, there is an insufficient number of smaller, one-bedroom properties for those groups of people to go into. If we apply the argument that there is no suitable housing for one group of people and we must therefore do something about them, we should also argue that we should not penalise people who are under-occupying if there is no suitable accommodation for them.

The sensible element of the Lords amendment is that the penalty kicks in only if people refuse a suitable property. That is eminently fair. Hon. Members must come to their own conclusions, but I will vote accordingly. I look forward to hearing other contributions to the debate.

[Mr Frank Field (Birkenhead) (Lab)]

As the House may know, I agree with the Government on many aspects of the Bill and I have not always shared the sentiments of Opposition Front Benchers. I regret that, but I have made my position clear. However, I today wish to speak against the Government on their stance and to support my right hon. Friend the Member for East Ham (Stephen Timms).

I do so because the change that the Government are making is shameful. Anyone who has sat through debates on the Bill will know that the Government’s body language is totally different to that in respect of other measures. They have been forced to take this measure by the Treasury. It goes against all that the Bill tries to achieve, which is to work with the grain of human nature. This proposal, which has been forced on the Department for Work and Pensions, works against that grain.

There are four reasons why Government Members should today save their favourite Front Benchers from the course that the Treasury is making them go down. First, let us imagine that places are available—that we could wave them into existence with a magic wand—and that all the people whom the Government condemn as under-occupying could move. That is the last thing the Government want, because to satisfy the Treasury requirements, the Department has had to enter into the accounts that it will make a substantial saving. If it were possible for people to move—all hon. Members know that it is not—the measure would fail, because it is being introduced not to even out housing, but to deliver a major saving in public expenditure to the Treasury by singling out the group who under-occupy. Therefore, the first reason why I hope Government supporters reject the measure is that it makes no sense.

Secondly, as we have heard, even if people move into the private sector, the total bill to taxpayers will be greater than if they stayed in social housing and were not penalised. The Government risk making the achieving of cuts in public expenditure that much more difficult than it is.

Thirdly, the Government’s proposal strikes against other major Government objectives with which I agree. The Government say that the reform is aimed at strengthening families and building stronger communities, but this move sticks a dagger into both those objectives. It will affect parents in families that have broken up and wish children to come and stay, and people who have carers rather than entering permanent care. Furthermore, as the hon. Member for Brigg and Goole (Andrew Percy) said in his fine speech, people might snore. How many marriages have been saved because one partner who snored could move into another bedroom? These details do not appear in public accounts details but they appear in real life. If this measure passes, far from strengthening families and enabling them to relate to and visit one another more easily, it will make it more difficult, and it might well drive out of the community upstanding citizens who play a much wider role, in the most difficult circumstances, in trying to beat the yob culture that engulfs them.

There is a fourth reason I speak and wish Members, particularly on the Government Benches, to vote against the Government and save their own Front Benchers. The Government know that I do not accept all their poverty data, but they do not have the courage to come out, as I want them to do, and declare on that—perhaps one day they will find that courage. I do not think that the poverty data properly measure whether people are benefiting from the general rise in living standards that has occurred for generation upon generation in this country. Harold Macmillan said that the poor should benefit from rising living standards. One way of ensuring that they do so is to give them the freedoms that I and other hon. Members have—those small differences in life that so improve its quality. Having a spare bedroom with which to offer hospitality to family and friends can make such a difference to the quality of one’s life.

The Government know that they are going against a valuable tradition dating back to the Macmillan era. This is not a welfare reform measure. It will be a recruiting sergeant for the money lenders and will be looked on as an eviction measure. Given that the DWP cannot save itself from this terrible measure, forced on it by the Treasury, I hope that Government Members will save the Department from pushing through this nasty, mean little measure. I hope that the House will send a clear message to the House of Lords that, even if we do not win tonight, they should keep up the fight and send it back until there are enough Government Back Benchers to save the Department from this shabby little folly.