Tax Fairness

Debate between Lord Foster of Bath and Lindsay Hoyle

Tuesday 12th March 2013 Commons Chamber

[Mr Foster]

No, I will not.

A number of speakers debated the 50p tax—[Interruption.]

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

Order. Mr Davies, you have spoken. It is up to the Minister when he gives way. It is not for you to keep reminding him, saying that he should give way.

[Mr Foster]

Thank you, Mr Deputy Speaker.

It is worth repeating yet again that the Opposition put the 50p tax rate in place for a whopping 36 out of their 4,758 days in power. As my hon. Friend the Exchequer Secretary made clear, a recent review showed that the additional rate is a distortive and economically inefficient way of raising revenue. So we have decided—sensibly, in my view—that it is neither efficient nor fair to maintain a tax rate that is not effective at raising revenue from high earners and risks damaging growth. That is why we have introduced a top rate of 45p, which will be higher than the top rate that existed under Labour for all but 36 days of their 13 years in office.

It is not true to suggest, as some have done, that the Government are not requiring the wealthiest to pay more. We have continually increased the tax contribution of the richest since the election. The 2010 Budget introduced a higher rate of capital gains tax; the 2011 Budget tackled avoidance through disguised remuneration; and the 2012 Budget increased stamp duty land tax to 7% on residential properties costing £2 million or more. We are also the Government who took action in the autumn statement to reduce the cost of pensions tax relief, and we introduced a 15% rate of stamp duty for properties owned through a corporate vehicle. I am grateful to my hon. Friend the Member for Rochester and Strood (Mark Reckless) for a number of suggestions of further measures that we can take in this area, which we will certainly consider, but I can confirm that if a property is taken out of a corporate envelope, SDLT will be paid in full.

As a result of the Government’s actions, the richest pay more tax on capital gains, more stamp duty on their homes, more tax on their pension contributions, and more on income tax. As the Institute for Fiscal Studies has confirmed, the rich are now paying a higher percentage of income tax than at any time under the previous Administration. Given our measures to boost compliance, more of the tax owed will be collected. I thank the hon. Member for Scunthorpe for his praise for our work in this area.

As well as making the wealthiest in society pay more, we are asking less of the poorest in this country. As the hon. Gentleman said, we are helping the hard-working families in this country. From April 2013, the income tax personal allowance will increase yet again by £1,335 in cash terms to £9,440. This change will benefit 24 million individuals, lift an additional 1.1 million out of income tax altogether, and provide a real-terms gain of £223 a year to basic rate taxpayers.

In total, the coalition’s actions since we came into office mean that 2.2 million people under the age of 65 will have moved out of paying income tax altogether, and there is a tax cut of £600 for more than 20 million people. We are proud of the way in which we are putting fairness firmly on the agenda. As the Secretary of State for Business, Innovation and Skills said earlier today, parties should be judged on what they deliver on fairer taxes, not on what they say about them. It is deeds not words.

The Labour party when in office failed to back our mansion tax proposals, and now we are not even clear whether it is willing to include a mansion tax in its 2015 manifesto. The Liberal Democrats have made it clear that we are in favour of such a scheme, but I urge my colleagues to support the Government’s amendment, which reiterates our party’s support for the mansion tax without putting the coalition Government at risk. It is the country’s economy and people that need a strong, co-operative and working Government, which this coalition Government are providing. The do not need a Labour party playing the exact kind of cynical political games that the public so revile. The hon. Member for Ashfield (Gloria De Piero) said that the public disliked infantile Punch and Judy politics. So do I, and that is why I urge the House to support the amendment.

Question put (Standing Order No. 31(2)), That the original words stand part of the Question.

Local Government Finance (England)

Debate between Lord Foster of Bath and Lindsay Hoyle

Wednesday 13th February 2013 Commons Chamber

[Mr Foster]

I will not give way now.

Not only are this Government helping people by reducing their income tax; we are also helping them by keeping their council tax down. Interestingly, the shadow Secretary of State did not mention that issue. As my hon. Friend the Member for Bromley and Chislehurst (Robert Neill) said, the right hon. Gentleman’s speech was full of huff and puff and dated thinking. It was the same old mantra from Labour: nothing about protecting council tax payers from the huge rises they suffered under the Labour Government; nothing about finding more efficient and effective ways of delivering services, as many authorities are now doing; and nothing about the real opportunities provided by the business rate retention scheme. Helping local economies to grow means more money will flow into the local council.

The shadow Secretary of State asked a number of questions. He asked why the business rate baseline had been based on two years, not the five years we originally proposed. The answer is simple: we consulted and that is what the Local Government Association asked us to do. He asked what we are doing to help councils with the potential impact of business rate appeals. Again, we listened to local government, and then agreed that the costs could be spread not over one year, but now over five years, and we reduced by 8% the anticipated income and we have introduced a safety net for those whose income falls below 7.5%.

I was surprised that the shadow Secretary of State again attacked what he called the bedroom tax and failed to mention that the same approach was adopted for 13 years by the Labour Government. [Interruption.] He failed to mention that 390,000 households—[Interruption.]

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

Order. We must have a little more order. It is very hard to hear the Minister, and it is important that all Members can listen to what the Minister has to say.

[Mr Foster]

My point is that the shadow Secretary of State failed to mention that 390,000 households have two or more spare bedrooms, while 278,000 households are overcrowded. However, I will give him some credit for getting up to date in one area. Last September, he came out in support of Manchester council spending nearly half a million pounds on a single Alicia Keys concert, so he is at least ahead of the Secretary of State in that he knows who Alicia Keys is, and I give him credit for that.

The Government have already done much to help local councils by giving them increased freedoms to help them meet the needs of council tax payers. In Monday’s debate, the hon. Member for Derby North (Chris Williamson) said that

“Labour’s policy is to give a fair deal, a new deal, for local government and to allow local government on the ground to determine the shape of local government, rather than it being imposed from the top.”—[Official Report, 11 February 2013; Vol. 558, c. 676.]

That certainly was not the policy of the Labour party when it was in power. Central Government’s stranglehold over local government got ever tighter then, but perhaps he is right and Labour has seen the error of its centralising ways. While the Opposition debate a new approach, we are delivering a new approach. We have already provided greater borrowing flexibilities, a general power of competence, the removal of numerous ring fences, and increased flexibilities in the decision-making process.

Ministerial Code (Culture Secretary)

Debate between Lord Foster of Bath and Lindsay Hoyle

Wednesday 13th June 2012 Commons Chamber

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

Order. Mr Bryant, you hope to catch my eye, and I was thinking of calling you next. I am sure that you will want to share all your information with the House then, rather than wasting it on interventions.

[Mr Foster]

We and the Deputy Prime Minister are clear that questions need to be answered. It would have been better had the matter been addressed by the independent adviser, but that is not the system we currently have, which is the system that we would like to change. I want to make it clear, however, that this is not, as some have suggested, an issue of collective responsibility. There was not a collective decision on this. It is not part of the coalition agreement but was a decision taken solely by the Prime Minister, and in no way will our vote, or absence of votes tonight, preclude us from continuing to work with our coalition partners on the issues agreed in the coalition agreement and in sorting out the economic mess in which the previous Government have left us.

Amendment of the Law

Debate between Lord Foster of Bath and Lindsay Hoyle

Monday 26th March 2012 Commons Chamber

[Mr Foster]

I do not know whether the hon. Gentleman has looked at the detail of the OBR’s calculations, but if he does he will see that the additional money going to pensioners totals £1.75 billion and the cost of the removal of the age-related allowance is £360 million. That means a net increase to pensioners—

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

Order. The hon. Gentleman has made his speech and there are many Members who will not get in. It is fine to intervene, but I certainly do not want a second speech.

School Sports Funding

Debate between Lord Foster of Bath and Lindsay Hoyle

Tuesday 30th November 2010 Commons Chamber

[Mr Smith]

While the hon. Gentleman is not being polarising, and in the spirit of consensus that he says he espouses, does he agree that it would make sense for the coalition Government to respond positively to the constructive offer that my right hon. Friend the Member for Leigh (Andy Burnham) made? Common cause can be made and we can find a way to save the essential infrastructure for the invaluable work that those partnerships—

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

Order. Interventions must be very short. The right hon. Gentleman should know better; he has been here long enough.

[Mr Foster]

The answer to the right hon. Gentleman is, broadly, yes, as I will say in my conclusion.

If I wanted to be positive, I would praise the previous Government for their work, for example, in building up the links between schools and sports clubs. Above everything, that increased the opportunity to provide a wider range of sports, so that more children are more likely to find a sport that they like. I would also praise the work that they did in developing the amateur community sport status, which gave tax benefits to sports clubs, and the way in which they restructured and simplified the landscape of the various sporting bodies. In particular, I would praise them for the excellent UK school games, which had a great effect on very many young people—it took place in my constituency of Bath.

The debate has also been polarised on the question of whether the school sport partnerships scheme was excellent or varied. The obvious truth is that there are examples of very good practice and of not such good practice.

Surely the House wants to ensure that it provides a lasting sporting legacy from 2012. That is what we are all about. We know that if we are to do that, we must ensure that we have coaches, volunteers, sports facilities and many other things, including a proper support structure for sport, whether for school, amateur or elite level sport. The one thing that is clear to me is that school is where it all starts. If we can get sport provision right in school, particularly by linking schools with clubs, we have a real opportunity to provide that sporting legacy from 2012.

The Government are right to have introduced the innovation, building on the UK school games, of the schools Olympics—or whatever it will ultimately be called—because that will boost the amount of inter and intra-school competition.