Spending Review 2020
Lord Goddard of Stockport Excerpts(3 years, 4 months ago)
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Lord Goddard of Stockport (LD) [V]
My Lords, from a Greater Manchester perspective, the commitment to rewrite the Green Book is welcome. For too long, the Government’s appraisal process for investment has unfairly favoured London and the south-east to the detriment of communities in the north of England. I hope that the refreshed Green Book will help end that imbalance.
I am pleased by the news that a national infrastructure bank will be set up and its headquarters will be in the north, hopefully in Stockport—the heart of Greater Manchester—a town with a motorway passing through the heart of it, an intercity line to London three times an hour, and the lowest Covid rates in Greater Manchester. This would show real commitment to northern communities, and that this investment could be the start of a long-term strategy to underpin what I hope are substantial investments in the north.
Everyone welcomes the commitment to increase the pay of some in our national health service and the modest pay rise for those on the lowest incomes in other public services. However, I am disappointed that the pay rise does not extend to others across our public sector who have been so integral in our fight against the pandemic. There was no mention of social care workers, who have also been working on the front line, and no mention of police officers, teachers or council workers, many of whom were redeployed at short notice to aid in the fight. They should be recognised for the work they have done.
What are the Government proposing for the 3 million people who are still currently excluded from Government support schemes? I was disappointed that the Chancellor could not mention them in his speech. These people account for 10% of the UK workforce and hundreds of thousands of working people across Greater Manchester. It was a missed opportunity by the Chancellor not to announce support for that huge number of taxpayers.
Finally, if Greater Manchester were to receive its share of the so-called levelling-up fund, it would amount to £30 million. This is simply not enough: a £30 million injection of cash for 3 million people, a city region that has suffered for years with underfunding of transport, skills, healthcare and infrastructure. Frankly, this Government must to more for the north and, in particular, Greater Manchester.
Finance Bill
Lord Goddard of Stockport ExcerptsFriday 17th July 2020
(3 years, 9 months ago)
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Lord Goddard of Stockport (LD) [V]
My Lords, I will address the loan charge in the Finance Bill. For the avoidance of doubt, we do not support tax evasion and fully support everybody paying the tax that is due. However, the scandal of the loan charge must be addressed.
Today I spoke to a family whose breadwinner unwittingly signed up for a payroll loan scheme in 2012. He checked that the company was legally compliant. It was backed up by a QC opinion and a chartered accountant was appointed to look after his tax returns. It was only in 2018 when he had retired that he became aware that a loan charge had been made to his retirement plans. Now on a pension, not working, he faces a bill of upwards of £50,000. He is uncertain of the final settlement, as HMRC will decide how much to add on in penalties, interest and maybe inheritance tax. The Loan Charge APPG has published a damning report on the conduct of HMRC’s dealings with loan charge-affected citizens, who have no right of appeal to HMRC. They simply want to work and be on the right side of legislation.
This person is not alone. About 100,000 families are similarly affected. The use and industry-wide acceptance of payroll loan schemes, where the payroll scheme makes substantial deductions and passes the money back to the employees through a mixture of PAYE and credits, became common from 2010. The people affected are not Premier League footballers and celebrities, but hard-working contractors in oil, gas and IT and, latterly, NHS and care workers, for whom in many instances it was a condition of employment that they engage in a recommended payment loan scheme.
These schemes still operate. A recent BBC report on “Money Box Live” highlighted how they are drawing into their clutches lower-paid and essential workers. This Finance Bill also condones retrospective tax law—a dangerous precedent.
According to a recent Morse report, the average liability is around £50,000. For the family I spoke to, that is two years’ gross pension and clearly unpayable. They are now putting their house on the market, as they have no other course of action. New Clause 31, which is not included in the Bill, would have restored natural justice to our system. It proposed to exclude people who have submitted tax returns in good faith and that the loan change should apply only to those who have deliberately reduced their tax bill. The principle of “innocent until proven guilty” would also have been preserved.
In summary, the loan charge has not stopped payroll loan scheme companies operating. It is retrospective. It has caused immeasurable stress and hardship to those facing it. It is forcing house sales, bankruptcy, family breakdowns and confirmed suicides. It does not serve a purpose. In rejecting NC31, the opportunity to restore the rule of law and fairness to the tax system has been missed. It must be looked at again.
Covid-19: Economy
Lord Goddard of Stockport Excerpts(3 years, 10 months ago)
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Lord Goddard of Stockport (LD)
According to the Institution of Civil Engineers, the construction industry is set to play a key role in restarting the economy and helping the nation recover from the impact of the crisis. If it is to facilitate these efforts, the Government need to help it weather the storm.
Jobs are coming under threat as the UK braces for a global recession due to Covid-19. In a year or so, with workloads significantly down, there will be a need to preserve skills to prevent future skills gaps and shortages in the industry. Socially valuable projects that are labour-intensive—particularly repair, maintenance and improvement work—will provide a stable pipeline of work while keeping people employed and creating a built environment fit for the future.
The noble Lord, Lord Bourne of Aberystwyth, made the point about apprentices. Would the Government consider suspending the apprenticeship levy indefinitely to provide immediate financial relief to construction employers, and implementing an apprenticeship guarantee?
Previously, there has been a tendency for the Government to focus on large-scale engineering projects that garner public attention but do not support large amounts of labour or a stable pipeline of work for the industry. In planning for future construction, would the Government recommend putting forward long-term, socially valuable projects that are labour intensive or keep more people in work? For instance, the energy performance of the UK’s existing housing stock must be improved if we are to achieve our long-term emissions targets.
The enhancement of UK housing stock to improve its energy efficiency would be a socially valuable project that would maintain and sustain employment. This type of work is intensive and equally spread geographically, making it an ideal project for employing the construction sector, supporting regional growth and getting the economy moving. I recognise that this is a complex task, but it would really reduce strain on the labour market and supply.
Census (England and Wales) Order 2020
Lord Goddard of Stockport Excerpts(3 years, 11 months ago)
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Lord Goddard of Stockport (LD)
My Lords, the proposed 2021 census will probably be the most important for a generation. It will begin to show the devastating effects of Covid-19 on our communities and individuals. It is imperative that the largest number of our citizens are included. For the first time, questions will be asked about gender identity and sexual orientation—and they will be voluntary, which is to be welcomed. The long-overdue information will allow the Government to inform policy, plan for a clear picture of LGBT rights and communities, and target resources to them.
In the other place last week, many speeches were made about inclusivity and the Sikh communities. Sikhs have been recognised as an ethnic group for over 40 years, since this House made that ruling in 1983. The case and the law have been overwhelmingly made; Sikhs should have a tick box under the ethnic identity question. The same argument applies to Cornish people. In the 2011 census, 83,966 people in Britain ticked the “other” box and wrote “Cornish” on the form. In Cornwall, that figure was 73,320—that is 14% of the population. Those citizens will not go away. The Minister must act if, as the phrase goes, we are all in this together.
Finally, the guidance says that the census will be predominantly online and will be the most inclusive ever. It is vital that paper copies are made for the enormous number of people who are not on the internet and do not have online facilities. The noble Baroness, Lady Kennedy, said that could be 10% of the population. If the Prime Minister can write to every household and basically tell them to stay in, surely the same option can be given for the census form.