Taxation: Avoidance

Debate between Lord Sassoon and Lord Dubs

Thursday 28th June 2012 Lords Chamber

[Lord Sassoon]

As a general proposition, I very much share the view of my noble friend.

[Lord Dubs]

My Lords, I will put a suggestion to the Minister and I ask him not to reject it out of hand but to think about it. My suggestion is as follows. Would it not be helpful if all tax returns were in the public domain?

[Lord Sassoon]

My Lords, I am always prepared to consider every suggestion that comes up in your Lordships’ House. However, I think that one is getting a little radical and I cannot promise him much early progress on it.

Taxation: Plastic Bags

Debate between Lord Sassoon and Lord Dubs

Monday 28th May 2012 Lords Chamber

[Lord Sassoon]

My Lords, I am sure that the authorities of the House have listened carefully to that bit of advice.

[Lord Dubs]

Is the Minister aware that he must be the first Treasury Minister in history who seems not to want the money when there is pressure for a tax? The fact is that the voluntary scheme is useful, but does he not agree that taxation could significantly reduce the number of plastic bags in use, thereby saving the environment and perhaps giving the Treasury some more money?

[Lord Sassoon]

My Lords, this is also a Government who take the burdens on business through red tape extremely seriously. We have to balance the various factors at play here.

Tobacco: Smuggling

Debate between Lord Sassoon and Lord Dubs

Thursday 26th April 2012 Lords Chamber

[Lord Dubs]

To ask Her Majesty’s Government what is their estimate of the loss of revenue through the smuggling or illegal sale of tobacco products in the United Kingdom.

[The Commercial Secretary to the Treasury (Lord Sassoon)]

My Lords, the latest estimate from 2009-10 of the annual lost revenue to the Exchequer through the smuggling or illegal sale of tobacco products is £1.3 billion for cigarettes and £750 million for hand-rolling tobacco.

[Lord Dubs]

My Lords, given that this large sum of money is lost to the Exchequer, what do the Government propose to do to reduce the amount? Above all, does it not drive a coach and horses through the policy of trying to reduce smoking if there are cheap cigarettes, some of them even worse for health than the cigarettes that we make in this country, on sale on street corners up and down the country? We have both a revenue problem and a health problem.

[Lord Sassoon]

My Lords, the strategy has many different strands. The Government issued a comprehensive tobacco smuggling strategy in April 2011. Specifically, £25 million of HMRC’s total expenditure on tax avoidance is going in this area. It has to be said that over the past decade, the illicit market in cigarettes has come down from 21 per cent of the market in 2000 to 10 per cent in 2009-10. As I am sure the noble Lord knows, very significant progress has been made, and the Government are fully committed to continuing with that. On the other side, there is the tobacco control plan to make smoking less affordable. The noble Lord, Lord Dubs, is quite right regularly to press on this. It is a multi-layered strategy, and the present Government will continue to press on all aspects of this challenge.

Financial Services: Shareholder Engagement

Debate between Lord Sassoon and Lord Dubs

Wednesday 19th January 2011 Lords Chamber

[Lord Sassoon]

My Lords, there is a fine balance to be struck between making sure that shareholders get all the information they require on the one hand, and on the other hand allowing companies to take advantage of electronic and other media to disseminate information in a way in which an increasing proportion of shareholders wish to receive that information and which may be environmentally friendly if it does not require large amounts of paper to be used. I am glad that the FRC is grappling with that issue.

[Lord Dubs]

Does the Minister agree that many shareholders have no voice in this at all because they are shareholders through pension schemes or through owning PEPs? These shareholders can exercise no influence. Can the Government think of doing something about that?

Banking: Bonuses

Debate between Lord Sassoon and Lord Dubs

Monday 1st November 2010 Lords Chamber

[Lord Sassoon]

My Lords, the Walker report, which was commissioned by the previous Government and reported in November 2009, made a number of important recommendations, some of which have already been incorporated by the Financial Reporting Council in its governance code. Sir David Walker made other recommendations on disclosure which remain to be considered. As for taxation, I have already said that we are considering the costs and benefits of a financial activities tax in relation to banks and remuneration. We are doing that by working with our international partners to make sure that, if we produce proposals along those lines, they are consistent with international practice and with keeping the banks operating in this country.

[Lord Dubs]

Even if the bankers say that they will leave the country if they are taxed more heavily, will the Minister assure us that that outcome might be a good thing rather than a bad one?

[Lord Sassoon]

My Lords, lots of people threaten to do all sorts of things when they are in the middle of a negotiation. Whatever we continue to do to tackle unacceptable bonus structures in banks, we want to ensure that, among other things, they are incentivised to align their remuneration structures with the reduction of risks that bankers entail, and that we continue to have an important banking sector in this country.