HMRC and Google (Settlement)

Robert Jenrick Excerpts

Monday 25th January 2016 Commons Chamber

[Mr Gauke]

I appreciate the hon. Gentleman’s comments, but he should not be quite so defeatist. If he looks at what happened over the previous Parliament, he will see that HMRC’s large business team brought in £38 billion in additional tax as a consequence of their intervention. The UK has a reputation as somewhere with competitive tax rates but where taxes do have to be paid. That is a reputation that we should all seek to maintain.

[Robert Jenrick (Newark) (Con)]

Although £130 million might seem low for a business as large as Google, is not the reality that the Revenue cannot do as much to collect back-taxes as we would like it to, because they come from a significantly more lax era? This morning one tax expert described the situation under the previous Labour Government thus: “Everything was above board, and the board was set at floor level.” Under this Government, the diverted profits tax gives us the opportunity to change the landscape, but is there not a concern that letting Google off paying the diverted profits tax suggests that the Revenue will find this significantly more complex to implement than we would like? What more can we do to give the Revenue the support it needs to apply that evenly and to all?

[Mr Gauke]

We always seek to ensure that HMRC has the powers and resources it needs. For example, in the July Budget last year we announced a requirement for large tax companies to set out explicitly what their tax strategy is, and we will be legislating for that in the Finance Bill.

Oral Answers to Questions

Robert Jenrick Excerpts

Tuesday 19th January 2016 Commons Chamber

[Mr Speaker]

Robert Jenrick—I am calling you, man; don’t leave the Chamber.

[Robert Jenrick (Newark) (Con)]

Thank you, Mr Speaker. You are very kind. My superb hon. Friend and neighbour the Member for Sherwood (Mark Spencer) had already asked the question, but I will ask it again as that is not unusual in this place. My parents formed their small business in the first enterprise zone created by Margaret Thatcher in Telford in 1984. My right hon. Friend the Chancellor has carried on in that great Conservative tradition. Will he afford the same opportunities to get on in life and create jobs to my constituents and those of my hon. Friend the Member for Sherwood by backing Thoresby colliery as the next and best enterprise zone?

[Mr Osborne]

My hon. Friend has just demonstrated that he is a very smart thinker on his feet. He is always ready to stand up for the interests of his Newark constituents. As I said to our hon. Friend and his neighbour the Member for Sherwood (Mark Spencer), I would love to get the Thoresby colliery enterprise zone into a condition where we can give it the go-ahead, and I give him and my hon. Friend his neighbour my personal commitment that we will try to do that over the next year or two.

Oral Answers to Questions

Robert Jenrick Excerpts

Tuesday 1st December 2015 Commons Chamber

[Mr Osborne]

We promised to turn the British economy around and that is exactly what we have done. I know that the hon. Gentleman is out of sorts with the cultural revolution that is taking place on his Front Bench at the moment, but I just hope that in the modern Labour party they

“let a hundred flowers bloom”.

[Robert Jenrick (Newark) (Con)]

Entrepreneurs’ relief is a costly relief—and the Chancellor was right to reform it earlier this year—but it is an important way to incentivise our entrepreneurs to invest in businesses and to create jobs. Can he reassure our entrepreneurs that he remains committed to that relief and will take it forward in the years to come?

[Mr Osborne]

Of course we want entrepreneurs’ relief to be directed at entrepreneurs, and that is why we made the changes earlier this year, but during our time in office Conservative members of the Treasury team have doubled and redoubled that relief. We very much support that help for our enterprise economy.

Tax Credits

Robert Jenrick Excerpts

Tuesday 20th October 2015 Commons Chamber

[Robert Jenrick (Newark) (Con)]

Much has been said today, but I wish to concentrate on two points. First, we must accept that tax credits are a failed policy. I do not think that anyone has any credibility in this debate unless they accept that the policy is a massive failure of the previous Labour Government. Even if we are generous to Gordon Brown—and there is no reason why we should be—and we adjust for prices, this is a policy that should have cost £6 billion and has ended up costing £28 billion. No economy can afford such a bill. It is wasteful. It is a byzantine merry-go-round of recycled money that has “misdirected”—to use the jargon—at least £10 billion in fraud and error. As has been said, it has enabled many employers, including some of our largest companies, to pay their staff less in the full knowledge that the state would top up weekly incomes. In doing so, the policy has depressed wages. I know that all too well from my constituency where the toxic combination of out-of-control immigration and out-of-control welfare has meant that there has been little, if any, pressure on some of my largest employers to increase wages in the past 10 or 20 years, and it is an increase that the working people of Newark want to see and to which this Government are committed.

[Several hon. Members rose—]

[Robert Jenrick]

I will not give way, because time is pressing.

The second question we must ask is: are we willing to put this back in the box labelled “too difficult”, or is this generation of Members of Parliament willing to take the matter on? Do we want to kick this can down the road for future MPs and constituents to deal with, or do we have the guts to take it on? Of course it is not easy. No welfare reform is painless, and any boondoggles given away before general elections are, by their nature, the most difficult things to retract, as my right hon. and learned Friend the Member for Rushcliffe (Mr Clarke) has said. This matter is important, because it cuts to the core of what we are here for. Are we, as Members of Parliament, elected here to leave our children and grandchildren a state that is in worse repair, less competitive and more dependent on China? I have just been to hear the President of China speak a few moments ago. I want a country that can stand on its own in the world, pay its way and ensure that work pays, where millions of working people, including 4,000 or 5,000 of my constituents—

[Graham Jones (Hyndburn) (Lab)]

Will the hon. Gentleman give way?

[Robert Jenrick]

I will not, as time is against me.

I want a country where 4,000 or 5,000 of my own constituents are not reliant on welfare, but have the dignity of a job that pays.

Greece

Robert Jenrick Excerpts

Monday 6th July 2015 Commons Chamber

[Mr Osborne]

The hon. Lady is perfectly right to draw to the House’s attention the very difficult situation that Greek families can find themselves in at the moment. That is all the more reason why we need to find a resolution. As I have said, the British pharmaceutical companies, which are important suppliers to the Greek medical system, are continuing to make those supplies, despite the imposition of capital controls. The whole question of what should happen if Greece falls out of the eurozone is something that I think we should return to if that eventually arises. Greece is one of this country’s oldest allies and of course we will always stand by it.

[Robert Jenrick (Newark) (Con)]

The Chancellor has said that we must not underestimate the impact of these events on the UK economy. Whatever happens, the weak and stagnating economies of southern Europe, in particular, will continue to deteriorate. Looking towards the Budget and the months ahead, will my right hon. Friend use all his offices to pivot the UK economy towards growing and emerging economies elsewhere in the world, particularly as he did decisively with the UK’s leading role in the Asian Infrastructure Investment Bank?

[Mr Osborne]

My hon. Friend makes a good point. British exports are too dependent on European markets and have been badly hit by weaknesses in the European economy over the past five years. That is why we have put a huge effort into trying to expand our trade and investment in fast-growing parts of the world, such as Asia. We want to be part of the new institutions there, such as the Asian Infrastructure Investment Bank. However, some southern European economies, such as Spain’s, have shown a remarkable turnaround, because they have taken difficult decisions, reformed their economies and are now reaping the benefits.

Productivity

Robert Jenrick Excerpts

Wednesday 17th June 2015 Commons Chamber

[Robert Jenrick (Newark) (Con)]

I, too, congratulate the new Members on their excellent maiden speeches. May I also welcome my Nottinghamshire neighbour, the hon. Member for Nottingham East (Chris Leslie), to his role as shadow Chancellor? He is the third Nottingham man in recent times to hold the position, although of course only my right hon. and learned Friend the Member for Rushcliffe (Mr Clarke) ever got the top job. I am sure that if the hon. Gentleman needs any friendly advice on how to run a successful economy, my right hon. and learned Friend would be happy to give it.

The fact that productivity continues to grow in prominence is, as has been said throughout the debate, a recognition of the remarkable achievements in employment during the past few years—almost 9,000 new jobs have been created since 2010 in my constituency—and the fact that we now have a credible, long-term plan for the public finances, respected by the markets. We need to continue to deliver on it. It is also an acceptance by all of us that the country is running up against the limits of what can be achieved by boosting employment alone. We are well on the way to becoming a country of people in work, but the task for the next five years is addressing how we can become a country of people who are well paid.

So much has been said already, but let me address one area in particular. The truth is that the UK has never quite managed to develop an entrepreneurial culture equivalent to that in the United States. Governments do not create entrepreneurs or the businessmen and women of the future, but they can and must be the flagbearers for them. Margaret Thatcher was, undoubtedly, the outstanding champion of British enterprise of the past 30 years. We need to re-awaken the spirit of those times, albeit in contemporary language, and I am certain that the Treasury Front-Bench team will do so.

A few days ago, I had the great pleasure of going to the excellent Palace theatre in Newark to watch the play “Arcadia”, and a line in it stuck with me. It was when one character turns to another and says, “This is the greatest time to be alive, because everything we thought we knew is wrong”. We should all remember that line. With the internet upending old industries; and with the shift in power from the west to the east; new opportunities are out there, if only we and our generation can seize them with a new, spirited, entrepreneurial culture.

How might we do that? We could pivot towards the growth of those emerging markets, and away from the stagnant economies, mostly in Europe. That means new free trade agreements with China; avoiding the caricature of the Transatlantic Trade and Investment Partnership; using the Foreign and Commonwealth Office and the Commonwealth network, as we did in the previous Parliament; and not complaining, as some on the Opposition Benches do, of mercantilism in the FCO as if trade were a dirty word.

The UK should become a hub of the IT sector in Europe. It has the best universities and it has the venture capital industry; we just need the ambition to realise it. We should use our universities. The Catapult initiative that we have heard of already has been and will continue to be excellent. We should have the confidence to allow enterprise to have its rewards. Genuine wealth creators should be able to reap the benefits of their success and not be ashamed of it.

We need to be on the side of the insurgent, and not the vested interest. We need to tackle the big six and to break up BT Openreach. Generations of Treasury Ministers have had “supply side” written on their political gravestones. I am sure that the Chancellor and the Chief Secretary to the Treasury will be remembered as the entrepreneurs’ champions. There is no better epithet. We need to inspire a generation to succeed, prosper and excel, as all Conservative Governments have done in the past.

[Mr Speaker]

Order. As the House will know, the ballot for electing Chairs of Select Committees closed at 5pm. Counting has been under way since then. I had hoped that it might be possible to declare the results to the House at 7.15 pm this evening—in contrast to the arrangement five years ago—before the Adjournment. Sadly, I have to tell the House that that will not be possible. I therefore intend to announce the results after questions tomorrow morning at around 10.30 am. I am advised—and I am glad—that there will be no prior publication.

Royal Bank of Scotland

Robert Jenrick Excerpts

Thursday 11th June 2015 Commons Chamber

[Harriett Baldwin]

No, I have not read that report.

[Robert Jenrick (Newark) (Con)]

Is not the reason it is difficult to get our money back from RBS that, other than the Greek banks, no other major bank in the world is in such a parlous, unprofitable state, the root causes of which go back to the last Labour Government—a poor loan book, terrible misconduct, resulting now in catastrophic fines, and ill-judged mergers? Even if we sell the shares at a loss, would that not merely be a tragic reminder to the British public of the failure and economic incompetence of Labour?

[Harriett Baldwin]

I could not put it better myself.