Children Not in School: National Register and Support

Debate between Baroness Winterton of Doncaster and Bridget Phillipson

Tuesday 23rd January 2024 Commons Chamber

[Bridget Phillipson]

My hon. Friend is absolutely right about the challenges right across our SEND system—a system that the Secretary of State herself has described as “lose, lose, lose.”

School leaders know that this is a disaster, yet earlier this month the Department updated us all on the work of the workload reduction taskforce. It is not the work of teachers, the taskforce clarifies, to investigate a pupil’s absence. Teachers may do it—it is vital work that needs doing—but it also depends on our amazing support staff.

Labour’s plan to tackle the attendance crisis starts with our smallest children. It includes a childcare system modernised from the end of parental leave to the end of primary school, high-quality early education, a focus on life chances for children—not just on work choices for parents—and high and rising standards right from the start, with early language interventions to identify and remove barriers to learning, and a determination to reform the SEND system, to put money behind children, not lawyers, and to tackle issues before they hold children back, with a new focus on primary numeracy so that children love maths at six, never mind at 16—excellence for everyone; not for some of our children but for all of them. There will be free breakfast clubs in every primary school, because it is about the club, not just the breakfast. Every day, every child, every life and every start.

There will be 6,500 new qualified teachers and a new national voice for our support staff. Ofsted will be reformed and improved. We will end the high-stakes, low-information culture, with annual checks for attendance, safeguarding and off-rolling. There will be mental health councillors in our secondary schools and new community hubs outside them, joining up the information that we have on our children so that every child can be supported between schools and services—every issue caught, shared and addressed. And the cause for which we asked for time today? A law to register and count the children who are out of school.

Labour is clear on how we will fund that package and the change that we need: by ending the tax breaks for private schools and the mega-rich. We will invest in what we most believe in: our children and their futures, excellence for everyone, high and rising standards, and a Britain where background is no barrier to opportunity. The legislation that we will introduce next month, with the House’s permission if today’s motion is agreed to, will be simple: it will be part 3 of the Government’s own Schools Bill from 2022, which provided for a register of children not in school. That is nothing that Conservative Members would not have been prepared to vote for had it been tabled by their own Ministers, so there can be no reason or excuse for Conservative Members who care about this issue not to support the motion today and the Bill next month. They can choose their party or our children. I commend the motion to the House.

[Madam Deputy Speaker (Dame Rosie Winterton)]

As I said, I will need to put on a time limit if the next debate is to have any kind of parity with this one. The limit will be five minutes, and I will ensure that it is put up on the board so that Members are aware of it.

Points of Order

Debate between Baroness Winterton of Doncaster and Bridget Phillipson

Monday 18th September 2023 Commons Chamber

[Bridget Phillipson (Houghton and Sunderland South) (Lab)]

On a point of order, Madam Deputy Speaker. I am seeking your guidance and assistance on how I might ensure that I receive answers from the Secretary of State for Education to questions from me and a number of Members across this House about the growing crisis of reinforced autoclaved aerated concrete in our schools—questions which, in some cases, have remained unanswered for more than 10 days after the due date has passed. May I also ask whether you have received notice that an Education Minister proposes to update the House about the situation across our schools estate before the House rises tomorrow? In particular, have you received notice of whether Ministers intend to publish a new and accurate list of the affected school premises?

[Madam Deputy Speaker (Dame Rosie Winterton)]

I thank the hon. Lady for her point of order, and for notice of it. Obviously, I am not responsible for the timing of answers to parliamentary questions, but I know Mr Speaker is very keen to remind Ministers of the importance of answering questions in a timely manner. The Procedure Committee also takes a close interest in this issue, and the hon. Lady might like to raise it with the Chair of that Committee, the right hon. Member for Staffordshire Moorlands (Karen Bradley).

To the hon. Lady’s second point, I have had no notice from Ministers that they intend to make a further statement on the matter this week. However, the hon. Lady is lucky that not only are a number of Treasury Ministers present, but the Leader of the House is present and will, I am sure, have heard her point of order. As Mr Speaker said last week, he knows that Members would like an update before the conference recess. I am sure that that will all be conveyed.

Safety of School Buildings

Debate between Baroness Winterton of Doncaster and Bridget Phillipson

Tuesday 23rd May 2023 Commons Chamber

[Bridget Phillipson]

My right hon. Friend makes an important point about how we spend public money and how we spend it wisely. Sadly, what we have seen all too often is a sticking plaster approach, as she says, where short-term measures are taken even though in the long run the schools are sometimes beyond repair. Expecting schools to go through this process all the time is not an effective use of public money, but alongside that, we cannot be confident that the money is always spent in the best possible place or where there is the greatest need because Ministers will not tell us where the problems are.

I know that the Minister wants to talk about the schools in which the Government have invested, not those they have not; about the few repairs that they have done, not the many that they have not; and about the announcement that they made yesterday, not the one that we need today. Let me remind Members on both sides of the House of what Geoff Barton, the general secretary of the Association of School and College Leaders, has said:

“This is money allocated through an annual bidding programme to address significant needs in terms of the condition of school and college buildings and is most certainly not an example of government largesse.”

He went on:

“It is the bare minimum and nowhere near enough to meet the cost of remedial work to repair or replace all defective elements in the school estate in England”.

Rather than telling parents to be grateful, the Minister should come clean about the schools that are not being repaired, the buildings that are failing, the risks to our children, parents and school staff and the delays that they are enduring while the Government drag their feet. So far this year, the Department has published a list of 1,033 successful bids, which is 375 fewer than in 2022-23. I am always glad when a school gets the repairs it needs, but the story is not the schools that have been repaired; it is the ones that have not—or that have, but after goodness knows how long.

The wording of the motion presents Conservative Members with a simple choice: between their constituents and their Government; between openness and secrecy; and above all, between party and country. The choice is simple: a vote, in the public interest, to tell parents, young people and school staff what the Government know about the safety of their schools; or a vote with Ministers to keep that information hidden. I commend the motion to the House.

[Madam Deputy Speaker (Dame Rosie Winterton)]

As I am sure colleagues can see, this is a well-subscribed debate so I might have to put on a time limit. I would like to advise that it would be worth aiming for a maximum of six minutes to start with. Depending on the opening speech from the Minister, I might have to put an actual time limit on, but my advice at the moment is to start at six minutes.

Children’s Education Recovery and Childcare Costs

Debate between Baroness Winterton of Doncaster and Bridget Phillipson

Tuesday 7th June 2022 Commons Chamber

[Bridget Phillipson]

My hon. Friend has consistently campaigned on issues around childcare over many years and I am grateful to her. She is exactly right to raise those concerns, as well as the work that she did in exposing how the Government knowingly and deliberately underfunded the early years entitlement—the 30-hour offer—to parents. I pay tribute to her for that.

The Government are failing parents and children alike, because it is during the first few years that the attainment gap opens up for our children. It is also the first chance to step in and support the children and families who need it. We all see the difference that early support makes—when it happens and when it does not. In power, Labour acted decisively to support families and children, tackle the disadvantage and close the gap. A generation grew up with children’s centres. A generation such as mine were supported after 16 with the education maintenance allowance. I saw in my community the difference that those changes made. I see it in the lives of young people who grew up with that advantage, with the support that it unlocked. Some 20 years later, the evidence around attainment and early intervention is clearer and stronger than it was even then, yet the Government have been almost silent. Even before covid, children on free school meals were arriving at school five months behind their peers. That gap is set to grow. It is utterly shameful in Britain in 2022 and a damning indictment of the Government’s 12 years in power.

Right now, our children are being failed again in this cost of living crisis. When parents cannot afford to feed their kids, children are being failed. When parents cannot afford to take their kids out for the day and cannot afford an ice cream at the park or a ride at the fair, children are being failed. When mams and dads do not see their kids in the evening or at the weekend because they are working every hour that God sends to pay the bills, children are being failed. When parents skimp on food and are exhausted, without time and energy to spend with their kids, children are being failed. And when the cost of childcare, not just for two to four-year-olds but from the end of maternity leave to the start of secondary school—I am talking about parents being able to choose whether to go back to work; affordable breakfast clubs; after-school activities so parents do not have to rush back for 3 o’clock pick-ups; after-school clubs costing more than women’s median wages; and parents paying over the odds for each hour of childcare, because the Conservatives decided that the Government would not pay the going rate for the places they promised—is quite literally pricing people out of parenting, children and families are being failed. That failure is not just about the individual kids and the individual families failed by this Government, although there are millions of them and that is bad enough. Our whole country is failed when we let our children down.

This Government have no plan, no ideas, no vision and no sense of responsibility to our children and their future—the rhetoric of evidence, but no reality. We have responsibility, ambition and determination for our children. We would deliver the plan that children need now, because education is all about opportunity—the opportunities that we give all our children to explore and develop, to achieve and thrive, and to have a happy and healthy childhood. Through a broad and enriching curriculum and education, we can foster a love of learning that stays with them throughout their lives, turning our young people into the scientists, musicians, entrepreneurs, sportspeople and, yes, perhaps even the politicians of the future, generating ideas and innovation that we cannot even dream of.

Education can transform every life, just as it transformed mine. Growing up, we did not always have it easy, but I know that in many ways I was very lucky: I had a family in which I was supported and encouraged to read and where education was valued. I was lucky to attend a great local state school at a time when the last Labour Government were transforming education across our country. My teachers were fiercely ambitious for me and my friends because they believed in the value and worth of every single one of us. I want every child in every school, in every corner of this country, to benefit from a brilliant education, supported by a Government who are ambitious for their future. That is why we would make private schools pay their fair share—not to tilt the system, as the Secretary of State claims, but to support every child across our great state schools to realise their ambitions.

Today the Minister has a choice. He could stand up and deliver a speech that I suspect we have heard a couple of times before, he could continue the hollow attacks on the last Labour Government, despite no child today having been at school when we were in office—or he could stand up and, like the Chancellor, admit that the Government got it wrong. He could say that they should have acted sooner, but that they will act now to match at last the ambition of Labour’s children’s recovery plan and put our children and their future first.

[Madam Deputy Speaker (Dame Rosie Winterton)]

I suggest a limit of about eight minutes for Back Benchers, so that we can give everybody equal time.

Making Britain the Best Place to Grow Up and Grow Old

Debate between Baroness Winterton of Doncaster and Bridget Phillipson

Monday 16th May 2022 Commons Chamber

[Madam Deputy Speaker (Dame Rosie Winterton)]

I emphasise that interventions should be brief.

[Bridget Phillipson]

I am afraid that I did not catch most of that intervention—it was a bit hard to hear the hon. Lady—but I repeat that the last Labour Government rebuilt schools across our country. That has not been the record of the last 12 years.

The next Labour Government will build a Britain where children come first, where we put children and growing up at the heart of how we think about the future of our country, where Britain is the best place to grow up and the best place to grow old, and where young people leave education ready for work and ready for life.

[Bridget Phillipson]

My hon. Friend is absolutely right. The last Labour Government transformed the life chances of a generation, and it will fall to the next Labour Government to do the same. Because, in a country where we think about children as both a society and an economy of the future, we build a better Britain for everyone: a Britain of children and families where the Government work to enable and empower success and, in particular, a Britain in which the Government see the soaring cost of childcare not as a statistic to be observed but a problem to be solved. That cost is crippling: families suffer financially; children suffer socially, and our country suffers economically. When the cost of childcare, not just for our two to four-year-olds, but the whole time from the end of maternity leave to the start of secondary school—from ensuring that parents can choose, and afford, to go back to work, to affordable breakfast clubs and afterschool activities so that parents do not always need to be at the school gate—is quite literally pricing people out of parenting, children and families are being failed.

That failure is not just about the individual children and families whom the Government fail, though there are millions of them and that is bad enough; our whole country is failed when we let our children down. It is not just childcare. We see it too in the Government’s failure to face up to the damage that their mishandling of the pandemic did to the education of a generation. The Secretary of State’s failure to convince the Chancellor to invest properly in children’s recovery from the pandemic; his failure at the last spending round in the autumn; his failure in the spring statement, and his failure now—that series of failures—above all he does or says now or in the future, is what he will be remembered for. The Prime Minister’s own adviser had the dignity to resign rather than accept such failure, and Labour would have been very different from the Government.

We have a plan where the Government have failure. On the very day that schools and nurseries closed to most children in March 2020, a Labour Government would have started work on three plans: an immediate plan to support children’s learning and development remotely and as fully as possible while lockdown went on; an urgent plan to reopen schools safely and quickly, and then to keep them open so children could learn together and play together; and, critically, a plan to ensure that when lockdown ended, children’s education and wellbeing did not suffer in the long run. Our children’s recovery plan put children and their futures at the heart of how we think about moving on from the pandemic because, after all, every child in Britain did more to follow the covid rules than our Prime Minister. The impact that had on their health and educational attainment needs addressing, not ignoring.

We would introduce breakfast clubs so that every child starts their day with a proper meal; afterschool activities, so that every child gets to learn and experience art, music, drama and sport; mental health support because every report that we see tells us that children’s development has fallen behind in the pandemic; continued professional development for our teachers because every child deserves teachers second to none in support of their learning; and targeted extra investment right from the early years through to further education, to support the children at risk of falling behind, because attainment gaps open up early and need tackling early.

We would go further to lock in the gains of a recovery programme for the long term, with a national excellence programme to drive up standards in schools, because every child deserves to go to a school with high expectations and high achievements. There would be thousands upon thousands of new teachers in subjects that have shortages right now, because every child deserves to be taught maths and physics by people who love their subject and to be introduced to a love of sport, music, art and drama; a skills commission, because every young person needs to leave education ready for work and ready for life; careers guidance in every school and work experience for every child, because each of us deserves to succeed at work, and Labour believes that the Government have a role to play in making that happen; and a curriculum in which we teach our children not just the past that they will inherit, but the future they will build, and in which they learn about the challenge of net zero and the climate emergency that we face.

It is precisely because we have a plan that we would enable our education system to deliver it. It is why we want an approach to how our schools are run that focuses on how children achieve and thrive, not the name on the uniform or the hours that they are there. It is why we have a determination to see childcare not as a passing, costly phase in the lives of others, but as the foundation of opportunity in the lives of every child and every parent.

As our children grow and as they interact more and more with my party’s proudest achievement to date, the national health service, it is sadly not the case that their experience of this Government’s record on public services improves. With health, as with education, there was a decade of failure even before the pandemic began. The national health service did not go into the pandemic strong, well-resourced and resilient. No, the NHS went into the pandemic with record waiting lists, 100,000 vacancies and 17,000 fewer beds than in 2010. As my hon. Friend the Member for Ilford North (Wes Streeting) has rightly said:

“It is not just that the Government did not fix the roof while the sun was shining; they dismantled the roof and removed the floorboards.”—[Official Report, 14 December 2021; Vol. 705, c. 954.]

Last autumn, the Government announced that they would raise tax to fund clearing the backlog and improving social care. The tax rise is happening during a cost of living crisis, sure enough, but it is not clear how they will manage the rest. That is why today, in our health service as in childcare, we are paying more but getting less. The Government are raising taxes on working people in the middle of a cost of living crisis, yet patients are expected to wait longer for care.

Conservative Members would do well to remember that NHS waiting lists are at a record 6 million. Ministers cannot blame the pandemic, because the figure was already at over 4 million before covid struck. Let us think of those millions of people waiting—waiting longer than ever before, often waiting in pain and discomfort, waiting while working or trying to find work, waiting while walking their children to school, waiting while trying to find somewhere affordable to live, waiting while looking after their grandchildren. They are waiting at a cost to themselves, of course, but at an astronomical cost to our country that is not just financial, but economic and social. They are waiting for their Government to give our public services the priority they deserve.

Mental health services are on the brink of collapse. In 12 years of Conservative Governments, a quarter of mental health beds have been cut, and right now 1.6 million people are waiting for mental health treatment. How on earth can any Minister defend that record? The Government’s approach to social care is up there with their failure on childcare: it is not fair, and it will not work. The less people have, the more they will take. Those with homes worth £150,000 will lose almost everything, while the wealthiest are protected.

It does not need to be this way. Labour will build an NHS fit for the future and get patients seen on time. We will provide the NHS with the staff, equipment and modern technology required so that the NHS is there for people when they need it. We will fix social care so that those in need do not go without. Our new deal for care workers will provide fair pay and secure contracts to plug the more than 100,000 vacancies in social care. We will transform training to improve standards of care. Across our public services, Labour will build a better Britain. We have done it before; we will do it again.

I remember a previous Conservative Government who cared little for the challenges that my family faced—a Government keener on judging my family than on supporting it. Then I saw, growing up and as a young woman, the difference that an incoming Labour Government made. I saw a Government who acted decisively to tackle disadvantage, cut child poverty and support families and children. A generation grew up with Sure Start and with children’s centres. A generation like me were supported after 16 with the education maintenance allowance and a level of investment in our NHS unmatched in history, with waiting lists driven down from months and years to days and weeks. I saw then, in my own community, the difference those changes made, and I still see it now in the better lives of young people who grew up with that advantage and the support it unlocked.

For 12 long years, Conservative Ministers have failed a generation of our children. Labour in power will be different, because we see Britain as its people—our children, our families, our future—and we will never swerve from making this country the best place to grow up and the best place to grow old.

[Madam Deputy Speaker (Dame Rosie Winterton)]

Nominations closed at 5 o’clock this afternoon for candidates for the post of Chair of the Backbench Business Committee. One nomination has been received. A ballot will therefore not be held. I congratulate Ian Mearns on his re-election as Chair of the Backbench Business Committee. [Hon. Members: “Hear, hear.”]

I remind hon. and right hon. Members of my stricture about sticking to five minutes, at least for the opening contributions from the Back Benches.

Budget Resolutions

Debate between Baroness Winterton of Doncaster and Bridget Phillipson

Tuesday 2nd November 2021 Commons Chamber

[Madam Deputy Speaker (Dame Rosie Winterton)]

Order. I am not sure that this discussion is entirely appropriate.

[Bridget Phillipson]

I will make a little progress, Madam Deputy Speaker. I will happily work with the hon. Gentleman. I know that he tries to work hard for his constituents.

Taxation (Post-transition Period) (Ways and Means)

Debate between Baroness Winterton of Doncaster and Bridget Phillipson

Ways and Means resolution & Ways and Means resolution: House of Commons
Tuesday 8th December 2020 Commons Chamber

[Madam Deputy Speaker (Dame Rosie Winterton)]

Order. Just a gentle reminder not to use the word “you” to the shadow Minister, because “you” means me.

[Bridget Phillipson]

In fact, I had just indicated that very point. Everyone on the Opposition Benches is delighted that the Government have in recent days managed to conclude a trade deal with North Macedonia, but what message does it send to our friends in the USA, who have made their position on this point very clear, that the Government no longer regard it as at all times non-negotiable that they will uphold the rule of law? It is because of our concerns on that point that we have tabled the selected amendment to the first resolution. We wish to append the text of the first resolution, at the end, with a clear limitation that provisions under that resolution may not place this country in breach of its obligations under law. The amendment would insert new text at the end of the current text of the first resolution to ensure that

“any such provision must not place the United Kingdom in breach of its obligations under the Agreement on the withdrawal of the United Kingdom of Great Britain and Northern Ireland from the European Union and the European Atomic Energy Community…and specifically its obligations under the Protocol on Ireland/Northern Ireland of that Agreement.”

Obviously, in the last two hours the Government have announced that they have reached an agreement in principle with the European Union on that protocol and will therefore resile from their expressed intention to enact legislation that would have breached those agreements. Of course, Opposition Members welcome that news, even as we find it astonishing that it should ever have been delivered and shambolic that it arrives so late. We would not, until this autumn, have ever imagined it necessary to make it clear in a resolution of the House that the Government, in exercising their powers, must obey international agreements into which they freely entered. Yet, as a result of the deep irresponsibility of the Government, that is precisely where we find ourselves today. We will not oppose the substantive resolutions, and we shall wait to see what further reassurances the Minister can provide before deciding whether to press our amendment to a vote.

We recognise that there needs to be a lawful basis for the collection of VAT, customs duties, aviation fuel duty and insurance premium tax, even while we do not yet know what the Government propose to table by way of a Bill. Let me repeat that: we do not yet know what the Government propose to table by way of a Bill—less than 24 hours before its Second Reading and Committee of the Whole House. Less than a month before we leave the European Union, we simply do not know with any certainty what measures the Government intend to set out. This extraordinary state of affairs undermines the ability of Members to give such important legislation the scrutiny it rightly deserves, not to mention the ability of businesses to plan. Is the Minister really telling us that it was not possible before today to set out the Government’s proposals on aviation fuel duty or insurance premium tax? Of course it was. These clauses were held back—they still are—so that the Government could, until a few hours ago, continue to brandish the threat of breaking international law as part of their negotiating tactics with the European Union, believing they have an ace up their sleeves, when in fact the whole world sees the Government as a pack of jokers.

Although we will not oppose these resolutions, we cannot and will not vote for any measures that the Government introduce that would breach agreements into which this country has entered with her friends and allies, because the consequences of such unlawful acts have been made clear to us. The Speaker of the United States House of Representatives said:

“The U.K. must respect the Northern Ireland Protocol as signed with the EU to ensure the free flow of goods across the border. If the U.K. violates that international treaty and Brexit undermines the Good Friday accord, there will be absolutely no chance of a U.S.-U.K. trade agreement passing the Congress.”

Finance Bill

Debate between Baroness Winterton of Doncaster and Bridget Phillipson

Report stage & Report: 2nd sitting & Report: 2nd sitting: House of Commons
Thursday 2nd July 2020 Commons Chamber

[Bridget Phillipson (Houghton and Sunderland South) (Lab)]

I beg to move, That the clause be read a Second time.

[Madam Deputy Speaker (Dame Rosie Winterton)]

With this it will be convenient to discuss the following:

New clause 2—Review of changes to entrepreneurs’ relief—

“(1) The Chancellor of the Exchequer must review the impact on investment in parts of the United Kingdom and regions of England of the changes made to entrepreneur’s relief by section 23 and Schedule 3 of this Act and lay a report of that review before the House of Commons within six months of the passing of this Act.

(2) A review under this section must consider the effects of the provisions on—

(a) business investment,

(b) employment, and

(c) productivity.

(3) In this section—

‘parts of the United Kingdom’ means—

(a) England,

(b) Scotland,

(c) Wales, and

(d) Northern Ireland;

and ‘regions of England’ has the same meaning as that used by the Office for National Statistics.”

This new clause would require a review of the impact on investment of the changes made to entrepreneurs’ relief.

New clause 4—Structures and buildings allowances: review—

“(1) The Chancellor of the Exchequer must review the impact on investment in parts of the United Kingdom and regions of England of the changes made by section 30 and Schedule 5 of this Act and lay a report of that review before the House of Commons within six months of the passing of this Act.

(2) A review under this section must consider the effects of the provisions on—

(a) business investment,

(b) employment,

(c) productivity, and

(d) energy efficiency.

(3) In this section—

‘parts of the United Kingdom’ means—

(a) England,

(b) Scotland,

(c) Wales, and

(d) Northern Ireland;

‘regions of England’ has the same meaning as that used by the Office for National Statistics.”

This new clause would require a review of the impact on investment of the changes made to structures and buildings allowances in Schedule 5.

New clause 17—Review of geographical effects of provisions of Sections 28 to 31—

“The Chancellor of the Exchequer must within twelve months of the passing of this Act lay before both Houses of Parliament a report assessing the differential geographical effects, broken down by nation and NUTS 1 statistical region, of the changes made by sections 28 to 31 of this Act.”

This new clause would require a geographical impact assessment of the clauses of the Bill relating to reliefs for business.

Amendment 1, in clause 36, page 34, line 29, at end insert—

“(13) The Chancellor of the Exchequer must, no later than 5 April 2021, lay before the House of Commons a report—

(a) analysing the fiscal and economic effects of Government relief under the Enterprise Investment Scheme since the inception of the Scheme, and the changes in those effects which it estimates will occur as a result of the provisions of this Section, in respect of;

(i) each NUTS 1 statistical region of England and England as a whole,

(ii) Scotland,

(iii) Wales, and

(iv) Northern Ireland;

(b) assessing how the Enterprise Investment Scheme is furthering efforts to mitigate climate change, and any differences in the benefit of this funding in respect of—

(i) each NUTS 1 statistical region of England and England as a whole,

(ii) Scotland,

(iii) Wales, and

(iv) Northern Ireland;

(c) evaluating the lessons that can be drawn from the effects of the Enterprise Investment Scheme with respect to the encouragement of both private and UK Government-backed venture capital funds in the devolved nations of the UK.”

This amendment would require the Chancellor of the Exchequer to analyse the impact of the existing EIS and the changes proposed in Clause 36 in terms of impact on the economy and geographical reach; to assess the EIS’s support for efforts to mitigate climate change; and to evaluate the Scheme’s lessons for the encouragement of UK Government-backed venture capital funds in the devolved nations.

[Bridget Phillipson]

New clause 27 calls on the Government to lay a review before Parliament considering all the tax reliefs within this Act, their effect on taxation revenue and the effectiveness of systems to evaluate these reliefs and to ensure value for money. We know that there are real problems with how the Government monitor tax reliefs. Thanks to the outstanding work of the National Audit Office and its report from February this year, we can see how unwieldy the system has become over the past decade and how much this is costing the public purse. It shows that there are currently 362 tax reliefs, which support Government economic and social objectives. This is a huge financial undertaking. The cost of tax reliefs for 2018-19 is estimated to be £155 billion.

The National Audit Office notes that this is not money that would simply be recouped in tax if these reliefs were abolished, but that is not the point that we are seeking to make. We on the Opposition Benches do not doubt that sometimes the outcomes from tax reliefs can be positive and that they can drive positive social and economic behaviour. The problem, as the NAO’s report makes plainly clear, is that we simply do not know enough about this, because the Government are failing to properly monitor and evaluate their effectiveness.

Of the 362 tax reliefs, only 111 have been costed by Her Majesty’s Revenue and Customs, and only 15 have had published evaluations since 2015. At the same time, on the Government’s watch, their cost has been rising since 2010. In normal times, such an enormous cost, without corresponding effective oversight, would be an area of real concern. As the Office for Budget Responsibility identified in July 2019, tax reliefs are considered to be a new fiscal risk to public finances, due to the Government’s not knowing their full cost and the lack of transparency built into the system. But of course we are not in normal times; we are living through an incredible economic crisis. The lack of effective monitoring and evaluation is hard to justify when our public services are under such enormous strain. The inattention shown by Ministers over the past decade must change and we need a much greater focus on ensuring value for money.

In Committee, we touched on one area where I ask the Minister to respond further today, namely the social investment tax relief, an area also pressed by my hon. Friend the Member for Ilford North (Wes Streeting) and my Front-Bench colleague my hon. Friend the Member for Liverpool, Walton (Dan Carden). What further consideration has the Minister given to extending this relief from April 2021 to April 2023? Will he update us on what further consideration the Treasury has given to this arising from discussions we held in Committee? This important aspect has been raised by many charities. I know that the Minister is sympathetic to the concerns they raise and I am sure they will be grateful for any further updates he might be able to provide in this area.

Our new clause paves the way for a greater focus on value for money, by establishing a more systematic and transparent way for the Government to evaluate the cost of tax reliefs and to empower Parliament to scrutinise this more effectively. The limiting scope for amendments to the Finance Bill set by the Government means that we have been able to opt only for a review of the tax reliefs contained in the Bill. Many changes to tax reliefs—for instance, on the entrepreneurs’ relief and the annual allowance—will potentially have a significant impact on tax revenues. In other areas, there are concerns about whether tax reliefs are being abused.

TaxWatch UK has highlighted particular concerns about the future of research and development tax credits, given the evidence of abuse in recent years. It is therefore right that there is greater transparency and that Parliament can properly scrutinise whether the measures proposed by Government are having their intended effect. The Minister attempted to address some of these concerns in Committee, saying that the Government kept all these reliefs under review and that he has proposed a more systematic evaluation programme for tax reliefs. We would welcome any progress towards such a system. However, if the picture was so rosy, I doubt whether the National Audit Office would have painted such a concerning picture in its report. I also look forward to the Public Accounts Committee’s report on this issue to find out whether it agrees with his assessment or what further insight it might be able to offer.

None the less, this amendment attempts to get to a wider point, which is that Parliament currently has few proper and meaningful opportunities to scrutinise tax reliefs on an ongoing basis. The Minister will know of the 2017 joint report by the Institute for Fiscal Studies, the Institute for Government and the Chartered Institute of Taxation entitled “Better Budgets: Making tax policy better”. It states that the information publicly available to Parliament on the costs and benefits of tax expenditure is not sufficient for it to assess their value for money, pointing out:

“Although taxes constitute almost 40% of national income, Parliament has little standing support to help look at tax legislation, support general inquiries on tax issues or help with post-implementation reviews.”

The report had a clear recommendation:

“Increase support to Parliament on tax issues”.

That means going beyond the support currently available and the opportunities that exist, in Finance Bill Committees, through the Treasury Committee, through Public Accounts Committee and through other work in this House, and instead embedding a proper system so we can assess the value for money of past tax measures. That is hardly controversial. As the Resolution Foundation points out, the Governments of Canada, Australia and New Zealand produce annual tax expenditure statements, which can be accompanied by parliamentary debate.

We want to see improved scrutiny of whether money is being well spent, to ensure that the system is fair and helps those who need it most. When all the benefits and tax reliefs are taken into consideration, the Government provide more support to the richest fifth of non-retired households than to the poorest fifth, and that gap has grown since 2010. This is in part due to the system of tax reliefs that has flourished under this Government and previous Conservative Governments and is clearly not based on any genuine notion of fairness.

Today, as we grapple with the looming jobs crisis, the question of fairness is paramount. We need to create a recovery from coronavirus that benefits everyone in our society, from young to old and right across every region and nation. The Opposition do not doubt the scale of the challenge. Our public finances are enormously stretched, our public services have been pushed to the brink by the pandemic, and there is a risk of unemployment on a scale not seen since the 1980s. We have yet to hear anything about the economic support package that we need: a back-to-work Budget to help those at the sharp end of the looming jobs crisis—a Budget that creates jobs, supports people back into work and properly invests in our young people so that they have the opportunities they deserve at this challenging time.

--- Later in debate ---

[Bridget Phillipson]

We do not intend to divide the House on the new clause, but I will make a few brief points in response to what the Minister has said. I am glad that he shares our assessment that the current situation and system are unwieldy, and therefore we look forward to seeing real progress in that area. Frankly, it is not good enough that of those 362 tax reliefs, only 15 have had published evaluations since 2015, at a time when costs have risen.

During these extraordinary times, we need to see much more from the Government, not just on tackling tax avoidance, as we discussed at some length yesterday. There needs to be a renewed focus on taxpayer value for money, with greater opportunities for scrutiny of tax reliefs in this place and from external experts. Although we are not seeking to divide the House, I hope that we will see progress in that area. It is an issue to which we intend to return. I beg to ask leave to withdraw the motion.

Clause, by leave, withdrawn.

[Madam Deputy Speaker (Dame Rosie Winterton)]

We will have a three-minute suspension.

Finance Bill

Debate between Baroness Winterton of Doncaster and Bridget Phillipson

Report stage & Report stage: House of Commons & Report: 1st sitting & Report: 1st sitting: House of Commons
Wednesday 1st July 2020 Commons Chamber

[Bridget Phillipson]

Having listened to the debate, we are keen to see greater scrutiny and transparency in this area, so I seek to press the amendment to a Division.

Question put, That the amendment be made.

The House proceeded to a Division.

[Madam Deputy Speaker (Dame Rosie Winterton)]

I ask all hon. Members, other than Front Benchers and Tellers, to leave the Chamber by the doors behind me. Members should join the queues to vote in Westminster Hall. To vote, Members should enter the Lobby and swipe their pass on one of the pass readers. I remind Members that the Lobby doors will be locked after 12 minutes.