Economic Update

Sammy Wilson Excerpts

Wednesday 8th July 2020 Commons Chamber

[Rishi Sunak]

I thank my right hon. Friend for his kind support and also his advice. He is of course absolutely right, and I hope that he was heartened by what he heard me say in the statement about the importance of returning our public finances to a sustainable footing in the medium term. We can and will do exactly that. He is right to highlight the sensitivity of our debt to interest rates, which was why he was right to introduce into our fiscal framework the notion of an interest service rule, and that is something that I will look at keenly in the coming months.

[Sammy Wilson (East Antrim) (DUP)]

I welcome the announcements that the Chancellor has made today to undo some of the economic damage caused by the actions taken to deal with the health crisis. I echo his point that these measures benefit places such as Northern Ireland only because we are part of the fifth biggest economy in the world and we have the umbrella of the UK to protect us against these economic crises. I am sure that the hospitality industry will welcome the measures that he has announced today, although they are quite time-limited. Clothes shops might welcome similar measures as well, because once we have eaten our way through a month’s half-price meals, we might need to visit them!

Other sectors that are important to Northern Ireland in terms of their export potential, high-value jobs, tourism and connectivity with the rest of the United Kingdom are the aerospace and aviation sectors, but there has been no mention of those sectors today. The Chancellor has said that these are the first of his steps, so I hope that we will quickly see some action taken to deal with those areas.

[Rishi Sunak]

I am grateful for the right hon. Gentleman’s support. Perhaps alongside the “eat out to help out” scheme, we can make progress on reopening our gyms, to deal with that side of the equation at the same time. He is absolutely right to suggest that airlines and aviation are experiencing a difficult period. I remain in close contact with the industry and with individual companies to understand what is happening, and if there are things that we can and should do, of course we will.

Finance Bill

Sammy Wilson Excerpts

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

[Bridget Phillipson]

Amendments 18 and 19 would require the Treasury to conduct a review of the digital services tax within a year of Royal Assent and to report to Parliament on the tax annually thereafter with a specific consideration of the effect of this measure on taxation revenue.

We welcome the introduction of the digital services tax, although this support is qualified. The Minister will be well aware that we like to be thorough even with proposals that we broadly welcome. It is deeply disappointing that it has not been possible to reach multinational international agreement, hence the need for this unilateral approach. This Government should demonstrate much more leadership in pressing for international efforts to tackle this scourge. Ensuring that companies that operate across national borders pay the tax that they should requires us to co-operate, to lead, to persuade, to negotiate and to set an example.

More troubling is the fact that, in the crisis we are living through today, when ambitious and decisive action is demanded of Government, Ministers have only managed to put forward such a modest measure, when other countries are willing to go further. Many of the companies that will be affected by this tax are the same ones that will have benefited from the impact of covid-19. Before the pandemic struck, they were the beneficiaries of an uneven playing field, while much loved high street businesses struggled.

Local firms and UK chains have faced a real battle competing with companies that base themselves overseas, do not have the same overheads as physical shops and go to great lengths to minimise their tax liabilities. The impact of lockdown has only exacerbated this tension. It has provided an unexpected boon to tech giants, which have managed to rake it in as demand soars and business is directed online. Meanwhile, our high street businesses, which were already struggling, have only seen their worries increase as footfall has understandably plummeted.

Even with the easing of lockdown, there is a real challenge ahead in ensuring the continued success of our bricks-and-mortar retail sector. If shoppers will not venture on to our high streets and the Government fail to provide an effective test, track and isolate system, many businesses that are just starting to open up will soon be forced to close their doors again, perhaps even permanently. These businesses are the bedrock of our communities. They help create a sense of place, and are often a lifeline for older and vulnerable residents and for those in more isolated communities. Government must do more to ensure that there is a level playing field, and that those who have benefited the most from this situation—as I have noted, those that have not exactly paid their fair share in the past—make more of a contribution to the national effort.

[Sammy Wilson (East Antrim) (DUP)]

Does the hon. Member accept that not only is it right that the Government intervene to ensure that taxes are paid on a level playing field, but that, at a time when public finances are under pressure, we should not be allowing large firms to escape paying the tax revenue that is due and should be paid?

[Bridget Phillipson]

The right hon. Gentleman is absolutely right, and I sincerely hope that the Minister will respond to that point, because we have seen this unfairness built into our system. We recognise that this measure takes some steps towards levelling the playing field, but we need to see much more from Government in clamping down on the kind of tax avoidance that we have seen far too often in recent years, because it is not right.

--- Later in debate ---

[Mr Mitchell]

Yes, the extractive industry transparency initiative, which has been led by a former Member of this House, Clare Short, for some time, did a huge amount of good as, of course, have open registers, because open registers have continued that agenda of transparency. As I said at the outset, this agenda was championed and driven forward internationally through the British at the G8.

[Sammy Wilson]

I agree with all the points that the right hon. Gentleman has been making. Does he accept that unless we can dig behind the accounts to see where companies, for example, inflate costs in countries where they can get lower tax rates and deflate costs in countries with higher tax rates, a tax strategy in itself is simply not going to ensure that we get behind how companies avoid paying tax in the countries where they earn the profits?

[Mr Mitchell]

There is an important principle: while commercial confidentiality should not be compromised, we should move to greater transparency to tackle the problems that lie behind what the right hon. Gentleman is saying. I agree with that and I think that there is common cause across the House that that is what we want to do. Clearly, getting a multinational standard will be the right result, but these things have to be led.

In summary, the new clause is part of the noble campaign that is supported across the House, to shine a light on the profit shifting, transfer pricing and tax haven abuse that is used to minimise tax liabilities. The House has already voted in favour of public country-by-country reporting through an amendment to the Finance Bill in 2016, which gave the Treasury the power to make the information public. My right hon. Friend the Financial Secretary will no doubt rely on the prayer of St Augustine, “O Lord, make me chaste, but not yet,” and argue that the UK would not want to implement this reform unilaterally, and he has already acknowledged, in a letter to the right hon. Member for Barking (Dame Margaret Hodge) dated 27 February this year, that a multinational agreement to do country-by-country reporting would be a good achievement, but I put it to him that that is too timid an approach.

As we contemplate Britain’s role post Brexit and we set out what we mean by global Britain, let my right hon. Friend stand tall, show leadership internationally, and follow the proud, confident example of David Cameron and George Osborne. Let global Britain lead by example, to the huge benefit of our domestic taxpayers and taxes, and for those in the poorest countries, whose mineral wealth is so often developed without their citizens reaping the benefits they should receive and that they deserve. This reform would be in the finest traditions of Britain’s past international development leadership, and I commend the new clause to the House.

Covid-19

Sammy Wilson Excerpts

Monday 11th May 2020 Commons Chamber

[Sammy Wilson (East Antrim) (DUP) [V]]

May I, on behalf of my party, express our sympathies to those who have lost loved ones during this health crisis, and to those in the health service who have, manfully and womanfully, worked hard to ensure that lives are saved?

We welcome the Government’s measures, and the announcements made in the Chamber today and by the Prime Minister last night. It is, of course, very difficult to balance the economic needs of the country with the imperative to safeguard people’s health. With hindsight, many people might criticise some of the things that the Government have done, but I believe that the decisions that were taken have had success in reducing the death toll and helping many businesses to survive, and we welcome many of the measures to be introduced.

I believe that dealing with the virus and how we get out of lockdown should be approached on a UK-wide basis. Of course there are going to be different nuances and conditions in different regions of the United Kingdom. For example, in Northern Ireland we have a different school year from other parts of the United Kingdom, so some of the education measures may well be different. The peak of the virus is also different in different regions, so that may lead to different timings. Nevertheless, a UK-wide approach is important.

A number of Members have already mentioned the fact that we share a common border with the Irish Republic. Surprisingly, despite the Good Friday agreement and the emphasis that the Irish Government have placed on it, at every step of this crisis they have not consulted the Administration in Stormont. When they had the lockdown, they did not consult. When they relaxed some of their measures, they did not consult. They are even taking a different approach to quarantining people who come in from outside Ireland and would eventually finish up in the United Kingdom. I think it is important that we have a UK-wide approach. We appreciate the co-operation that there has been on a weekly basis with the Administration in Stormont by Westminster.

Looking forward is the important thing, because many businesses are concerned about what happens when the lockdown stops and this situation finishes. We see a number of issues. First, there has to be no cliff edge, but a tapering of the job retention scheme, which has been so vital to ensuring that workers have some money on which they can live and that employers do not have to lay off vital workers and then have to recruit them again.

Secondly, various sectors of the economy have been hit far more than others. Tourism in Northern Ireland is an important sector of the economy, and it will take some time for it to ramp up. It is important that we look at sectoral support.

Thirdly, many companies have already taken on additional debt through the bounce back loans and the coronavirus business interruption loan scheme, but they are debt-heavy, and there needs to be some reconsideration of how that leverage is reduced and debt replaced with equity. The banks have an important role to play in that, and I hope the Government will work with the banks. It is important that we work our way out of this together. I will finish, because I see you are rising to your feet, Madam Deputy Speaker.

Economic Update

Sammy Wilson Excerpts

Tuesday 17th March 2020 Commons Chamber

[Rishi Sunak]

I can confirm to my hon. Friend that the loans available already will be available to those who are self-employed and that many of them, those who do have small properties, will benefit from the business rate reliefs and grants too.

[Sammy Wilson (East Antrim) (DUP)]

My party also wishes to work with the Government on ensuring that we get through this crisis as easily as we can. Redundancies are already starting across a range of industries in Northern Ireland. It is important that if the Chancellor is coming with the next step, it addresses the issue of how we keep people in employment and how firms are supported. I understand that he wants to get this right, but he also has to get it done.

[Rishi Sunak]

I can tell the right hon. Gentleman that we will get it done, we will do it at pace and we very much agree that it is important to protect people’s jobs. That is the security we want to provide.

Oral Answers to Questions

Sammy Wilson Excerpts

Tuesday 11th February 2020 Commons Chamber

[Rishi Sunak]

I am a passionate believer in improving east-west connectivity across the north. I am pleased to say that I met the leader of Bradford Council just the other week. Bradford has an exciting future as one of the younger cities in the country. I believe that the plans that NPR has put forward include Bradford. We are happy to look at those. Transport for the North is actively engaging with local stakeholders on the various routes for improving connectivity between Manchester and Leeds, and that includes Bradford city centre.

[Sammy Wilson (East Antrim) (DUP)]

What progress has been made on the feasibility study on a bridge between Northern Ireland and Scotland, as promised by the Prime Minister? More immediately, have there been any discussions with the Scottish Government on the upgrading of the A75—an important road link to Northern Ireland and important to the economic corridor in south-west Scotland?

[Rishi Sunak]

The Prime Minister is passionate about improving connectivity across the United Kingdom. As my right hon. Friend the Member for East Antrim (Sammy Wilson) will know, that is one particular project that the Prime Minister has expressed interest in and he can assume that we are busy at work fleshing out what it might look like.

Motorhomes and Vehicle Excise Duty

Sammy Wilson Excerpts

Tuesday 21st January 2020 Westminster Hall

[Ruth Jones]

Absolutely, and the hon. Gentleman makes that point very clearly. I will come on to the importance of staycations in this country now.

[Sammy Wilson (East Antrim) (DUP)]

Does the hon. Lady agree that because motorhomes are used on average for only 31 days each year, a tax of £70 a day is not likely to produce the kind of result that she is talking about?

[Ruth Jones]

Absolutely, and the right hon. Gentleman must have read my speech because I will come on to that very point later.

What happens to staycationing locations across the UK that will lose income and tax revenue because of these proposals? Have the Government completed any studies on this issue? What do they propose to do for people who lose their jobs in the tourism sector because of this arrangement?

We know that staycations stop people from getting on planes, which damage our air, or taking cruises, which damage our marine ecosystems and pollute our waters. So, by holidaying at home, we see lower levels of greenhouse gas emissions and thus less pressure is put on our environment.

The increase in taxation is already having a significant impact on the staycation industry. Unlike the car industry, the motorhome sector saw modest growth year on year up to September 2019, when it recorded a fall of over 7%. That was the very month that the increase came into effect.

I would like the Minister to explain why the Government are penalising 15,000 motorhome-owners, who all contribute to our domestic tourism industry and only use their motorhomes for leisure purposes for about 30-odd days a year, as we have already heard. The policy cannot be about reducing air pollution levels, because if it was, the Government would have a more thought-through and logical approach.

--- Later in debate ---

[Sammy Wilson]

Does the Minister accept that it is not the percentage of the purchase cost that is important but the running costs per year? If a vehicle is being used on the road an average of 3,000 miles a year, a duty of more than £2,000—nearly 60p or 70p a mile—is a substantial increase in its running costs.

[Mr Clarke]

The right hon. Gentleman raised the issue with me in the House at Treasury questions. He is obviously very committed to ensuring that we look at it again. Of course, VED is a one-off expense that is paid at the point of purchase; it does not accrue to the running costs per se. The way in which we tax that is through fuel duty. If someone drives more miles, they will pay more fuel duty. That is the real correlation and link. However, I recognise that, if people do not use the vehicles a great deal during the course of any given year, VED represents a substantial one-off cost in the first year of operation.

Oral Answers to Questions

Sammy Wilson Excerpts

Tuesday 7th January 2020 Commons Chamber

[Mr Clarke]

My right hon. Friend stands up with a positively lengthy question. As he knows, I share his enthusiasm for escaping certain EU regulations when we leave the EU on 31 January. We are, however, convinced of the need to incentivise the reductions in our transport emissions that I have referred to, which represent a third of the UK’s total CO₂ output.

[Sammy Wilson (East Antrim) (DUP)]

Does the Minister think that this green tax, which has increased vehicle duty by 1,000% for many motorhomes—which are used, on average, for 31 days per year and do about 2,000 miles per year—is fair, and will he review it?

[Mr Clarke]

The figure of 1,000% is somewhat misleading. Only motorhomes with the very highest emissions would fall into that category, and the extra VED applies only in the first year. But of course we keep all taxes under review. I am sensitive to the concerns of the industry; clearly, a significant number of jobs are supported by it. As always, we keep these things under a watching brief.