Finance Bill

Stephen Kerr Excerpts

Tuesday 12th September 2017 Commons Chamber

[Stephen Kerr (Stirling) (Con)]

There should be a relationship between risk and reward, should there not? It is a delicate balance. What is my hon. Friend’s view on whether the balance is right in the measures before us?

[Kit Malthouse]

I was about to come to that. The rise in taxation on dividend says something about how we treat the proceeds of risk. The argument has always been that dividends should be taxed less than income to recognise that risk. More times than not, if someone invests in a company, they lose their money. In some spheres, such as life sciences—a specialist area of mine—nine times out of 10 they lose their money. If someone invests in a drug discovery company, it is quasi-charitable giving—nine times out of time, they are giving to the economy for the good of their health, hopefully. The notion that dividends should be taxed just like every other income starts to erode the idea that as a Government and a society we want to reward risk taking.

In future Budgets, I hope that Chancellors will find a way to re-instil the sense in ordinary working people that they should think about starting and building their own business. Sadly, over the last couple of years, the number of people contemplating starting their own business has dropped. A couple of years ago, it was about 39% to 40%; according to the latest survey, it is now only about 14%, and the single largest barrier that puts them off is access to capital—the ability to get the money to start a business.

Public Sector Pay Cap

Stephen Kerr Excerpts

Wednesday 5th July 2017 Commons Chamber

[Elizabeth Truss]

Those firefighters, police and others in the emergency services have done a tremendous job, and I am sure we are all extremely grateful to them for regularly putting themselves on the line of danger. The hon. Gentleman is right to point that out.

What does productivity mean? I talked earlier about empowering people on the frontline to be able to make decisions and do things more quickly. When I talk to nurses and teachers, they sometimes say that they want less bureaucracy so that they can get on with the real jobs that they have been employed to do, and that is why more police are spending more time on the frontline. Productivity means giving people more job satisfaction—spending more of their time doing the job that they have come in to public services to do—and that is why we are reforming public services and seeing improvements.

[Stephen Kerr (Stirling) (Con)]

Does my right hon. Friend agree that it is vital that the Government should continue to balance fairness for public servants and fairness for taxpayers who pay for public services?

[Elizabeth Truss]

We need to ensure a continual balance in being fair to the people working in public services—giving them the training and opportunities they deserve, and paying them fairly—while at the same time making sure that they will be able to continue to work in those public services in the future. If we look at what happened in Greece when the deficit got out of control, we can see that there was a 36% reduction in spending on the health service. [Interruption.] Members on the Opposition Front Bench may groan, but they should look at the facts about what happens when unfunded spending commitments are made. Let us be clear: the Institute for Fiscal Studies has said that Labour’s spending plans would lead to the highest levels of taxation we have ever seen in peacetime Britain. Theirs are not moderate but extreme proposals that would lead to people losing their jobs.