HMRC Estate

Lord Elliott of Ballinamallard Excerpts

Tuesday 10th January 2017 Commons Chamber

[Jane Ellison]

The last question is difficult to answer because ultimately individuals will decide what is right for them at the time when the facts of a possible move are known. A great deal of support is being put in place to help them either make the choice about moving or move to other jobs. I have had the chance to speak not just to managers managing this programme, but people affected by it on the frontline, when some of them attended an event in London a few months ago. The HMRC human resources department is working closely with the DWP because there are some opportunities for people to move between Departments. However, on the specifics of the hon. Gentleman’s local office, I am afraid it is not easy to give an answer until more is known about what the actual move would be and the numbers affected.

[Tom Elliott (Fermanagh and South Tyrone) (UUP)]

The vast majority of staff in the HMRC office in Enniskillen in my constituency will be closer to two hours’ journey time from the proposed new location than one hour. Does the Minister not see merit in the NAO report suggesting she should step back from the proposals?

[Jane Ellison]

As I have said, it is the nature of responding to an urgent question that one has not had a chance to look at the whole report and reflect on it, but HMRC will of course respond to it. Its chief executive is coming to the Public Accounts Committee fairly imminently and I imagine this is likely to be raised by the Committee. Of course we will look at this report—it is important, and we will look at what it says—but the central reasons that drive these plans still stand: modernising our estate, providing a service to the customer that reflects modern life and making sure the working environment for staff and the career progression open to them are the best they can be.

Autumn Statement

Lord Elliott of Ballinamallard Excerpts

Wednesday 23rd November 2016 Commons Chamber

[Mr Hammond]

I have announced today that the UK loan guarantee scheme will be extended until at least 2016. It has a very significant amount of headroom; I think the cap on it at the moment is £40 billion, and we are nowhere near using up that capacity. The important thing about the UK loan guarantee scheme is that it underpins projects at an early stage. Many projects have gone ahead without loan guarantees, but because they had a commitment on the loan guarantee they were able to proceed and then eventually were able to get funding without it. It is playing a very important role that is understated by the measure of guarantees actually issued.

[Tom Elliott (Fermanagh and South Tyrone) (UUP)]

On the shale wealth fund, is the £1 billion totally Treasury money or is some of it coming from the companies that will be developing the shale gas project?

[Mr Hammond]

It is money coming from the companies.

Concentrix: Tax Credit Claimants

Lord Elliott of Ballinamallard Excerpts

Tuesday 18th October 2016 Westminster Hall

[Peter Dowd (Bootle) (Lab)]

It is a pleasure to serve under your stewardship, Mr Nuttall. I start by thanking my right hon. Friend the Member for Slough (Fiona Mactaggart) for enabling Members to consider this matter, as well as hon. Members from across the House who have attended and spoken. I counted 24 interventions or speeches, and there was a theme in the words that were used time and again—words such as “shameful”, “shocking”, “distressing”, “desperation”, “anger” and “despair”.

Like other hon. Members, I have received many letters and phone calls from constituents who, to their shock and bewilderment, have found their child tax credits stopped, with little explanation and with few avenues of recourse. Under the Government’s contract with Concentrix, thousands of innocent mothers—the vast majority are working mothers—were in effect branded fraudsters and cheats. At the drop of a hat, they saw money that they desperately needed for their children taken away, notwithstanding their entitlement to it. Yet the company is not solely at fault—the Government are, too. Despite the protestations that the Minister will no doubt make today, the Government gave Concentrix a contract that was a licence to harass and was open to abuse. It does not take Sherlock Holmes to work out that if a company is paid commission to find tax credit error and fraud, it will start with the easy targets so as to turn an even easier profit.

What is more shocking is that the victims, which is what they are, did not have the means of fighting back. They were disfranchised. Hon. Members have spoken of their need to intervene personally in many cases to get movement. The whole process was deeply flawed and, as has been suggested, operated on the presumption that people were guilty until proven innocent—a concept completely alien and contradictory to our values, and our sense of justice, fairness and decency.

Under the system, the occupant of a household was sent a letter by Concentrix accusing them of not meeting the standards for child tax credit. The letter demanded that they get in touch to present evidence of their living arrangements. Having received the letter, some constituents attempted to call Concentrix, only to find the number busy, a point that has also been made. When Concentrix did not hear back from the person, who may not have received the letter in the first place, another letter was summarily sent, stopping tax credit payments. As far as I am aware, at no point was a Government Minister consulted or asked to sign off the process—can the Minister tell us otherwise? Instead, a private foreign company, whose sole interest was profit, was allowed to withdraw tax credits on behalf of the British Government. That is what makes the contract so unique: the vast power Concentrix had to act on putative information.

Jon Thompson, the chief executive of HMRC, confirms that in this novel approach, it was the first time such checks had been carried out by an external provider. Even Atos did not have the power to withdraw benefits. Concentrix had carte blanche. The Government were in fact planning to renew the contract for a job well done. They did not care to ask why Concentrix had so many savings on its books, or to listen to the complaints of many of our constituents. It was the Labour party that originally called the National Audit Office to investigate and the Labour party that has pushed for oversight and demanded action for the thousands of families who have still not received repayments from Concentrix.

We see the austerity cuts hitting women hardest, and the Government changing women’s pension age. Now we see the Government contracting private companies to take away money from single working mothers. We cannot help but ask what this Government have against women. What do they have against hard-working single mothers? It comes down to a lack of care. In essence, the Government are happy to outsource important processes affecting people’s lives to private corporations to make a profit. So be it, but not without the proper checks and balances being in place.

[Tom Elliott (Fermanagh and South Tyrone) (UUP)]

The hon. Gentleman has focused on the failures of Concentrix. Although many of us will accept some of his points, does he also accept that the main focus of the difficulties is HMRC and how it managed the contract?

[Peter Dowd]

The hon. Gentleman makes a fair point that needs to be looked at.

When all is said and done, this is a question of the performance management of a Government contractor, and a clear lack of oversight by the Government. On behalf of the many people affected by the debacle, I would like to performance-manage the Minister by asking the following questions. First, who was overseeing Concentrix’s contract? Secondly, how was the oversight conducted? Thirdly, how often was it reviewed? Fourthly, what were the penalties for mismanagement of the contract? Fifthly, when did the penalties kick in? Sixthly, what penalties are left on the contract? Seventhly, will Concentrix be paying back any money to the Government? Eighthly, how many people have been affected? Ninthly, what actions have the Government taken proactively to compensate those people? Tenthly, have the Government sent out formal apologies to those affected? And finally, when will the last person who has had their child tax credit withdrawn receive repayment? Those key questions need to be answered and acted on. We do not want any shilly-shallying from the Government.

Centenary of the Battle of the Somme

Lord Elliott of Ballinamallard Excerpts

Wednesday 29th June 2016 Commons Chamber

[Sir Jeffrey M. Donaldson]

I thank my right hon. Friend for his very kind words. It is not just me but my colleagues from many parts of civil society in Northern Ireland who have come together to undertake excellent work to ensure that the centenary commemorations are inclusive—they have been, as the hon. Member for South West Wiltshire has reminded us—and that they embrace people from right across the community. I have had the pleasure of attending events in Northern Ireland in which people from all sections of the community have taken part. I have attended services, for example, at Lisburn cathedral in my constituency, when we marked the centenary of Gallipoli. We had the Speaker of the Northern Ireland Assembly, a member of Sinn Féin, lay a wreath in the cathedral in remembrance of the men from the island who died in that battle.

[Tom Elliott (Fermanagh and South Tyrone) (UUP)]

I totally accept the right hon. Gentleman’s purpose and what he is saying. Does he accept that in 1916 there was huge turmoil in Ireland, which was under the United Kingdom at the time—we had one country in Ireland? Does he accept that the Irish Government have now taken on their responsibilities and role, and that they recognise the soldiers who died at the Somme and in other battles, which they did not do for many years? They deserve some credit for that.

[Sir Jeffrey M. Donaldson]

Indeed. I echo the hon. Gentleman’s comments. It has been a pleasure to work with the Irish Government. We have organised and hosted a number of joint events commemorating soldiers from right across the island of Ireland. I will be back in Glasnevin cemetery in July, where some more of the Victoria Cross stones will be unveiled for soldiers who died. They lie in the shadow of the cross of sacrifice in Glasnevin cemetery. I commend the Irish Government for the way in which they have embraced the centenary of the first world war. The events that they have organised have been most appropriate and inclusive.

The Economy and Work

Lord Elliott of Ballinamallard Excerpts

Thursday 26th May 2016 Commons Chamber

[Tom Elliott (Fermanagh and South Tyrone) (UUP)]

It is a pleasure to follow the hon. Member for Ellesmere Port and Neston (Justin Madders).

Rural broadband is a key issue and it has been raised by Conservative Members. I know that broadband is an issue in some urban areas as well, but it would help the rural economy significantly. It will not address the farming crisis that some Members have mentioned—the hon. Member for Brecon and Radnorshire (Chris Davies) highlighted a number of difficulties in the agricultural sector—but it will help bring better perspective to the rural community and to farmers in particular.

On the anti-corruption summit, Her Majesty’s Speech said that

“legislation will be introduced to tackle corruption, money laundering and tax evasion.”

I hope that that works in Northern Ireland, because we have a huge problem with fuel laundering and smuggling, and Her Majesty’s Revenue and Customs does not seem to be getting to the root of it. It is almost an economy—an illegal economy—in itself, but it exists in Northern Ireland and we really need to grapple with it. I ask the Government to provide more powers to the National Crime Agency in Northern Ireland so that it, rather than HMRC, can be the lead partner. That would be hugely beneficial and productive.

I do not have much time, but I want to touch quickly on the proposed adoption legislation, about which I speak from a personal perspective. It is vital that additional legislation is promoted to help all these young people and to give them a fair and equal chance. Education legislation has also been proposed, and I make a plea for co-operation between the education authorities and those who will be responsible for the adoption provisions. Adoptive kids are sometimes short-changed by the education sector, because those involved in it are not fully aware of the needs of adoptive and looked-after children.

I welcome the proposed adoption legislation, although I know that it will apply only to England because it is a devolved matter. Northern Ireland does not even have adoption legislation—we still rely on a children’s order. I do not know about the other devolved regions, but there is a huge gap in the legislation in Northern Ireland. These young people need the best start possible in life, and one way of doing that is to provide facilities and support, by which I mean not just assessments, but action by local authorities.

HMRC: Building our Future Plan

Lord Elliott of Ballinamallard Excerpts

Thursday 28th April 2016 Commons Chamber

[Tom Elliott (Fermanagh and South Tyrone) (UUP)]

I will certainly stick to five minutes, Mr Deputy Speaker.

I thank the hon. Member for Glasgow South West (Chris Stephens) for securing this debate. I heard the intervention from his colleague, the hon. Member for Glasgow North (Patrick Grady), about Scottish independence. He will forgive me if I do not agree with him, but that is a debate for another day.

It is difficult to follow the logic of the Government’s decision to close HMRC offices. In Northern Ireland, six offices are to close and everything is to be centralised in one office in Belfast. The office in my constituency is in Enniskillen. To anyone who thinks that people could easily relocate to Belfast from Enniskillen or surrounding areas, I point out that it is at least an 80-mile journey—in some cases, a 100-mile journey—to the office in Belfast. It is impractical, even impossible, for relocation.

I cannot follow the logic, particularly given that Northern Ireland is the one area of the UK with a land border with another EU state. HMRC is vital, especially in places such as Northern Ireland, where the smuggling of illegal fuel is a huge business. That major issue cannot be dealt with from just one office. We have to look at this in a more practical and sensible way. The end result of the closures will be a loss of jobs and services to the community. HMRC, not the Police Service of Northern Ireland, has the lead in dealing with smuggled and laundered fuel in Northern Ireland. How will it do that away from the border areas it is supposed to work in?

Another significant impact will be the loss of help desks—some offices have already lost them. It is a major blow to communities. I will cite one example, around foster and kinship carers, who now must register as self-employed. These people, providing a vital service to our community, do not want to be tied up with form filling and filling in tax returns every year. They might have to pay an accountant. Apologies to any accountants here but I do not have to tell Members the prices they charge. These people do not need that. Yes, the service is available online, but not everyone can use it online.

We hear about the telephone help desk. The Minister tells me that HMRC’s telephone communication service is an increasing choice for inquiries. Well, why would it not be, if it is the only choice? He also tells me that HMRC is improving the telephone service and that it now answers 80% of calls. What happened to the other 20%? He also tells me that the average queue time is 12 minutes, so I guess that some people wait 20 minutes, and probably some of them hang up. If that is the best we can do, for a front-line service, it is extremely poor and makes the argument, which I and my colleagues are making, that we should keep the offices and the front-line desks to help and support the community.

Oral Answers to Questions

Lord Elliott of Ballinamallard Excerpts

Tuesday 19th April 2016 Commons Chamber

[Damian Hinds]

The national funding formula will address historical unfairness. As now, school budgets will be set on the basis of the pupil census in the October prior to the start of the funding year, giving schools the certainty they need. The Department’s consultation also proposes to include a new factor to recognise in-year growth, targeting funding to schools with significant increases in pupil numbers.

[Tom Elliott (Fermanagh and South Tyrone) (UUP)]

Nobody has ever accused me of a lack of stamina, Mr Speaker. Am I right and accurate in my assessment that LIBOR funds can be used only for charitable purposes and will not go to a Department?

[The Chief Secretary to the Treasury (Greg Hands)]

The question is, I hope, about Air Ambulance Northern Ireland, and I confirm that we are working with the charity and the Northern Ireland Executive on how those funds are delivered. They will go to the air ambulance charity, which I know will be broadly welcomed across all communities in Northern Ireland.

Budget Resolutions and Economic Situation

Lord Elliott of Ballinamallard Excerpts

Wednesday 16th March 2016 Commons Chamber

[Tom Elliott (Fermanagh and South Tyrone) (UUP)]

It is interesting to witness the Budget unfolding in the Chamber today, because, in years past, I have watched the Chancellor deliver his speech from the comfort of my own home, or read about it in the papers the next morning. There is almost a sense of anti-climax this afternoon. I remember huge controversies around the Budget, particularly some years ago when there were huge increases in income tax, but I do not see that so much now, as we seem to have a slightly more settled economy. We have seen much less controversy in the Budget not just for this year, but for the last number of years, and if we look at some of the empty Benches in the Chamber, we can see that perhaps there is something in that. Like all financial statements, there are some good parts and some bad parts, and that has been recognised even on the Opposition Benches.

First, let me highlight some of the significant investments that are going into the English regions. I guess that much of that will not be a huge benefit to Northern Ireland, or indeed to Scotland or Wales. Of course, those regions are getting some of their own financial benefits as well.

One aspect that I have been looking at is the £700 million that has gone into flood defences in England. I just wonder whether there will be Barnett consequentials around that for Northern Ireland, or indeed for Scotland or Wales, as those regions have suffered significantly from flooding as well. In my constituency of Fermanagh and South Tyrone, one person sadly lost their life in the flooding this winter. Many people in my constituency were severely affected by the flooding, and I am sure that it was equally as bad in other areas. I am keen to know whether there will be Barnett consequentials around that £700 million that will come to the Northern Ireland Executive.

[Mr Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP)]

The hon. Gentleman raises a good point. The Barnett consequentials are a consequence of a need in England. If there is a need in Northern Ireland, Wales or Scotland, the Treasury does not react to that need. We have to wait until there is a need somewhere else before we get the money. It is our taxes as well. When we have a need, we should get the money. If there is a need in Northern Ireland, the consequentials should follow to the other nations, but that never happens. It is always about need in England, and the rest will take what comes of that.

[Tom Elliott]

I appreciate the hon. Gentleman’s intervention. Perhaps he is explaining some of the Treasury’s rationale on this. I do not know whether there has been any co-operation on this, but he does seem to be offering some kind of explanation.

The devolution of corporation tax to Northern Ireland has been a live issue for at least eight years, perhaps even longer. I assume that the proposal for a reduction in corporation tax to 17% in the UK, will mean that, with our 12.5% rate in Northern Ireland, we will have a lower overall reduction in our block grant. Some argue that if the UK decides to leave the European Union in the forthcoming referendum there may not be any reduction at all in the Northern Ireland block grant to reflect the fact that our corporation tax is devolved, simply because the Azores ruling does not come into effect. I am interested to hear the debate about that, because it is an issue that we have already raised with the Prime Minister.

One measure that I really welcome for Northern Ireland is the £4 million investment in an air ambulance. I have personally lobbied for that for quite a long time. Northern Ireland is the one region in the United Kingdom that does not have an air ambulance and that support mechanism. I thank the Treasury for that. It will be a great memorial for the family of the late Dr John Hinds who lost his life campaigning for an air ambulance. He was a great motorcycle enthusiast, and his campaign will hopefully now come to fruition. It is also good news for those currently involved in the air ambulance campaign, including my constituent, Mr Rodney Connor, who has been a great campaigner in that respect.

[Pat Glass]

It is really good that there will be an air ambulance supported by Government money in Northern Ireland, but does he not agree that the same should apply to all other regions? In my area, the north-east, the air ambulance service is funded entirely by charity.

[Tom Elliott]

Perhaps we in Northern Ireland have done a better job of lobbying the Government than the north-east has, and it is entirely up to the hon. Lady to take up that challenge. I am proud of what we have done in Northern Ireland and I thank the Government for that.

I also welcome the freeze in fuel duty, which affects Northern Ireland greatly. I know that there has been an argument for some years about the devolution of corporation tax levies in Northern Ireland, but I believe that an equally important duty that we could have devolved to Northern Ireland is that on fuel, for a number of reasons. As we have a land border with another European nation, the Republic of Ireland, a huge amount of fuel is purchased in the Republic and the UK Treasury and Government lose that tax because it is not coming into our economy. The second and more important point is the level of fuel laundering in Northern Ireland in the border regions. The fuel that is laundered is sold at a much cheaper rate, and sometimes even at the same rate, as proper fuel. That is having a huge impact on our vehicles and our economy and also means a huge loss to the Treasury.

I want to see more effort, particularly from HMRC. We received a response to a freedom of information request that showed that in a short period almost 500 fuel filling stations in Northern Ireland were found to be selling illegal fuel. Not one of those filling stations has been named, not one has been charged or convicted of any offence, but if some poor person has bought some of that fuel and is found to be carrying it, they will be fined immediately. There are on-the-spot fines. A huge wrong is being committed and I want the Government to take that up. I have tried earnestly in Northern Ireland to rectify the situation through HMRC, but there appears to be a reluctance to deal with it. Decommissioned laundering stations have been found many times, but they have been operational for many years and it seems that as soon as they are reported, they are decommissioned. HMRC cannot get to the bottom of that. That is one point on which I would appeal and it is why it is important that fuel duty in Northern Ireland has not been increased.

I welcome the opportunity to speak in the debate and genuinely and earnestly thank the Government for their support on the few issues I have described, but I want them to consider the Barnett consequentials to support Northern Ireland and the other regions as they are supporting the English regions.

HMRC Office Closures

Lord Elliott of Ballinamallard Excerpts

Tuesday 24th November 2015 Commons Chamber

[Roger Mullin]

My hon. Friend has just stolen my line. I was about to say, “Try that in Aberdeen.”

[Tom Elliott (Fermanagh and South Tyrone) (UUP)]

I might add, “Try that in Enniskillen.” People would have to go to Belfast, or even perhaps even across the Irish sea to Glasgow.

[Roger Mullin]

I agree with the hon. Gentleman entirely. I know Enniskillen and many other places in Northern Ireland very well. I am sure he would agree that many people, particularly in communities on the fringes near the border, might feel vulnerable and fear having to go to the big city of Belfast to have their needs met. A number of Members from Northern Ireland have pointed out the specialist nature of the needs of people there, because of cross-border issues and the like.

I have happily crossed swords with the hon. Member for Wolverhampton South West (Rob Marris) on a number of occasions. He made one of his typically thoughtful and detailed speeches, and we are grateful for that. He will forgive me if I cannot cover all the points he made, but one thing that struck me about his contribution was his comment that of course there is a need to have new technology and the best new ways of working, but that does not mean we need to deny the right of people to have human contact and get advice and guidance that can be provided only by human beings. We are not luddites opposing the Government—