Abena Oppong-Asare
Main Page: Abena Oppong-Asare (Labour - Erith and Thamesmead)Department Debates - View all Abena Oppong-Asare's debates with the HM Treasury
(3 years, 2 months ago)
Commons ChamberIt is a pleasure to respond to this debate on behalf of the official Opposition. As my hon. Friend the Member for Ealing North (James Murray) said earlier, we will not be opposing this Bill today. We support the intention behind it and many measures within it.
I thank all hon. Members from across the House for their contributions to the debate. My right hon. Friend the Member for Hayes and Harlington (John McDonnell) spoke about his concerns about how freeports will operate, which were shared by the hon. Members for Gordon (Richard Thomson) and for Richmond Park (Sarah Olney).
I will now make a few brief points about the different elements of the Bill and echo the questions asked by my hon. Friend the Member for Ealing North in the hope that we can get some clear answers from the Minister. On freeports, which we debated at length over the course of the passage of the Finance Act 2021, we have consistently said that we support and protect British businesses and want every region in the nation of the UK to thrive. We have asked important questions about exactly how freeports will operate. On my hon. Friend’s specific questions about the national insurance relief being introduced for freeports, we need clarity on why the relief is conditional on employment beginning after April 2022 given that freeports are expected to begin operating in 2021, and why the level of the relief is set at £25,000, which is below both median pay in the freeport areas and the rate for those employing under-21s and apprentices.
My hon. Friend asked the Minister for some transparency about the Government’s approach to the global minimum corporation tax rate. Specifically, why did the Chancellor support the weakening of the proposals and the reduction from the 21% rate to the 15% rate? The Government must be ambitious and argue for a higher rate in order to level the playing field for British businesses and build a strong economic recovery.
I turn now to the measures related to veterans. I pay tribute to all those who have served in our armed forces and all those who currently do so. They make great sacrifices on behalf of this country and they deserve nothing but the best from this Government. Clearly, an important part of this is supporting veterans as they transition into civilian employment. We therefore welcome the new relief on employers’ national insurance contributions for veterans. I hope the Minister can answer my hon. Friend’s specific points about the length of the relief and why it is shorter than the freeport relief, and on what the upper secondary threshold for the veterans’ relief will be.
The second part of the Bill exempts self-isolation payments for national insurance contributions for the self-employed. Again, we welcome this measure. We have consistently called for the Government to do more to ensure that people do not have to choose between self-isolating and paying the bills. Recent figures show that still only about half the people who should be self-isolating are doing so. Clearly, this will not be about the financial element alone, but there is clear evidence that the system is not working as it should. First, only about one in eight of the workforce are eligible for the £500 payment. Of those who apply, only 30% succeed, and of those who apply for the discretionary scheme, only about 20% succeed. We urgently need some action from the Government to improve this. Although we welcome the small step in the Bill to reduce the administrative burden associated with self-isolation payments, will the Minister set out what more the Government intend to do to support people to self-isolate in the coming months?
We welcome the anti-tax avoidance measure in clause 11. My hon. Friend asked what action the Government will take to clamp down on the most active promoters of tax avoidance schemes, and I hope the Minister will address this.
We will not oppose the Bill today. We support the measures to boost jobs across the country, to help veterans to find employment, to ensure that people can self-isolate, and to tackle tax avoidance. We will of course use further stages of the Bill to seek to improve it. I hope the Minister can respond to the specific questions that I and other hon. Members have asked.