Birmingham Commonwealth Games Bill [Lords]

Debate between Alison McGovern and Catherine West

Report stage & 3rd reading & 3rd reading: House of Commons & Report stage: House of Commons
Thursday 11th June 2020 Commons Chamber

[Alison McGovern]

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

I am tempted to engage the House in a long discussion about local government finance in relation to new clause 2; however, I will try not to go on and on. The hotel levy proposed in new clause 2 has been previously proposed by Members of the House of Lords—Lord Rooker of Perry Barr and Lord Hunt of Kings Heath—and is supported by not only Birmingham City Council but, to my knowledge, a number of local authorities that have strong experience of hosting large cultural and sporting events.

Without going into too much detail about the terrible impact that austerity policies have had on local government over the past 10 years—I hope that most Members are more than well aware of that—the fact is that we in this country now have a national challenge to figure out how we can properly fund local government. Local authorities are struggling through the coronavirus crisis, having been told by the Government to do whatever it takes to fight the virus, and now the Government are falling short of their commitment to fund local authorities to do whatever it takes. That is the background and the backdrop to the situation in which we find ourselves.

[Catherine West]

Does my hon. Friend agree that, given that coronavirus is currently so job-destroying, the Government should look at this particular measure urgently?

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[Alison McGovern]

On the face of it, the hon. Member makes an argument that is understandable, in that taxes might constrain economic activity. However, many years of having taxes on economic activity show that the thing we use those taxes for can also generate and sustain economic activity. I am arguing that we ought to have a stream of investment to help local authorities sustain themselves and be able to put on events like the Commonwealth games now and in the future. If he thinks that that is not necessary, I would simply invite him to discuss the matter with any leader of a large local authority in the United Kingdom.

[Catherine West]

Does my hon. Friend accept that it might help to burden-share across the region, so that local council tax payers do not have an increase in their council tax bill? If some of the funded visitors were able to pay a small amount extra on their hotel bill, that could spread the burden of this exciting international opportunity, so that not just Birmingham has to pay for this, and it can be spread a little wider.

[Alison McGovern]

My hon. Friend, with her experience, makes a very good argument: it is important that we spread the burden. In any case—

Syria

Debate between Alison McGovern and Catherine West

Monday 16th April 2018 Commons Chamber

[Alison McGovern]

At some point, Syria must be rebuilt, but right now the bombs are falling. We ought not to have an idea that we can somehow put money into Syria and that will make it better, because my argument is actually the opposite: that would make it worse. My hon. Friend is right, however, in the sense that we have to work with Syrians—especially those in this country, and all those who are our constituents—and talk to them about the kind of vision they have for Syria post conflict. I will come on to the precise point he mentioned in a moment.

[Catherine West (Hornsey and Wood Green) (Lab)]

I thank my hon. Friend for her excellent work not just on this, but, like all its members, on the all-party friends of Syria group. Does she agree that, in relation to Russia and finance, the UK could look at taking a similar approach to that of the US towards oligarchs? The rouble actually dropped 30% 10 days ago because of measures that the Trump Government brought in. Does she think that such an approach would be relevant, to apply financial pressure on Russia?

[Alison McGovern]

I do. My hon. Friend pre-empts me, and she is quite right. In my view, the sanctions we have currently levied against Syria and its backers are insufficient. She is no longer in her place, but the Chair of the Treasury Committee, the right hon. Member for Loughborough (Nicky Morgan), spoke very well earlier about the need to look again at this situation and to consider secondary sanctions to reach those who trade with those trading with Syria and its backers. I am pleased that the Treasury Committee is going to investigate this matter in detail.

Fifthly and finally, we have to demonstrate our commitments to the victims of this war. We now have a large number of Syrians—people from Syria who were here before the conflict and those who have come in since—who form part of our UK society. I really think we ought to listen to and work with them and that we should build up another track of peace building. We know that the Geneva talks have stalled and that the Astana process is not going to produce what we would see as an answer, so why do we not learn the lessons of Northern Ireland and recognise that peace needs to involve not just the warring parties but all those with a stake in Syrian society? Why can we not reach out across Syrian civil society and have a British-led effort to consult those impacted by the war and who hold no power but may do so in the future? I really believe that in working with Syrian civil society, most especially women, we would find some of the answers to peace. That will not come immediately or straightaway, but by doing such early work, we could put in train a better Syria for the future.

Finance Bill

Debate between Alison McGovern and Catherine West

Tuesday 21st July 2015 Commons Chamber

[Catherine West]

I thank the hon. Gentleman for his intervention and wish him a happy birthday. I am sure it is wonderful to be 21 again.

I understand that there are many examples of the living wage up in Caledonia, and many London authorities and others are trying their darnedest to introduce the living wage, which is a good and positive step.

Clause 45, on the climate change levy, removes the levy exemption for renewable source electricity generated on or after 1 August 2015. Unhappily, that is an example of the Tories undermining investor confidence in renewable energy. They have already tried to halt the development of the cheapest form of clean energy, by pulling the plug on onshore wind, and that comes hot on the heels of the rather flat green deal. I am not sure whether any Members know about the green deal. It was introduced back in 2010, it was heralded and much money was spent on it. The promotion money probably helped a few public relations companies to keep going, but the number of households that took up the deal was very low.

[Alison McGovern]

My hon. Friend makes an important point. May I remind her of the promise made—it sounds bizarre now, though I remember it being made at the time—to be the greenest Government ever?

[Catherine West]

I thank my hon. Friend for her intervention. Does she also remember the huskies trip? I am not sure whether we will be visiting polar bears any more with the huskies, but I remember around 2009 the promise to which she refers and, for a short while, a real sense that we were generating some momentum and genuinely approaching green issues with energy and commitment.

I wonder whether, as we move towards the Paris summit, we will see any improvement and any genuine debate, because this Budget fails to give any hope on the green agenda. I am pleased that Opposition colleagues have chosen the climate change levy as one of three topics to be debated in Committee in September. That is when we will all have more of a chance to debate this important deal—or lack of—and when we will table amendments.

Some of the statements on taxation are quite welcome, particularly those provisions that assist people on low and medium incomes. However, there are other provisions with which we could do more. In particular, we could consider gaining a little bit more from the financial sector. As we know, there have been some announcements on anti-avoidance measures. Provided that HMRC is resourced adequately to deal with those, we might see some positive developments in that regard.

However, we could be doing much more in relation to private equity and hedge fund managers. We could strengthen some of the proposed measures around the “Mayfair” tax loophole. For example, we could look at how private equity fund managers manage to shrink their tax bills, arranging to pay 28% capital gains tax rather than 45% income tax, which is what we could be getting.

Members will be aware from their advice surgeries that we are still in the tail of the recession. There should not be one rule for certain people in society and another rule for others. That is why we need to consider charging that 45% income tax rate—rather than the 28% capital gains tax—on the portion of income paid out of the profits of the funds that those managers manage, which is called carried interest. Carried interest is their remuneration for managing other people’s money and should therefore really be taxed as income tax. Their ability to pay capital gains tax on what is properly income also allows fund managers to avoid paying any national insurance contributions on a major portion of their income.

The “Mayfair” tax loophole also permits some fund managers to reduce their tax bills even further, sometimes qualifying for additional capital gains reliefs such as entrepreneurs’ relief. I do not hear that being offered to the small cafés or the small businesses on our high street, but the entrepreneurs’ relief for people in the City allows them to pay just 10% tax on up to £10 million of their carried income. That is why I throw back the idea that this is a Budget for working people—perhaps it is a Budget for those who work in the square mile. Some people in the City are still getting a 40% tax cut. They are paying less tax on much of their income than many nurses and teachers. We know what is happening to public sector recruitment: we are losing nurses and teachers every day, because they tend to earn much lower wages than others, and of those wages they are paying a higher proportion in tax than our friends in the City.