Draft Misuse of Drugs Act 1971 (Amendment) Order 2024

Debate between Alison Thewliss and Chris Philp

Wednesday 24th January 2024 General Committees

[Alison Thewliss]

On the point about synthetic opioids, many charities are concerned about the impact that the stymieing of the flow of drugs from Afghanistan may have on the development of synthetic opioids in Europe, because they do not need to be transported; they can be made right here. That is a risk factor should the supply of heroin into the UK be stopped as a result of the action taken in Afghanistan. What assessment has the Minister made of that risk?

[Chris Philp]

We have assessed the risk. We are aware of the new Taliban policy to ban opium production in Afghanistan and the consequent likely reduction in the heroin supply into western Europe and North America. It will take a while to filter through the supply chain—it will not have an immediate effect—but we are aware of the problem. The hon. Lady identifies one of the risks, which is why staying ahead of synthetic opioid importation through surveillance, border control and a zero-tolerance law enforcement approach is particularly important—more so than it would ordinarily be because of the substitution risk that she rightly refers to.

My right hon. Friend the Member for South Holland and The Deepings asked about the ACMD’s remit. The Home Office is able to commission the ACMD to look at various matters. Whenever a matter of concern arises, we commission ACMD to look at it, and monkey dust is an example of that. A number of colleagues, including my hon. Friends the Members for Stoke-on-Trent South (Jack Brereton) and for Newcastle-under-Lyme, raised that issue, and we commissioned the ACMD to take a look at it. We can take action whenever a new harmful illegal substance pops up.

The final question relates to treatment. Although members of the Committee will discern from my comments that I believe in having a strong—indeed, a zero-tolerance—approach to enforcement, treatment is also important. Naloxone should be used as routinely as possible because, as Members know, it combats the effect of opioid overdose. It is successful and effective at doing that, but treatment is also important for getting people off drugs. We have invested £532 million over three years in creating 55,000 extra treatment places, and we are tracking the uptake of those places. I am encouraging the police to refer addicted people into treatment in addition to prosecuting criminals, and I am encouraging the courts to do the same thing. A combination of strong enforcement and referrals to treatment can keep our society free from drugs, and today’s order is an important part, but only a part, of that fight.

Question put and agreed to.

Oral Answers to Questions

Debate between Alison Thewliss and Chris Philp

Monday 18th September 2023 Commons Chamber

[Alison Thewliss (Glasgow Central) (SNP)]

I am glad to hear what the drugs Minister says. The Home Affairs Committee’s report on drugs highlighted good practice in Scotland, in particular with the naloxone roll-out and the medication assisted treatment standards for same-day treatment. Academic evaluation has also found our enhanced drug treatment service, Scotland’s only heroin-assisted treatment service, to have been successfully implemented, in particular with a group with very complex backgrounds. Will the Minister visit Glasgow to hear more about what Scotland is doing to reduce harm and save lives?

[Chris Philp]

As I said to the hon. Lady at the Bar of the House last week, I am due to be in Edinburgh in early December, so I would be delighted to accept her invitation to visit the facility in Glasgow.

National Crime Agency Investigation: Javad Marandi

Debate between Alison Thewliss and Chris Philp

Tuesday 16th May 2023 Commons Chamber

[Alison Thewliss (Glasgow Central) (SNP)]

(Urgent Question): To ask the Secretary of State for the Home Department if she will make a statement on the implications of the National Crime Agency’s investigation into Mr Javad Marandi.

[The Minister for Crime, Policing and Fire (Chris Philp)]

The hon. Lady asks about a law enforcement operation, and she and the House know that the Government do not and cannot comment on investigations being undertaken by law enforcement. This Chamber and this Dispatch Box are not the place, cannot and should not be the place, and never have been the place to comment on live investigations by law enforcement. That remains as much the case today as it has been for the last several decades.

UK electoral law sets out a stringent regime of donation controls to ensure that only those with a legitimate interest can make donations, and that those donations are transparent. Permissible donors include registered electors, UK-registered companies carrying out business in the UK, trade unions and other UK-based entities. I remind the House that this Government have taken significant steps to strengthen the integrity of our elections and to update electoral law to ensure that our democracy remains secure, modern, transparent and fair.

This includes reforms to election finance. The Elections Act 2022 introduced a restriction on foreign third-party campaigning at elections. It is an important and existing principle that only those with a legitimate interest in UK elections can spend money to seek to influence the electorate. The Act, moreover, strengthened transparency in the political finance framework by introducing a new requirement for political parties with assets and liabilities above £500, which of course includes the SNP, to produce an assets and liabilities declaration upon registration. It also introduced a new, lower, registration threshold for third-party campaigners spending more than £10,000 during the regulated period before an election.

The Government are developing a new anti-corruption strategy, which we plan to launch later this year, which seeks to address the impact of corruption on our national security and to strengthen trust in our institutions. The Government are committed to the fight against corruption, and since 2010 the United Kingdom has led international efforts to combat corruption through the delivery of the 2017 to 2022 anti-corruption strategy, on which we will continue to build.

Mr Speaker, I conclude by passing on to you and the House the apologies of the Minister for Security, my right hon. Friend the Member for Tonbridge and Malling (Tom Tugendhat), who would ordinarily have replied to this urgent question. Unfortunately, he is not available at this moment.

[Alison Thewliss]

Thank you for granting this urgent question, Mr Speaker.

The news this morning that Javad Marandi has lost a 19-month legal battle with the BBC to remain anonymous is a victory for transparency and freedom of the press in a battle often weighted in favour of wealthy oligarchs. It also goes to the heart of our democracy. Although it is incumbent on me to state that Mr Marandi denies any wrongdoing, and I note that his lawyers emailed me just five minutes ago, the National Crime Agency has found that companies linked to him are a crucial part of the money laundering network known as the Azerbaijani laundromat. Credit must go to Martin Bentham of the Evening Standard and the BBC’s Steve Swann and Dominic Casciani, to the Organised Crime and Corruption Reporting Project, who back in 2017 exposed the $2.9 billion stolen from the people of Azerbaijan, and to the NCA for its part in this case, naming Mr Marandi as a person of importance.

The UK must not be a home for the world’s dirty money, but it has become so under the Tories. Mr Marandi appears to have used corporate structures—

Public Order Act 2023

Debate between Alison Thewliss and Chris Philp

Tuesday 16th May 2023 Commons Chamber

[Alison Thewliss]

I absolutely agree. That is the dangerous nature of the Act.

Freedom of assembly in the UK now exists on the Government’s terms—when the Conservative party deigns to give that right. That right is now so conditional as to be meaningless. In my life, I have—like many of my colleagues—joined many protests, including the Make Poverty History march through the streets of Edinburgh, and protests and marches against the Iraq war. As a member of Scottish CND, I have protested outside Faslane. For migrant rights, I have protested on Brand Street and Kenmure Street. I protested against Labour’s school and nursery closures some years ago in Glasgow, for self-determination in Kashmir, and in support of Pride.

[The Minister for Crime, Policing and Fire (Chris Philp)]

rose—

[Alison Thewliss]

I would like to know what protests the Minister has joined in his time. That would be very informative for the House.

[Chris Philp]

I often protested against the outrageous actions of the former Labour council in Croydon, which my constituency neighbour, the hon. Member for Croydon Central (Sarah Jones), knows all about. The hon. Member for Glasgow Central (Alison Thewliss) says that the right to protest has been all but extinguished, but the facts manifestly contradict that. During the coronation, which she is no doubt about to refer to, hundreds of people protested peacefully and lawfully. Moreover, on a daily basis—including certainly yesterday, and possibly today—Just Stop Oil protests lawfully in London. So her claim that protest has been all but outlawed is completely untrue.

--- Later in debate ---

[Alison Thewliss]

Perhaps it is now—who knows? My name may be on a file. The police may say, “This person has form for having protested before. She could be a risk; she could present a threat.” I am an SNP Member with the stated aim of wishing to break up the British state; some may consider that a threat. I am wearing a necklace today that says “Not my King”; had I been walking down The Mall at the coronation, perhaps that would have been cause for me to be arrested. Would the Minister consider that to be a threat? I have a belt on this dress; is that considered a locking-on device now? Can I tie myself with a very firm knot to a lamp post—would the Minister consider that a threat under the Act? If he would like to intervene on me now about all of those things I would be very interested to hear whether he would consider me a threat liable to be arrested under the Act.

[Chris Philp]

I am grateful to the hon. Lady for listing all of the items about her person, but if she looks at section 2 of the Act, she will see that subsection (1) requires there to be an intention. In order for her to have committed an offence, there would have to be an intention for her to lock on, and while I am sure she could use her belt in any number of inventive ways, I doubt that there would be an intention to lock on.

In relation to the point about industrial disputes and trade unions made in an intervention by one of the hon. Lady’s colleagues, I remind the House—as I did during the passage of the Act just a few weeks ago—that industrial disputes and trade union actions, strikes and so on are expressly excluded from the provisions of the Act.

[Alison Thewliss]

I am very interested in what the Minister said about intention, because the Republic protesters who found themselves getting arrested had no intention—in fact, they had been negotiating in advance with the police on this issue. It was suggested that the string that they had to tie up their placards with was a locking-on device, despite the organisation having no history of using locking-on devices as part of their protest. If those people, who had no intention and no history of doing such things, ended up getting lifted by the police, I suggest that the Act has no reassurance to offer to anybody in any circumstance where they might be considered a risk.

Coronation: Policing of Protests

Debate between Alison Thewliss and Chris Philp

Tuesday 9th May 2023 Commons Chamber

[Alison Thewliss (Glasgow Central) (SNP)]

The United Nations High Commissioner for Human Rights has said that the Public Order Act is incompatible with the right to freedom of expression, peaceful assembly and association, and it is deeply disappointing to hear both Labour and the Conservatives make it clear that they are wedded to legislation that undermines our rights to protest. Graham Smith, the CEO of Republic, has said:

“These arrests are a direct attack on our democracy and the fundamental rights of every person in the country… The right to protest peacefully in the UK no longer exists. Instead we have a freedom to protest that is contingent on political decisions made by ministers and senior police officers.”

That is entirely unacceptable.

In the statement that he has issued, Sir Mark Rowley said:

“Having now reviewed the evidence and potential lines of enquiry we do not judge that we will be able to prove criminal intent beyond all reasonable doubt.”

So these arrests were not necessary. Sir Mark also said:

“I support the officers’ actions in this unique fast moving operational context.”

That suggests that there is no certainty that if similar circumstances occurred, the same thing would not happen again. Will the Minister tell me what protections people can expect when they, in good faith, engage with authorities before protests to prevent this kind of thing from happening, only to find it happening again, and does it concern him that a journalist was among those arrested?

[Chris Philp]

It is entirely inaccurate to say that the right to protest does not exist. As I pointed out, hundreds and hundreds of people did peacefully and lawfully protest on coronation day. They did so unmolested and unimpeded, which goes to show that the idea that the right to protest does not exist anymore is absolute nonsense. What does not exist is the right to cause disruption to other members of society. That is what our laws seek to prevent.

In relation to the Human Rights Act 1998, and particularly articles 10 and 11 of the European convention on human rights, the Public Order Act 2023 has a section 19(1)(a) statement on the face of it, saying that legal analysis finds the Act is compatible. If the hon. Lady studies articles 10 and 11, particularly the second paragraphs, she will see that qualified rights are able to be balanced against the right of democratically elected legislatures to legislate to prevent criminal activity, including disruption.

Chinese Police Stations in UK

Debate between Alison Thewliss and Chris Philp

Wednesday 19th April 2023 Commons Chamber

[Alison Thewliss (Glasgow Central) (SNP)]

The Scottish National party welcomes the inclusion of a stand-alone China section in the integrated review 2023. I agree with the Minister that we must take this threat seriously, and the Government should be giving as much, if not more, attention to the influence of Chinese state actors as they do to that of Putin’s oligarchs.

This is not the first time that this issue has been raised in this House, so can the Minister provide any update at all on the secret Chinese state police stations? Can he assure us that he is not just waiting for the National Security Bill to go through before taking action? Can he reassure me that he or, perhaps more appropriately, the Security Minister has had communications with counterparts in the Scottish Government and Police Scotland? Given that one of these alleged secret police stations is in my Glasgow Central constituency, may I have an update from Ministers on the situation? The Security Minister has in the past given me a verbal promise of an update, but I have not had one. He is not here today to address that, and I do not want to put the Minister for Crime, Policing and Fire on the spot, but I am very concerned about that.

What reassurance can the Minister provide to Scotland’s Chinese community, some of whom may have good reason to fear Chinese state interference and the secret police, who may be operating here? Can he reassure us that action is forthcoming, because it does not feel as though terribly much has been taken thus far?

[Chris Philp]

First, I will, on the Security Minister’s behalf, recommit him to meeting the hon. Lady, along with the hon. Member for Croydon Central (Sarah Jones). Given that one of these locations is in the constituency of the hon. Member for Glasgow Central (Alison Thewliss), it is important that the Security Minister meets her to discuss it. On his behalf, I make that commitment. I will talk to him later today and reiterate the importance of that meeting taking place, for all the reasons given by the hon. Lady.

I completely agree with the hon. Lady that this kind of activity—intimidation, or potential intimidation, of foreign nationals on our soil, whether by people acting for parts of the Chinese state or, indeed, other states, because we have seen this with other countries as well, with Iran being an obvious example—is completely unacceptable. We have zero tolerance for this kind of activity. It is under active investigation. It is not true to say that no action has been taken. In relation to these particular sites, action is currently being taken, but Members will understand why I cannot go into the details of that work at the moment.

I reassure the House that action can and will be taken under the law as it stands, but the National Security Bill updates and increases the powers available to us. For example, it requires registration and gives us more power to act against people who are acting on behalf of foreign states. I encourage all Members, including those in the other place, to support that Bill so that we can get it through Parliament and on to the statute book as fast as possible, because those extra powers will help us in this area.

English Football League Governance: Derby County FC

Debate between Alison Thewliss and Chris Philp

Tuesday 18th January 2022 Commons Chamber

[Chris Philp]

The hon. Member makes a very powerful and eloquent point. As I said in response to the points made by the right hon. Member for Derby South (Margaret Beckett), I am sure the EFL is listening to our proceedings and I am certain it will act accordingly.

[Alison Thewliss (Glasgow Central) (SNP)]

Although it is true that I am a proud Motherwell fan, my in-laws, Ron and Alison Wright, constituents of the hon. Member for Mid Derbyshire (Mrs Latham), are proud Derby County fans. They are very proud of their club’s history and place in the town. As Derby County try to play out of their 21-point penalty, does the Minister agree there is a bit of a catch-22 situation for a team to try to play for its survival while it cannot keep players in the face of such financial and legal uncertainty?

[Chris Philp]

The hon. Lady is right. It is a difficult situation to suffer a 21-point penalty. Back in 2010, my team, Crystal Palace, had a 10-point penalty and avoided relegation on the final day of the season. I hope—demand, really—that Derby County continue and survive. I hope they continue fighting on. I know they will show the spirit required to get every single point they can as they fight not for survival as a club, but for survival in the Championship. I wish them every bit of good luck in doing that.

Oral Answers to Questions

Debate between Alison Thewliss and Chris Philp

Tuesday 3rd November 2020 Commons Chamber

[Chris Philp]

My hon. Friend is quite right. We are losing something like 1,000 magistrates a year as they turn 70, often very experienced magistrates who still have a great deal to offer the justice system. The consultation had two options: raising the age to 72 or to 75. I strongly commend my hon. Friend for his patience, persistence and perseverance in trying to get his private Member’s Bill through, often in the face of somewhat unfortunate headwinds, on private Members’ Bill Fridays. This is an urgent issue. As soon as we have formulated a response to the consultation, we will certainly be looking to legislate via whatever vehicle is available as quickly as we possibly can.

[Alison Thewliss (Glasgow Central) (SNP)]

What discussions he has had with Cabinet colleagues on upholding the rule of law.

Covid-19: Support and Accommodation for Asylum Seekers

Debate between Alison Thewliss and Chris Philp

Monday 29th June 2020 Commons Chamber

[Alison Thewliss (Glasgow Central) (SNP)]

(Urgent Question): To ask the Home Secretary if she will make a statement on support and accommodation for asylum seekers during the covid-19 pandemic.

Thank you, Mr Speaker, for those kind words; they will mean an awful lot to my constituents.

[The Parliamentary Under-Secretary of State for the Home Department (Chris Philp)]

My thoughts and those of the Home Secretary and, I am sure, the entire House are with the victims of the appalling knife attack that happened in Glasgow on Friday afternoon. I would like to pay tribute to the brave first responders who, as always, ran towards danger to protect the public. They include Police Scotland hero David Whyte, who was very sadly seriously wounded. The suspect has been named as Badreddin Abadlla Adam, a 28-year-old asylum seeker originally from Sudan. The House will appreciate that I am able to provide only limited information on this case while the investigation is under way, but I can talk about the United Kingdom’s proud history of supporting asylum seekers.

Last year, the United Kingdom made 20,000 grants of protection or asylum, one of the highest numbers of any country in Europe. We welcomed more than 3,000 unaccompanied asylum-seeking children, the highest number of any country in Europe. Indeed, it made up 20% of Europe’s UASC intake.

The UK has a statutory obligation to provide destitute asylum seekers with support while their case is being considered. While asylum cases are being considered, asylum seekers who would otherwise be destitute are provided with free accommodation. The utilities are paid for, council tax is paid for and free healthcare on the NHS is available. Free education is available for those with children, and there is a cash allowance to cover other essential living needs, which recently increased by 5%, considerably more than inflation. The package needs to be viewed as a whole.

During the coronavirus pandemic, we have stepped up the help available to go beyond the statutory requirements that I have just laid out. We have paused the usual practice of asking people to move on from supported accommodation when their asylum claim is decided either positively or negatively, so that they can remain in supported asylum accommodation. As a consequence of that decision, which was implemented on 27 March, around 4,000 more people are in supported accommodation than was the case at the end of March, because people are still coming into the system, but nobody is moving on. We have therefore been frantically procuring additional accommodation around the country to meet that additional need. The circumstances in Glasgow are slightly different, but I suspect we will come on to the specifics of Glasgow, so I will answer those questions in due course. That is the principal measure we have taken to ensure that people seeking asylum have been looked after and protected during the coronavirus epidemic.

Where we have procured additional hotels, we provide full-board accommodation, including laundry services, personal hygiene products and feminine hygiene products. Wrap-around services are also provided, including welfare support, healthcare and access to mental health services. Asylum seekers also have 24-hour-a-day access to assistance via Migrant Help through a freephone number.

We are working at pace to increase the available accommodation so that we can move asylum seekers from hotels into more permanent accommodation as quickly as possible, which I think we would all agree is more suitable. Efforts are currently under way to do exactly that. Over time and in due course, we will be returning to a business-as-usual approach in a phased, proportionate and careful way.

We are committed to ensuring that vulnerable asylum seekers are provided with all the support they require. As our nation has been battling coronavirus, we have continued and will continue to look after asylum seekers. We will continue to drive forward the reforms required to support those asylum seekers who are in genuine need. I commend this statement to the House.

[Alison Thewliss]

There have been two deaths in hotel accommodation in Glasgow Central since the start of lockdown: Adnan Elbi in McLays Guest House at the start of May, and Badreddin Abadlla Adam, who was shot dead on Friday after carrying out a shocking knife attack, which left three asylum seekers, two Park Inn hotel staff and Police Constable David Whyte in hospital. My thoughts are with them and their loved ones, and my thanks go to the emergency services who so bravely and swiftly dealt with a terrifying situation.

The Minister came to the House less than two weeks ago to hear the concerns raised by my hon. Friend the Member for Glasgow South West (Chris Stephens). Our concerns persist. At the start of lockdown, the Home Office contractor Mears moved 321 people from initial accommodation in serviced flats across Glasgow into city centre hotels. It did not consult, as it is obliged to do, with Glasgow City Council or anyone else. Contrary to the oral and written evidence to the Home Affairs Committee by Mears boss John Taylor, those people included pregnant women, trafficked women, torture victims, family groups and vulnerable people, young people included, two of whom ended up in hospital on Friday. They were given little notice: according to the Scottish Refugee Council, one family with food on the hob and clothes in the washing machine were given half an hour to gather their belongings.

One of my constituents was a friend of Adnan, who died in McLay’s Guest House. He has faced extreme trauma because of that and has asked to be moved, but is still in that guest house two months later.

I have some questions for the Minister. First, which Whitehall source led the BBC to report that three people had been found dead, which was not true and caused a great deal of distress in my constituency? Mears has misled Committee members—elected Members—and has now admitted that no vulnerability assessments were carried out. When did the Minister find out that Mears had lied to everybody about this, and will he suspend its contract? Will he immediately reinstate the meagre £5.37 a day to allow asylum seekers a small but important degree of dignity? Will he halt any evictions while this outbreak is going on? Will he work with Glasgow City Council, organisations in Glasgow, the Scottish Government and asylum seekers themselves to return them to appropriate accommodation as soon as possible? Will he authorise an independent inquiry into asylum accommodation, which is very urgently needed? Lastly, will he take responsibility and apologise for a saga that has heaped trauma on to already vulnerable people in Glasgow and across the UK?

[Chris Philp]

I thank the hon. Lady for those questions. She started by asking about the move of 321 people in Glasgow from serviced apartments into hotel accommodation, which occurred around the end of March. That was a separate process from the one I described earlier, involving the extra 4,000 places. The contractor, Mears, moved those 321 people from the serviced apartments into hotels because it was judged that, as the coronavirus epidemic took hold, the serviced apartments were not appropriate and not safe. It was done for safety reasons, and that has been entirely borne out by the subsequent statistics. Glasgow accommodates slightly over 5,000 asylum seekers, as the hon. Lady will know—many of them are in her constituency—and during the coronavirus epidemic over the last three months or so, of those over 5,000 service users, only two have tested positive for coronavirus, and both, I am pleased to say, have fully recovered. Among those people accommodated in hotels there has not been a single confirmed case of coronavirus. So the steps being taken to safeguard the public, and to safeguard the asylum seekers in particular, have been successful.

The hon. Lady asked about the plans for the future, and I can confirm that it is our plan to move people out of those hotels into more regular mainstream accommodation as quickly as possible. That was always the intention; it was only ever a temporary measure, and that applies to hotel accommodation, of course, in the rest of the United Kingdom as well as in Scotland. But I would say that these hotels are of good quality. The one involved on Friday was a three-star Radisson hotel; it was a good hotel with substantial facilities, including en suite showers for every single room.

The hon. Lady asked about evictions and whether people are being asked to move on, as would ordinarily be the case. That is currently not happening, as she knows, following the announcement on 27 March, but in due course, as life returns a little bit more to normal and now that the ban on moving home has ended, we will be returning to normal over time, but it will be done in a very careful and phased way. Nothing will be done in a rush, and I would point out that those who have successful asylum grants will actually be better off with universal credit when they move on, so it is in their interests as well.

There are a number of questions that the hon. Lady and her colleagues from Glasgow asked me in a letter dated a week ago today, 22 June. I do now have detailed answers to all those questions. I will be sending them in writing, to the hon. Member for Glasgow South West (Chris Stephens) in the first instance, in the next 24 to 48 hours, and then meeting with all Glasgow MPs who wish to meet her to go through those in detail either later this week or at the latest early next week.

Finance (No. 3) Bill

Debate between Alison Thewliss and Chris Philp

Committee: 2nd sitting: House of Commons
Tuesday 20th November 2018 Commons Chamber

[Alison Thewliss]

The problem is that it is not being comprehensively enforced. About £2 billion is due in fines from SLPs. If the Government are not going to collect £2 billion, why on earth are they putting forward austerity cuts? They could have that money easily.

[Chris Philp]

It will not have escaped the hon. Lady’s notice that by the fifth year of the five-year period there is a fiscal loosening of £30 billion—that is hardly austerity—and that the NHS will receive a huge amount of extra money, including the NHS in Scotland via Barnett consequentials. I think that we can say very clearly that this was not an austerity Budget. I agree, however, with her more serious point. As my hon. Friend the Member for Ochil and South Perthshire said, where a law is passed, it should be properly enforced, and if there is more scope to enforce this law, it should certainly be done.

A further legislative measure was announced over the summer in relation to transparency. By 2021, we will start recording the ultimate beneficial ownership of property owned by companies, which is an important measure, because some properties, particularly very expensive, high-end properties, are often owned in offshore companies, but there is currently no transparency in respect of who owns those companies. As of 2021, we will know who the ultimate beneficial owners are, and that will also create an interesting taxation opportunity that I strongly commend to the Financial Secretary.

At the moment, when an ordinary property is bought or sold by an individual, it triggers residential stamp duty, but when a transaction takes place whereby the company owning the property is sold, no residential stamp duty is paid, because, as far as the Land Registry is concerned, no change of ownership has taken place. At the moment, we have no visibility over any change of ultimate beneficial ownership, because it is not registered, but from 2021 we will, because that change will have to be registered. I suggest, for a future Budget, that a change of ultimate beneficial ownership should trigger a stamp duty charge as though for a direct change of ownership, as would happen if any of us bought a property. That would yield significant extra residential stamp duty.

I will give an example. I am aware of a transaction in Belgravia, not far from here, that took place two or three years ago. It was a collection of luxury houses developed by an offshore company—based in the Cayman Islands or British Virgin Islands—and sold to a Chinese gentleman for £110 million, but he did not buy the property and therefore no stamp duty was payable. He bought the offshore company and no stamp duty was paid. Had that change of ultimate beneficial ownership been registered and had stamp duty been payable, a stamp duty charge of about £16 million would have been crystalised for the Exchequer’s benefit.

I suggest we collect that sort of money in the future. Of course, that property is liable for annual taxation on envelope dwellings, because it is held in a company, but that only levies at a rate of £226,000 a year, so the payback period is 73 years, and most of these properties are traded more frequently than that. I challenged the hon. Member for Oxford East earlier to come up with some ideas for raising revenue and combating non-compliance. There is my idea. I hope that a future Budget adopts it and takes it forward.

I will conclude—I know the shadow Chancellor wants to hear more, but I have to disappoint him—by briefly addressing Government clauses 15 and 16 on intellectual property charges and charges in relation to fragmented profits. This is an extremely important area, because a number of large corporates are using intellectual property charges to spirit away profits attributable to UK operating activities.

Most notoriously, Starbucks used this about five or six years ago. It managed to extract almost all its UK profits by levying an intellectual property charge in relation to its beans. It said the beans were special beans and had a very high charge on them, and it managed to register pretty much zero UK profit. That is precisely the kind of intellectual property charge that these measures are designed to combat. An arm’s-length, third-party intellectual property charge cannot possibly result in zero profit for the company paying that charge, and it is right that the Government are taking further action.

Multinationals take their profits out of the UK and into, typically, the Luxembourg, Swiss or Caribbean jurisdictions, and intellectual property charges are more often than not the means by which they do so. I strongly commend clauses 15 and 16 for taking direct action to prevent avoidance measures that have undoubtedly cost the Exchequer. I think that I have spoken long enough about these clauses, which I shall be extremely happy to support if there are Divisions in 10 minutes’ time.

[Paul Masterton]

It is a pleasure to follow my hon. Friend the Member for Croydon South (Chris Philp), although, as ever, the problem with following him is that he has done such a thorough and detailed job of going through the minutiae of pretty much every single piece of the Bill that there is not a huge amount left for me to say. However, I will do my best and raise a few points that I know are particularly important to people and businesses—particularly small businesses—in East Renfrewshire.

One reason why these measures are so important comes back to the perception of fairness. Action to deal with tax avoidance and evasion is important because people often perceive that they are playing by the rules and doing everything right, while other guys—often the big guys with lots of money, who can afford to pay the “big four” huge sums—are able to find clever ways of reducing their tax liability.

There have been many examples of companies diverting profits, in a way that is not fair and is not right, to other jurisdictions with much lower tax levels to save themselves money. They are taking money that was produced when taxpayers in this country went into their shops and bought their goods, supporting them and their products, but that money is not being kept in our economy or reinvested in our economy. It is being shunted offshore to other jurisdictions, where it is swept up and often manoeuvred around other areas, particularly when a global business is moving it around to prop up less competitive and less successful parts of that business offshore.

Since 2010, an extra £180 billion or so has been brought in as a result of some of the measures that we have introduced. That is a huge amount, which is being reinvested in the country in which it was produced. It means more money for our schools, hospitals and small businesses—the sort of money that can give people a bit of a break.

I want to touch briefly on the new clause tabled by the hon. Member for Glasgow Central (Alison Thewliss). She talks frequently, and with a great deal of knowledge, about Scottish limited partnerships—rightly, I think, because they are being increasingly scrutinised and are coming under the spotlight. They have been around for a long time, and previously no one paid much attention to them—no one really understood what they were being used for. They fall within a slightly odd grey area in terms of the Companies Act 2006. In my former job as a pensions lawyer, they were used as a vehicle to allow companies to put an extra step between them and an investment. They helped companies to reduce their tax in relation to employer contributions that they had made through the sweeping round of funds.

That was a legitimate funding mechanism, but there is no doubt that because of where Scottish limited partnerships sit in relation to the wider tax system, they are being used pretty unscrupulously. A lot more stuff has been coming out about them, and I think that the hon. Lady is right to go on probing and testing to establish whether their proper use is being properly enforced and checked.

Budget Resolutions and Economic Situation

Debate between Alison Thewliss and Chris Philp

Wednesday 8th July 2015 Commons Chamber

[Chris Philp]

I thank the hon. Gentleman for raising that point. I am afraid I disagree with his concerns and I will address these matters in more detail shortly.

I was endorsing the Chancellor’s plan to continue deficit reduction and to eliminate the deficit by the end of this Parliament. If this country is to have a stable economic future, and if we are to be in a position where we can weather anything the future throws at us—there may well be further economic turbulence from overseas in the years ahead—it is essential that we have a balanced budget, and the Chancellor is right to aim to achieve that.

I note, however, that the Red Book tables C.3 and C.5 forecast significant increases in tax revenue over the next five years, which are essential if we are going to balance the books. Revenue over the next five years is forecast to increase by £168 billion, an increase of 26% from today. At the same time, expenditure is going to increase by £69 billion, an increase of 9% from today. If for any reason that 26% increase in revenue does not materialise, the Government will have to look again at their expenditure plans. I am sure Members will watch very carefully to make sure that those revenue assumptions do indeed come to pass over the coming five years.

I commend the Chancellor for his work on fairness over the past five years and in this Budget. He has taken action to make sure that the wealthiest in our society pay their fair share and the poorest are given the most help. The top 1% of earners pay as much into the system as the 9 million poorest people in our society. If any Member suggests that the richest are getting an easy ride, they are quite wrong; the richest are indeed paying their fair share. Measures were announced today to clamp down on corporate tax avoidance, which have been welcomed from all parts of this House, and to limit the scope of people using non-dom status to avoid paying their fair share of taxes. I am sure Members on both sides of the House will be quick to welcome that, too.

There has also been a continuation of measures designed to help the poorest in our society, such as further increases in tax allowances, which disproportionately benefit the poorest; and one of the heaviest taxes of all, the tax on fuel, which bears down proportionately most heavily on small businesses and people on low incomes, has once again been frozen. Had that freeze not started some years ago and been continued, each time we filled up our car the petrol tax would be about £10 to £11 higher. We should thank the Chancellor for alleviating that heavy burden that falls on the shoulders of those who can least afford it. This is therefore a Budget that has fairness at its heart, with the richest paying their fair share while those on lower incomes are protected, which is right.

I shall now turn to the issue raised in the last intervention: the reform of benefits, and in particular the reductions in tax credits. We had an Opposition day debate yesterday on tax credits, when many Conservative Members pointed out how staggeringly expensive tax credits are, at a cost of £30 billion a year, and how they often serve to— [Interruption.] Sorry, my voice is going a bit; I was cheering so loudly earlier that it is not as clear as normal—I hope the Chief Secretary’s Parliamentary Private Secretary takes note of that.

Tax credits reduce incentives to work, so it was right that the Chancellor today moved to reduce the cost of tax credits to the Exchequer, but it was equally important that that reduction was accompanied by such a significant increase in the minimum wage, introducing the new concept of a living wage—it will rise to £7.20 an hour next April and will continue up to £9 an hour by 2020.

[Alison Thewliss]

I shall help the hon. Gentleman out a little. Does he accept that the cuts to tax credits are going to have a disproportionate effect on women? The Fawcett Society says that the freeze in working-age benefits will disproportionately affect women, with one fifth of women’s incomes coming in benefits compared with one tenth of men’s.

[Chris Philp]

The benefits of people who are not working are unaffected, and people who are working will have the opportunity, via higher wages, to more than recoup the effects of the tax credit move that the hon. Lady just described. I strongly welcome the fact that the increase in the minimum wage will more than offset the effect of the tax credit reductions.