Finance (No. 2) Bill

Debate between Alistair Carmichael and Victoria Atkins

2nd reading
Wednesday 29th March 2023 Commons Chamber

[The Financial Secretary to the Treasury (Victoria Atkins)]

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

Before I start the debate, Mr Deputy Speaker, I should declare, to avoid any potential conflict or perception of conflict, that due to a family member’s financial interests, I have recused myself from making ministerial decisions on issues relating to the soft drinks industry levy, which will be dealt with more than amply by my hon. Friend the Exchequer Secretary.

I start the debate by paying tribute to Betty Boothroyd, a groundbreaking Speaker of this House who commanded the Chamber with wit, good humour and gravitas for eight years. She developed a number of subtle and perhaps not so subtle tactics to control a rowdy House, including, I understand, yawning to hint that a speech had outrun the patience of the House. I will try, Mr Deputy Speaker, not to cause you to yawn.

Since the last Finance Bill in the autumn, 10-year gilt rates have fallen, debt servicing costs are down, mortgage rates are lower and inflation has peaked. The Office for Budget Responsibility now forecasts that we will meet the Prime Minister’s priorities to halve inflation, reduce debt and get the economy growing. We are on the right track.

At the Budget, my right hon. Friend the Chancellor delivered the next part of our plan: a Budget for growth. He was clear that this Government’s focus is not just on encouraging growth as we emerge out of the downturn, but on building long-term, fiscally sustainable and healthy growth with businesses and, importantly, communities.

The Finance (No. 2) Bill delivers on those commitments. It takes forward measures to support enterprise and grow the economy by encouraging business investment and helping to increase the number of people in work. It legislates for announcements made at previous fiscal events, which take advantage of our opportunities outside the EU and reinforce our commitment to financial stability and sound money. It implements the tax measures needed to continue improving and simplifying our tax system, to ensure that it is fit for purpose.

[Mr Alistair Carmichael (Orkney and Shetland) (LD)]

On fiscal events, the Minister will be aware that there was dismay in the Scotch whisky industry at the decision not to reverse the double-digit duty hike previously announced, while introducing a freeze on duty for what the Chancellor called “warm ale”. How is that consistent with the Government’s previously stated policy of reforming spirit duty to support the Scotch whisky industry?

[Victoria Atkins]

I am grateful to the right hon. Gentleman for raising that issue. I understand his concerns, and I will go into a little more detail later about the reasoning behind the restructuring of alcohol levies. In the last 10 fiscal events before this one, the whisky industry benefited from either freezes or cuts in duties. The Bill will bring into place the new framework announced some time ago, including the health aspect of being able to differentiate the strength of alcohol used in products—something that I suspect the right hon. Gentleman will want to engage with in his speech.

Let me turn to the substance of the Bill, starting with the measures to support enterprise and economic growth. Those of us on the Government Benches know that a strong private sector will grow the economy, spread wealth and prosperity across the country, help to invest in public services and support the most vulnerable in society. We recognise that central to these ambitions is private sector investment, so we are lowering business taxes to incentivise investment and tackle the productivity gap. My right hon. Friend the Prime Minister put that at the heart of his economic strategy as Chancellor, when he introduced the super deduction for corporation tax.

The next step in encouraging business investment is the full expensing policy announced in the spring Budget. The Bill introduces full expensing for the next three years. That means that for every single pound that a company invests in qualifying plant or machinery, its taxes are cut by up to 25p. That will put more than £27 billion back into the economy over the next three years. It is a corporation tax cut worth £9 billion, which the OBR has said will increase investment by 3% for every year that it is in place. It will also make us the only major European country with full expensing, and will give us the joint most generous capital allowance regime of any advanced economy, making the UK capital allowances regime the most competitive in the OECD on a net present value basis, and securing the UK’s position as a global leader.

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[Victoria Atkins]

I am extremely grateful to the right hon. Gentleman for his question, which I interpret to be about energy-saving materials. I ask him to watch this space. I know how keen he and his colleagues in Northern Ireland are to ensure that we are able to bring forward those measures. I was hoping he would ask me a question that would give me the opportunity to flag my love for Bushmills whiskey—in a healthy way—but sadly I have been denied that.

[Mr Carmichael]

On that point, will the Minister give way?

[Victoria Atkins]

Crikey—if the right hon. Gentleman asks me to list my favourite Scotch whisky, we could be here some time.

[Mr Carmichael]

I am well up for that challenge. We know that the Secretary of State for Scotland argued against the increase in duty. One wonders what it was that the Minister found so unattractive in that argument; perhaps we will now get some of the answer. I do not know whether the Minister regards it as a detail, but when will we see spirit duty reform? Can she give us a date?

[Victoria Atkins]

As the right hon. Gentleman knows, I am bound by collective responsibility, so I can neither confirm nor deny what the Secretary of State for Scotland may or may not have said. I do not know, but I certainly intend to continue to support the Scotch whisky industry. [Interruption.] My hon. Friend the Exchequer Secretary to the Treasury reminds me that the changes will be coming in in August. We want to work constructively with industry on this.

Another opportunity is in delivering a better connected country. As announced in the autumn Budget 2021, the Bill delivers a package of air passenger duty reforms that will bolster air connectivity across the UK through a 50% cut in domestic air passenger duty. Set at £6.50, the new domestic band will benefit more than 10 million passengers from April. The reforms will also align with UK environmental objectives by adding a new ultra-long-haul band, ensuring that those who fly furthest and have the greatest impact on emissions incur the greatest duty.

The Bill will also take forward measures to support sustainable public finances, helping to provide the stability and confidence that underpin the economy and supporting businesses and households across the country. Despite energy prices having come down since they reached historic heights after the invasion of Ukraine, we know that many families and businesses still feel the strain. The only sustainable solution to the link between the cost of gas and the price paid by customers for all electricity is to reform the energy market and reduce the reliance on gas generation, so as we announced at the autumn statement, the Government are now legislating for a tax on the extraordinary returns of electricity generators resulting from the spike in gas prices driven by Russia’s illegal war in Ukraine. It is forecast to raise approximately £14 billion over the next five years, to help to fund public services and interventions to support households and businesses with increased energy bills.

To further ensure that businesses pay their fair share of tax, the Government will also legislate to protect the UK tax base against aggressive tax planning by large multinational businesses, and to reinforce the competitiveness of the UK; I know that this is a matter of interest to several right hon. and hon. Friends. The Bill will implement OECD pillar two in the UK, which builds on the historic agreement of over 135 countries to a two-pillar solution to the tax challenges of a globalised and digital economy. The global minimum tax—pillar two, as it is called by those who speak accountancy language—will ensure that multinational enterprises pay a minimum 15% rate of tax in each jurisdiction in which they operate, meaning that those companies operating in the UK contribute their fair share to sustainable public finances.

Prisons Strategy

Debate between Alistair Carmichael and Victoria Atkins

Tuesday 7th December 2021 Commons Chamber

[Victoria Atkins]

I thank my hon. Friend, and I also thank her constituents who do so much to keep our communities safe. On the planning application, I regret that I cannot announce our views at the Dispatch Box; we must leave that to the council. I know that she has been lobbying hard to ensure that the plans meet the needs and concerns of her constituents.

[Mr Alistair Carmichael (Orkney and Shetland) (LD)]

There is a lot in this statement that is to be welcomed, but the challenge that faces the Minister is that we can undermine it all by continuing to allow overcrowding in our prisons. Some of the prison estate is more than 60% overcrowded. With the prison population forecast to rise by 20,000 in the next four years, why are we not linking this to sentencing policy? The bottom line is that we still send too many people to prison.

[Victoria Atkins]

Fundamentally, the judiciary and magistrates should be trusted in their sentencing decisions. We need to provide alternatives for people who should rightly be sentenced to alternatives, but that must be a matter for the judiciary. On the question of prison places, this is precisely why we are investing nearly £4 billion in new prisons as well as having a vast programme of work to reshape existing accommodation and put in temporary accommodation so that prisoners are treated safely and decently inside.

Afghan Citizens Resettlement Scheme

Debate between Alistair Carmichael and Victoria Atkins

Monday 25th October 2021 Commons Chamber

[Victoria Atkins]

Very much so. In relation to those who are outside Afghanistan, the Ministry of Defence and others are working very hard with international partners to secure safe routes where it is possible to do so.

[Mr Alistair Carmichael (Orkney and Shetland) (LD)]

I ask again the question posed by the hon. Member for Brighton, Pavilion (Caroline Lucas): how many of the 5,000 places currently allocated have already been filled, and how many of those people are already in the United Kingdom?

[Victoria Atkins]

Because the scheme has not been launched yet, as we are still developing it, I do not have a precise figure for the right hon. Gentleman. However, I ask him not to take from that that the figure has been met or otherwise. At the moment, I am not able to help the House with that number; when I can do, I will.

Oral Answers to Questions

Debate between Alistair Carmichael and Victoria Atkins

Monday 25th February 2019 Commons Chamber

[Victoria Atkins]

I am extremely grateful to the hon. Lady. I feel as though I am in the middle of a Welsh appreciation society. I am afraid I do not agree with her analysis that the Bill is narrow in its breadth. The legislation and the raft of non-legislative measures are very broad. We have always been clear that this is not just about changing the law; it is also about changing society’s attitude to and understanding of domestic abuse. She will know that we have quite deliberately published it as a draft Bill because we want it to be open to scrutiny by both Houses, and we very much look forward to the Joint Committee looking at it and coming forward with recommendations.

[Mr Alistair Carmichael (Orkney and Shetland) (LD)]

15. What steps the Government are taking to ensure that the fishing industry can employ crew members from outside the EEA.

Civil Partnerships, Marriages and Deaths (Registration Etc.) Bill (First sitting)

Debate between Alistair Carmichael and Victoria Atkins

Committee Debate: House of Commons
Wednesday 18th July 2018 Public Bill Committees

[Victoria Atkins]

I thank the hon. Members for Harrow West and for Hammersmith for their comments. The hon. Member for Harrow West knows the political situation in Northern Ireland. In fairness, the issues have been devolved to the Northern Ireland Assembly—and to the Scottish Parliament. There are no members of the Scottish National party here, but there is a Scottish Member present, and I am not sure how the Scottish Parliament, the matter having been devolved to it, would take a report from the Secretary of State telling it what to do. Given that it has already held a consultation—perhaps I am speculating here—it might have matters in hand anyway.

[Mr Carmichael]

I served on the Standing Committee on the Civil Partnership Bill in 2004. It was dealt with here with a legislative consent motion from the Scottish Parliament. The feeling at the time was that that was an easier way of doing it—another pragmatic step along this long road. I am reliably informed that there are fairly good telephone services between London and Edinburgh. It would not be that difficult to work out the Scottish Government’s intentions.

[Victoria Atkins]

Given that this is a private Member’s Bill, I am afraid that we feel constrained to observe the political fact—as well as the political courtesy—that the matters are devolved. I understand the motivations of those who want change across the whole UK, but I regret that on this we must observe the fact that the matter is devolved. Not only must we underline our view that the Bill is not the right place in which to grapple with the political situation in Northern Ireland; we must allow it to resolve what are devolved matters.

The hon. Member for Hammersmith made a powerful speech on behalf of his constituents on Second Reading. I understand his wish for a timetable. At the moment, we have the timetable set out by the private Member’s Bill. The work is ongoing. Those who assist me and the officials have a great understanding of the urgency of the situation. We want to get to a position where we have the evidence and we have ensured that we have lined up all the other matters connected to an act of civil partnership and the issues that flow from that for other Departments. The Secretary of State is always in listening mode, as am I. I am grateful to the hon. Member for Hammersmith.

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[Victoria Atkins]

I regret to disappoint my hon. Friend, but I am but a small cog in the Government machinery. Although, as my hon. Friend knows, the Secretary of State is very much seized of the matter and concerned by it, I would not want to take the risk, respecting this Committee and colleagues from all parts of the House as I do, of speculating at this stage.

[Mr Carmichael]

I very much endorse the views of the hon. Member for East Worthing and Shoreham. Given the terms of the Supreme Court judgment, I encourage the Minister to represent to those whose agreement she will need within Government that at the very least we should be entitled to some sort of timetable, so that we know the Government’s intentions in bringing UK law back into compliance with the European Court of Human Rights.

[Victoria Atkins]

Very much so, and these discussions will assist others who are perhaps not intimately involved in these matters in understanding the concern that Members from all parts of the House have on the urgency of the situation.

I regret that I have to resist strongly the amendments put forward in the name of the hon. Member for St Helens North, which were spoken to with great eloquence by the hon. Member for Harrow West. The Government support new clause 1, as proposed by my hon. Friend the Member for East Worthing and Shoreham.

G4S: Immigration Removal Centres

Debate between Alistair Carmichael and Victoria Atkins

Tuesday 8th May 2018 Commons Chamber

[Victoria Atkins]

That is one of the requirements in the action plan that the Government set G4S after the programme. We are very clear that whistleblowers are essential to ensuring that problems are brought to light effectively and quickly. As part of the action plan, G4S has reinforced its whistleblowing policy. All staff have been issued with cards featuring telephone numbers to enable them to raise concerns confidentially, and following work with the Jill Dando Institute, G4S has trained staff to become “speak out” champions, promoting and embedding the message that whistleblowing is not just desirable, but a clear expectation when unacceptable behaviour is witnessed. In addition, there is also the introduction of body-worn cameras, which serve, I hope, to reassure the House and others that there is transparency and that, if there are allegations, we can very quickly get to the truth of them.

[Mr Alistair Carmichael (Orkney and Shetland) (LD)]

I welcome the fact that this is a time-limited renewal. The Minister will know that many of those who are detained in these centres are there following the refusal of their applications for asylum. She will have seen the report on the BBC website today where one Home Office caseworker describes that system as being “arbitrary” in its outcomes. When it comes to the point that we renew this contract, or whatever follows it after the reviews, will the Minister give us some guarantee that we will look at not just the detention but the whole system that leads people to that point?

[Victoria Atkins]

The right hon. Gentleman will appreciate that, last week, the Home Secretary set out in two statements before the House his vision for immigration policy and the principles that he expects to be applied to immigration policy. Taking into account the reviews that are being conducted, I am sure that those principles will be very much at the forefront of his mind.

Oral Answers to Questions

Debate between Alistair Carmichael and Victoria Atkins

Thursday 11th January 2018 Commons Chamber

[Mr Alistair Carmichael (Orkney and Shetland) (LD)]

4. What recent discussions she has had with the Secretary of State for Scotland on the Sawers report on Womenomics.

[The Parliamentary Under-Secretary of State for the Home Department (Victoria Atkins)]

The Sawers report highlights many of the issues women face in the workplace. The gender pay gap in Scotland is at a near record low, but it must be eradicated completely. The Minister for Women and Equalities regularly meets Cabinet colleagues to discuss such important issues.

[Mr Carmichael]

The Sawers report was intended to be the start of a road map for the engagement of women in Scotland’s economy and not just an end in itself. I suggest that the Minister would be well advised to meet Professor Sawers to discuss how her report can now be taken forward in government.

[Victoria Atkins]

That is a very pleasant suggestion, and I look forward to meeting Professor Sawers in due course.

Investigatory Powers Bill

Debate between Alistair Carmichael and Victoria Atkins

Report: 2nd sitting: House of Commons
Tuesday 7th June 2016 Commons Chamber

[Victoria Atkins]

It has been my privilege to serve on the Joint Committee on Human Rights and the Bill Committee. I want to challenge gently the tone adopted just then by the right hon. Member for Orkney and Shetland (Mr Carmichael), because I felt during the Joint Committee and in Committee that the people whom the Bill seeks to protect and those who sadly fell on 7/7 and in terrorist atrocities since were haunting me and many other members of those Committees.

[Mr Carmichael]

Will the hon. Lady give way?

[Victoria Atkins]

No, I am going to finish this point. What is more, I met the police officers and members of the security services who hold our safety in their hands, and they do that for reasons of good faith, not bad faith. I regret the tone that has been taken, but I am conscious of the time—

[Mr Carmichael]

rose—

[Victoria Atkins]

I am not going to give way. The Joint Committee heard from 59 witnesses in 22 public panels. We received 148 written submissions, amounting to 1,500 pages of evidence. We visited the Metropolitan police and GCHQ, and we made 87 recommendations, more than two thirds of which have been accepted by the Home Office.

[Mr Carmichael]

Will the hon. Lady give way?

[Victoria Atkins]

No, thank you. The Bill Committee considered nearly 1,000 amendments, and in it the Government were led with style and eloquence by my right hon. Friend the Minister for Security and my hon. and learned Friend the Solicitor General. It was a pleasure to hear the forensic examination of the Bill by the hon. and learned Member for Holborn and St Pancras (Keir Starmer) and contributions from the hon. and learned Member for Edinburgh South West (Joanna Cherry). The scrutiny, care, considered argument and good will of those involved in the past seven months has improved this Bill. I have absolutely no doubt that it will help the security services, the police and other law enforcement agencies to protect us and to prosecute those who mean us harm. It is world-leading legislation and I commend it to the House.