Economic Update

Andrew Mitchell Excerpts

Monday 17th October 2022 Commons Chamber

[Jeremy Hunt]

Let me tell the right hon. Gentleman that I am not against the principle of taxing profits that are genuine windfalls, but as he will know well, the energy industry is very cyclical and there are businesses that have periods of feast and famine. We have to be very careful that we do not tax companies in a way that drives away investment. We have said that nothing is off the table.

[Mr Andrew Mitchell (Sutton Coldfield) (Con)]

I congratulate my right hon. Friend on his statement, which is both wise and necessary. There will be great relief across the House that the markets have responded to the statement positively, not least thanks to his economic leadership and political skill. In the run-up to 31 October, will he reassure us and the markets that the Treasury, the OBR and the independent Bank of England will work closely together and in total lockstep?

The Growth Plan

Andrew Mitchell Excerpts

Friday 23rd September 2022 Commons Chamber

[Kwasi Kwarteng]

What will end in tears are high taxes, high spend and very low growth, and that is exactly the iron circle that we are trying to break.

[Mr Andrew Mitchell (Sutton Coldfield) (Con)]

I welcome what my right hon. Friend has said, in respect of growth, about investment zones. He said that they would come to the west midlands, which I think will be very helpful in levelling up in the Birmingham area and the west midlands in general. May I remind him, however, of the importance of UK investment in tackling international problems, whether they involve pandemics, illegal migration or climate change? This is about British expertise, but it is also about British money. Can my right hon. Friend confirm that we are on track to restore what was a manifesto promise to bring back the 0.7% aid commitment in 2024?

[Kwasi Kwarteng]

We are always looking at our manifesto commitments, and given our leadership in this regard, I hope that we can come to the 0.7% as soon as is practicable and as soon as the public finances allow it.

Budget Resolutions

Andrew Mitchell Excerpts

Wednesday 27th October 2021 Commons Chamber

[Mr Harper]

I took an intervention from the hon. Gentleman because I anticipated what he might say. I listened carefully to the Chancellor, and he set out a Budget that delivers not just for every part of England but for every part of our United Kingdom. We on this side of the House—and I think, to be fair, those on the Labour Benches—want to ensure that we keep our country together. We are spreading opportunity to every part of the United Kingdom. I listened carefully to the Chancellor, and this Budget delivers a significant increase in resources to the Scottish Government. I hope that they spend those resources wisely, although given their track record, I am pretty confident that they will not.

[Mr Andrew Mitchell (Sutton Coldfield) (Con)]

Will my right hon. Friend give way?

[Mr Harper]

Let me make a little more progress, then I will of course give way to my right hon. Friend.

I thank the Chancellor for agreeing to the levelling-up bid made by my constituents. It was a partnership bid by Hartpury University and Hartpury College, Forest of Dean District Council and Cinderford Town Council, and it focuses very much on improving opportunities for my constituents. They worked collaboratively with me and my office, which put me in a strong position to make the case to Ministers, including the Chancellor, and it got us a really good result today. This was a real Forest team effort. Does my right hon. Friend still wish to intervene on me?

[Mr Mitchell]

indicated dissent.

[Mr Harper]

I see that he is allowing me to make some progress.

We have a strong track record in my constituency. We got money from the Getting Building Fund last spring for the Construction Skills Accelerator Centre, which will improve skills and productivity in the construction industry. That centre will be completed and opened this December, which demonstrates turning around Government support and money in partnership with the private sector and delivering real change on the ground very quickly indeed.

I also welcome what the Chancellor set out on alcohol duty. That will be particularly welcomed by small producers in my constituency, especially our fantastic cider makers, including Severn Cider. Also, picking up on the theme of leisure, retail and hospitality, the 50% reduction in business rates will be a tremendous benefit to that sector, which was hard hit throughout the pandemic. That extra resource will be very welcome. Also, £175,000 from the community ownership fund has enabled the Rising Sun pub in Woodcroft to be saved and to become a really strong community asset.

Turning to the Budget themes overall, I think the Chancellor’s focus on fiscal responsibility and sound money is incredibly important. This is not about ideology; it is the key to our future prosperity. It is because we took sensible, difficult decisions between 2010 and 2019 that, when the pandemic hit last year, we were able to spend what was required to protect jobs and to defend people across our country. If we had not taken those difficult decisions, we would not have been in a position to respond accordingly. It is important to focus on sound money because inflation is a real threat, and it is a threat to the poorest. That is why it is important for the Chancellor to keep control of the public finances—I am pleased that he has done so today—and of the level of investment to drive up productivity. I agree with all those speakers on our side of the House who have pointed out that we have to deliver productivity in order to ensure that we can have high wages without driving up inflation. That is absolutely critical.

Finally, I want to focus on a few themes from the Budget. The spending that we rolled out last year on the pandemic, particularly on protecting jobs, keeping unemployment low and reducing the long-term impact of covid, will turn out to be one of the wisest decisions that we took. It has been welcomed by my constituents, and I think that our decision to minimise the economic impact of the pandemic will be something that we will look back on and be thankful for. That decision does of course mean that we have grown the size of the economy. We have had to put up taxes, which I am not comfortable with and nor is the Chancellor, but it was necessary and we would have regretted doing anything differently.

I welcome the Chancellor’s significant reduction in the taper rate for universal credit. This will ensure that work pays. It will encourage everybody on universal credit to get into work—we are seeing a record number of vacancies in the economy—or, if they are in work, it will make it absolutely worth their while to take on extra hours or increase their skills to earn extra income. That is the right set of incentives.

In closing, to stick to the Chair’s informal time limit, I will focus on the Chancellor’s final remarks on the size of the state and the direction of travel. I am pleased he has set out an ambition for this Government to reduce the size of the state, enabling people to take more responsibility for themselves. It was necessary to grow the state to deal with the pandemic, but he has set out a clear direction of travel on empowering individuals. I am pleased to back that mission, and I am pleased to support the Budget.

I commend the Budget to all Conservative Members.

[Mr Andrew Mitchell (Sutton Coldfield) (Con)]

Thank you, Madam Deputy Speaker, for calling me on this first day of the Budget debate. I draw the House’s attention to my interests, which are declared in the register.

I do not think any Finance Minister or Chancellor has faced a more difficult year than my right hon. Friend the Chancellor has faced, and he has commanded the House and carried out his duties with exceptional skill and devotion. This extremely good Budget comes at the end of that very difficult year, so I start where my right hon. Friend the Member for Forest of Dean (Mr Harper) left off.

As the Chancellor knows, I have been extremely concerned about the cut to universal credit. I am also conscious that it was a temporary measure designed by the Government to put their arms around people who were very vulnerable as the pandemic got going, but nevertheless any such cut in benefits is a controversial matter. He has been extraordinarily skilled in reducing the taper rate of universal credit, which is an extremely good approach, on which I congratulate him.

I have three brief points. The first point is local and regional, and it concerns the west midlands and, in particular, my constituency of Sutton Coldfield. We are pleased to have £1 billion of transport funding for the west midlands, and that funding has also gone to the Mayor of Greater Manchester. It is backing for the regional mayoral structure, and it is very welcome. Money from the fund will enable Sutton Coldfield to start major work on town centre renewal. The town centre renewal plan is all set, and taxpayers’ money is needed to address some of the transport issues, so I am pleased with this week’s announcement.

Secondly, in the west midlands we also want money from the skills budget, and the Prime Minister singled out Andy Street, our Mayor, for his work on boot camps for digital retraining. That model was pioneered in the west midlands and is now being taken out nationally. This is incredibly important if we are to capture the vital growth that a number of my hon. and right hon. Friends mentioned. The skills agenda is vital. There is money for skills, and we want it in the west midlands.

Thirdly, we want money to ensure that homes for the future are built on brownfield sites and not on the green belt. We are looking for a £200 million accelerator in the west midlands so that we can get houses built and protect the green belt. In my constituency I have one of the biggest house building programmes in the country at Langley, on Sutton Coldfield’s green belt. The scheme was much loved by the Labour Birmingham City Council, and it was quite wrongly waved through by a Conservative Secretary of State. That is done now, and we will get the best we can for the town from that development. We want to see homes built, but we want to see them built in the right places, which is why the brownfield money is so important.

In the royal town of Sutton Coldfield we have four particular priorities: the town centre, the cottage hospital, our royal park and the town hall. They all require, for the development and the aspirations that we have for them, a little bit of taxpayers’ money, and we are glad that on at least one, if not the other three, we have managed to convince the Government and the regional Mayor of the importance of that support. That is my first point.

Secondly, moving from the parochial to the national and, indeed, the international, as we look toward the COP that is coming up shortly it is clear that the Government are doing extremely well on the UK’s climate strategy. The report published last week sets out the importance of our reaching net zero emissions by 2050; how the UK will be powered entirely by clean energy by 2035; the subsidies for replacing domestic boilers; the incentives to switch to electric vehicles, which is incredibly important in the west midlands in respect of Jaguar Land Rover, which will make only electric cars from 2025; the quadrupling of offshore wind; and the significant advances in carbon capture and storage. Of course, the agenda will also unlock 500,000 new jobs, as well as huge private sector investment. Those are important matters on which Britain is leading and clearly setting the right example, which is very good. By contrast, I am keeping my fingers crossed that the Prime Minister’s unique boosterism will pull a rabbit out of a hat for the COP, because as he himself has said the approach to the COP is challenging.

We learned today from the Public Accounts Committee about the waste of £37 billion on NHS Test and Trace; I merely point out to those on the Treasury Bench that the £4 billion that has been cut so damagingly from the international development budget amounts to just 10% of that amount. Of course, it would be churlish of me not to recognise that today the Chancellor asserted his conviction that we must return to the 0.7% target and that we will be able to do so by 2024-25. I am fighting the inner cynic in me when I note that that commitment has been given for a period just after the likely date of the next election. Nevertheless, if the 0.7% is restored by that date, I promise the Chancellor of the Exchequer—if he is still Chancellor and not Prime Minister by then—that if, when he progresses north to his constituency at the end of that week, he can take the time to come to the royal town of Sutton Coldfield, I will buy him the best dinner that the town can provide. It would be an extremely good dinner. I very much regret that that cut was made but I am pleased to hear that the Chancellor puts a priority on this. We in the House must never forget that the development budget not only makes some of the poorest people in the world safer and more prosperous but makes us in Britain, in our constituencies and economic centres, safer and more prosperous.

Will those on the Treasury Bench clarify whether the funding for the special drawing rights that the IMF has issued and for the other measures, particularly the vaccines, will come out of the 0.5% of GNI, as it now is, or be in addition to that? Perhaps a Minister could make clear the position on that at some point.

Thirdly, on value for money, I am conscious that the taxpayer is going to provide an immense amount of money for the NHS catch-up and for social care. When the Government announced what is a very welcome measure indeed in the House, I asked what plans the Treasury had to monitor what taxpayers will get for the additional money; the response from those on the Treasury Bench was not as good as it could have been. I want to see Treasury officials all over this money. It will be hard-earned money provided by taxpayers and we need to demonstrate to them one of the mantras of the Department for International Development, before it was vapourised: that for every hard-earned pound taken off the taxpayer, 100p of value must be delivered on the ground. I hope that the Treasury will make certain that the Departments that spend the extra £12 billion a year raised through national insurance justify every penny of it, so that we can assure our constituents that it really is successful, incremental spending that works to their advantage.

Health and Social Care Levy Bill

Andrew Mitchell Excerpts

2nd reading
Tuesday 14th September 2021 Commons Chamber

[Steve Barclay]

There is a precedent in the form of what the hon. Gentleman’s party did in 2002-03. I do not think it is fair for him to say it is farcical to do something which was done by the Government whom he supported. He has opened up a much wider question about hypothecation, on which many a former Treasury official has commented, and I think that that is a separate debate; but there is a precedent for the use of national insurance in the way that my right hon. Friend the Chancellor has set out.

Let me stress that all revenues generated by this increase will be ring-fenced and paid not just to the NHS in England, but to NHS Scotland, NHS Wales, and the equivalent in Northern Ireland.

[Mr Andrew Mitchell (Sutton Coldfield) (Con)]

I have a great deal of sympathy with what my right hon. Friend is saying, and I think the Government deserve considerable credit for grasping this nettle at last, but may I ask for an assurance? When the charge has been introduced, will he ensure that every six months a Treasury Minister comes to the House and tells us what results are being achieved—what money has been raised through the levy and what results have been delivered; in other words, what additional treatment has been achieved—so that we can see and show our constituents why it was right to raise this levy and what they are getting for the money?

[Steve Barclay]

As a former Chief Whip, my right hon. Friend knows better than most that it is for the House to decide which Ministers come to the House and provide updates. Obviously, in respect of regular fiscal events and others—[Interruption.] It is. The right hon. Member for Leicester South (Jonathan Ashworth) chunters from a sedentary position, but through urgent questions and other such devices it is always for the House to decide which Ministers come here and, of course, there are regular events such as Treasury and other departmental questions. [Interruption.] He chunters but, as I have said, there are many procedures through which updates—[Interruption.] The procedures to which I referred.

Under clause 2, this revenue will be ring-fenced for health and for social care—

[Mr Mitchell]

Will my right hon. Friend give way?

[Steve Barclay]

I will make a little progress. I have taken a number of interventions, including one from my right hon. Friend.

Existing NICs reliefs and allowances will also apply to the levy. That will mean that 40% of all businesses will not be affected owing to the employment allowance. When it comes to individuals, those earning more will pay more. Indeed, the top 14 per cent. of taxpayers will pay about half the revenues. Conversely, at least 6.2 million people earning less than the NICs primary threshold will not pay the levy at all.

0.7% Official Development Assistance Target

Andrew Mitchell Excerpts

Tuesday 8th June 2021 Commons Chamber

[Mr Andrew Mitchell (Sutton Coldfield) (Con)]

I beg to move,

That this House has considered the matter of the 0.7% official development assistance target.

I draw the House’s attention to my entry in the Register of Members’ Financial Interests.

Mr Speaker, yesterday you made one of the strongest statements that I have heard from the Chair in more than 30 years, and you made it clear that the House should receive from the Government a meaningful vote. Naturally, in accordance with what you have said, we do not seek to divide the House on the motion today. We seek the meaningful vote that will enable the House to decide whether the Government can break our promise and arguably our law.

I see that my right hon. and hon. Friends and I are described as rebels. It is the Government who are rebelling against their clear and indisputable commitments. Who are these so-called rebels? A short perusal of yesterday’s Order Paper shows that we have among our number eight Select Committee Chairs, four distinguished former Select Committee Chairs, 16 former Ministers, 12 Privy Counsellors and four knights of the realm. From the new intake, my hon. Friends the Members for Totnes (Anthony Mangnall), for Milton Keynes North (Ben Everitt), for Bury South (Christian Wakeford), for Penrith and The Border (Dr Hudson) and for Keighley (Robbie Moore), along with others who have recently arrived in this House, have shown great courage and determination in the face of the possibility of being tarred and feathered by the Government Whips Office.

We are also supported by every former Prime Minister and, I believe, by every former leader of all four major political parties. Over the weekend, the Archbishop of Canterbury said:

“The foreign aid cut is indefensible…Let us…pray”

that it is reversed

“and that our unconscionable broken promise to the world’s poorest people is put right.”

All four distinguished current or former Chairs of the Public Accounts Committee who are in the House support our cause. My right hon. Friend the Member for Gainsborough (Sir Edward Leigh) describes himself as the last Thatcherite on the Government Benches.

[Mr David Davis (Haltemprice and Howden) (Con)]

Cheek!

[Mr Mitchell]

My right hon. Friend the Member for Haltemprice and Howden (Mr Davis) might possibly wish to disagree there. My right hon. Friend the Member for Gainsborough said:

“There is no public accounting justification for slashing budgets by 80% in this way. It is like telling the builder before he finishes your garden wall that you won’t pay at the end. Cancelling projects overseas is just a waste of taxpayers’ money when we should be providing long-term stability for schools, clinics and clean water projects.”

--- Later in debate ---

[Mr Speaker]

May I just gently say that we have a lot of speakers and I want to hear from everybody? If you are going to intervene, I am sure that you will understand if you go down the speaking list.

[Mr Mitchell]

The hon. Gentleman is absolutely right. Of course, what he says has been reinforced by every single member of his party who serves in the House, and it is the point that my right hon. Friend the Member for Gainsborough, a former Chairman of the Public Accounts Committee, was making: if we turn this expenditure on and off in this way, the taxpayer does not get proper value for money.

Nor is this about party politics. All 650 of us elected to this House at the last election promised to stand by the 0.7%. The Bill enshrining the 0.7% in law was passed unwhipped in this House, with just six dissenters. Outside the House, in every single constituency in the country, there are people taking action as part of Crack the Crises, the growing environment and development group. Each and every one of us is accountable to those constituents, who are taking action in their local schools, colleges, churches, mosques, charity shops, women’s institute branches, congregations and community groups.

Twelve million people—an average of 15,000 per parliamentary constituency—are supporters of the member organisations of that coalition, and they must be heard. The people who sponsor children through development organisations, the members of churches that are twinned with others in the developing world, the people who were there for Jubilee 2000 and for Make Poverty History—they do not forget when we break our promises to them; they organise.

I can assure the House that, were it not for the covid restrictions, the same people who made the human chain around the Birmingham G8 summit and the quarter of a million people who marched on Edinburgh before the Gleneagles G8 would be preparing today to descend on Cornwall to make their views known at this G7 and to protest this unethical and unlawful betrayal. They would be joined by a whole new generation of young people who are watching this Government break our promise to the world’s poorest. They do not like what they see. This weekend, they may not be on the streets, but they will be watching, and they will remember.

For two decades, the UK has been a development leader, not just because that is morally right and accords with our values, but because it is in our own national interest. By making the countries we seek to help safer and more prosperous, we make life for ourselves here in Britain safer and more prosperous.

[Sir Bernard Jenkin (Harwich and North Essex) (Con)]

My right hon. Friend has been courteous and persuasive in trying to get me to join his cause, but I have declined to do so because I think that the Government are doing precisely what he describes but in ways that do not qualify as aid. I have asked the Government to clarify all the other things that we are doing that are contributing to the reduction of global poverty and, indeed, what we will do with the vaccine programmes to contribute to the alleviation of disease and distress in the poorest countries.

[Mr Mitchell]

I very much hope that my hon. Friend will stay for the whole debate so that he hears the views across the House. I am sure that will be both instructive and interesting for him.

Mr Speaker, the way the Government are behaving strikes at the heart of our Parliament, as you set out from the Chair yesterday. We cannot secure a meaningful vote. Had we been able to do so yesterday, as I intimated to the House, we would definitely have won by nine, and probably by nearer 20. It is precisely because the Government fear that they would lose that they are not calling a vote. That is not democracy. When countries behave like that in Africa, we British say that they have got it wrong. The Government need to remember that the Government and the Executive are accountable to Parliament, not the other way round, and most especially on issues of supply, as the Minister—he is a very good Minister—knows. That applies in all circumstances, whether the Executive are being run by King Charles I or Boris Johnson.

The Government make two key arguments: first, that they are still spending a huge amount of money—I am sure that is what my right hon. Friend the Minister will say this afternoon—and, secondly, that we are living in unprecedented times for our economy and they will bring the 0.7% back. Let me start with the first—that we are still spending a huge amount of money. Of course, that is entirely correct, but we all promised to spend 0.7% of our GNI, not to change the target and spend 0.5%. All of us made that promise—I have seen every single Member’s manifesto at the last election, and every single elected Member made that promise.

It is arguable, at the least, that the action the Government are taking is unlawful. One of the most senior and distinguished lawyers in the country, the warden of Wadham, Oxford, a former Director of Public Prosecutions, has made it clear that the Government are acting unlawfully because they have changed, rather than missed, the target. I argue to the House this afternoon that what the Government are doing is unethical, possibly illegal and certainly breaks our promise.

On the point about the level of expenditure and the £10 billion, it is rather like buying a car and shaking hands on a deal at 15 grand, only to do a runner while the poor fellow is counting the cash after you have legged it, having handed over only 10 grand. It is not proper, it is fundamentally un-British and we should not behave in this way. It is about the girl whose school closed in South Sudan last week after the headteacher read the letter from the Foreign Office explaining that it is only temporary.

The second argument is that we live in unprecedented economic times and that the Government will bring the 0.7% back, but the 0.7% is configured precisely to take account of our economy. When the economy contracts and goes down, so does the amount of money spent under the 0.7%, and when it increases, that amount goes back up. We are talking about 1% of the money that the Treasury quite rightly spent on covid last year to sustain and support jobs, families and employment. This is 1%—it is practically a rounding error in my right hon. Friend’s books.

We offered an olive branch to the Government last night, which the Government could have accepted, and then we could all have cracked on with other things, by asking them to bring the 0.7% back next year. We accept that they are not going to bring it back this year, but we asked them to bring it back next year, when the Governor of the Bank of England says that the economy will have rebounded to pre-covid levels and growth will be strong. If the Government were serious about bringing it back when the economy improved, they would have accepted the olive branch that my right hon. and hon. Friends and I offered.

Everyone knows what this is about. It is not about the 1% rounding error in the Treasury’s books. It is about the red wall seats. The Government think that it is popular in the red wall seats to stop British aid money going overseas. Indeed, one Treasury Minister told me that 81% of people in the red wall seats do not approve of spending British taxpayers’ money overseas. But we have to be careful about the question we ask, because other polling in the red wall seats shows that 92% of people there do not approve of cutting humanitarian aid. It is also a very patronising attitude to people who live in the red wall seats, because when these dreadful famines, disasters and floods take place, it is the people in the red wall seats who are the first to raise money through car boot sales and pub quizzes to try to help those who are caught. In the words of Talleyrand, the French statesman, this is worse than a crime; it is a mistake. What my right hon. and hon. Friends and I—the so-called rebels—are trying to do is to keep the Government straight.

And so we come to this week’s G7 summit, when the leaders of the richest nations will assemble in Cornwall. My right hon. Friend the Prime Minister will be chairing the summit, and he goes into it in the teeth of a global pandemic, when Britain is cutting its support to the poorest. No other country represented at the G7 is doing such a thing. The French have now embraced the 0.7%. The Germans will spend more than 0.7% this year. The Americans—by far the biggest funders in the world—are seeking an increase through Congress of $14 billion in the amount that is spent. We are the only ones going backwards.

Other G7 countries are noticing what the Government are doing. Is it any wonder that, in a letter to President Biden, a dozen Members of Congress have urged him to upbraid Britain for breaking its promise? One sentence in their letter made me wince. It reads as follows:

“Cutting back on foreign assistance during the worst humanitarian crisis of our generation only undermines our collective global response.”

This is what the journalist who used to serve in this House and who probably understands the Conservative party best said at the weekend:

“Try though seasick government whips will to mount one, there is no civilised defence of this cut. This cut looks like what it is: a cheap and brutal gesture, a piece of domestic applause-seeking”.

[Liam Byrne (Birmingham, Hodge Hill) (Lab)]

The right hon. Gentleman is making a brilliant speech. I just want to flush out one point, which I hope will be a point of consensus. It is possible that this weekend we will get agreement on a fresh issue of $650 billion in special drawing rights. The UK will have surplus SDRs and it is possible that they could be recycled to support aid. It would be a regrettable accounting trick if that, in any way, counted towards making good the cut that has been made. Is that a point of consensus across the House?

[Mr Mitchell]

The right hon. Gentleman makes a good and useful point, and the decisions made on the SDRs will be extremely helpful.

We come, finally, to the essence of all of this. Because of the way the development budget is configured, these terrible cuts are falling first and hardest on the humanitarian sectors. Let me just mention four of them. The first is girls’ education. The Prime Minister has rightly said that it is his main aspiration on these international development issues—this is strongly supported by my hon. Friend the Member for West Worcestershire (Harriett Baldwin)—to ensure that all girls get 12 years of quality education. That is a wonderful and noble British initiative, but what has happened to the funding? It has been cut by 25%. So on the one hand we have the words—the aspiration—and on the other we have the reality of the 25% cut. Worse than that, UNICEF, which has a fantastic reputation and which the British Government judged just a few years ago to be the most effective of all the UN agencies, has had a cut of 60%. On clean water and sanitation, which is pivotal if we are to conquer this pandemic among the poorest of the world, some 10 million people who were expecting to receive British taxpayers’ support will not now get it. Funding to the UN to save the lives of people suffering with HIV/AIDS has been cut by 80%, which is a death sentence for the people who would have been helped. Finally, we are going to end food assistance for 250,000 people. These are not people who have missed eating for a few days; they are people who are starving, and we are going to cut our support for them directly.

I have never forgotten the experience I had as Development Secretary in Karamoja, in northern Uganda, where I stood under a tree next to a football pitch, which was covered by children who were starving. There were about 200 children there and they were waiting in line. They were suffering from acute malnutrition, and British taxpayers’ money and British humanitarian workers were trying to help them. If we catch them early enough, when they are floppy but not actually medically critical, we give them Plumpy’Nut, a biscuity peanut substance that costs about a 5p a head, and they will be recovered in about an hour and probably running around playing football. However, if we miss that point, they have to go to a clinic, have a drip up and it costs about $180 to put them right.

[Steve Brine (Winchester) (Con)]

Does what my right hon. Friend has just said about the 5p not make the point that, although £4 billion is a small amount for a rich country such as ours, it makes an enormous difference in the countries we are trying to help?

[Mr Mitchell]

My hon. Friend is absolutely right and he puts it enormously eloquently. I end my remarks by saying that that story from Karamoja in northern Uganda has lived with me from the day I saw those things. I will be thinking of those children in this debate and I urge my right hon. and hon. Friends to think about them as well.

--- Later in debate ---

[Steve Barclay]

The provisional data shows that for the 2020 ODA figures, the 0.7% was met. The point is that the Act allows for the economic and fiscal instance that I just set out—it is in section 2. If the UK were to spend 0.7% of gross national income as ODA, it would cost the country an additional £4.3 billion this year. Given our commitment to fiscal sustainability, we could offset that either by raising taxes or by cutting public spending. [Interruption.] We can come on to that. To put that in context, it means a 1p increase in the basic rate of income tax or about a 1% increase in the standard rate of VAT at a time when taxes are at a historical high.

[Mr Mitchell]

The Treasury really must do better than that, because 1p on income tax is worth nearly £6 billion, so the increase would be much less than 1p.

[Steve Barclay]

In the context, it is £5 billion to £6 billion. My right hon. Friend did not set out in his speech how he would address that gap. Which fiscal measures was he suggesting? Was he suggesting a specific tax, in which case I did not hear that in his remarks? Was he suggesting more borrowing, in which case one needs to look at the impact on our stock? Was he, in fact, suggesting spending? [Interruption.] From a sedentary position, the right hon. Member for Ashton-under-Lyne (Angela Rayner) mentions Test and Trace. Given that 80% of the Test and Trace budget relates to testing, if she is saying that she wants to get rid of PCR testing or lateral flow testing, she needs to set that out in detail. That speaks to the lack of detail provided; it is strikingly absent from the alternatives put forward.

The fundamental point before the House is that the scale of our overseas aid remains significant. In fact, we continue to lead the world in overseas development. This year we will spend more than £10 million to improve global health, fight poverty and tackle climate change, including £400 million on girls’ education in 25 countries, and we are doubling to £11.6 billion our commitment to international climate finance for the period 2021 to 2026, with at least £3 billion for climate change solutions that will protect and restore nature and biodiversity. According to the OECD, in 2020 we were one of only two G7 countries to actually meet the 0.7% target and the only country to do so each year since 2013. Even after the change we are debating today, we are still the third largest donor in the G7 as a percentage of gross national income, and 0.5% is considerably more than the 29 countries on the OECD’s Development Assistance Committee, which average just 0.41%.

Importantly, the Foreign Office makes its aid spending choices based on maximum impact, coherence and value for money. The Integrated Review has reaffirmed our pledge to fight against global poverty and to achieve the UN sustainability development goals by 2030. We are the fifth largest contributor to the UN peacekeeping budget, the third largest bilateral humanitarian donor, the second largest member state donor to the World Health Organisation, and among the world’s largest donors to the COVAX advance market commitment—the global initiative supporting developing countries with access to vaccines. The funding we will continue to make available to countries all over the world is helping to educate young girls, boosting diversity, tackling climate change, vaccinating the needy against deadly diseases such as Ebola and malaria, and improving the nutrition of staple food crops—millions of lives improved, millions of lives saved.

This is a generous and outward-looking country whose impulse has always been to help others around the world. We do not and we will not shy away from making a determined contribution to addressing the world’s problems. But at the tail end of a huge economic emergency, we also have a responsibility to the British people. We are absolutely clear about our intention to return to 0.7% of our national income on overseas aid when the fiscal situation allows, but cannot do so yet. We will, however, keep the matter under careful and regular review. I know that Members on both sides of the House will make their cases cogently and passionately, but for now, the tough choice is the right choice.

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[Mrs Maria Miller (Basingstoke) (Con)]

May I draw the House’s attention to my entry in the Register of Members’ Financial Interests?

We have heard some very powerful speeches today. Of course, I pay enormous tribute to my right hon. Friend the Member for Sutton Coldfield (Mr Mitchell). I respect his impassioned arguments and long-standing commitment to international aid, but, respectfully, I have to offer an alternative view today.

The UK’s commitment to international development is globally recognised. We are proud of our commitment to supporting developing nations, and we have heard that today. From my many years here, I can say that it has not always been this overwhelming a debate in the past. We have to be honest. The unprecedented circumstances of the past 12 months have forced this Government, as it would have done any Government of any complexion, to take some very difficult decisions. Circumstances are exceptional, because so much of our money—probably a globally unprecedented package—was put together to shore up our health service and to shore up our businesses in the face of a global pandemic. I think the Government are right—

[Mr Mitchell]

rose—

[Mrs Miller]

Will my right hon. Friend just give me a moment to make my argument?

The Government are right not to put their head in the sand. It is not possible to continue with business as usual. These are not normal times. We have a responsibility as a Parliament to act, and to simply dismiss £4 billion-worth of expenditure as a rounding error is, I think, the first time I have heard such a thing in a debate such as this.

[Mr Mitchell]

I am very grateful to my right hon. Friend for giving way. Obviously, she and I do not fully agree on this. Would she like to speculate on why Britain alone of the wealthy nations is cutting its aid when everyone else is either maintaining it or increasing it? Why is our economy so bad that we have to balance the books on the backs of the poorest people in the world, unlike all the other rich countries?

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[Anthony Mangnall (Totnes) (Con)]

I congratulate my right hon. Friend the Member for Sutton Coldfield (Mr Mitchell) on everything that he has done to get this debate, and the team behind him on their extraordinary job in helping to run this campaign.

It is, of course, no easy thing to go against the grain of one’s party—although given the amount of times I have rebelled, I am not sure the Whips are going to believe that of me—but I do not do it lightly. I do it with the consideration of why I was sent here, what I believe in, and what, given their views, people who support this party would expect us to do.

Over the course of my time in Parliament, we have had numerous debates about global Britain. For me, it is quite simple: the definition of global Britain and what it embodies is defence, diplomacy, trade and, of course, development. Each one of those pillars relies heavily on the other. Our trade ambitions, our defence operations, our diplomatic networks and our development programmes all peak and trough depending on one another’s successes. Whatever the variation, that quartet of sectors helps to promote Britain on the world stage. They represent a Britain that, as my right hon. Friend the Member for Haltemprice and Howden (Mr Davis) pointed out, does not step back but steps forward. In trade, we are striking many new positive free trade agreements; we are being ambitious, global and outward-looking. In defence, we are sending our aircraft carriers around the world. Our diplomatic network is still viewed as one of the finest in the world. Up until last year, I would have maintained that our commitment to 0.7% was not just the correct thing to do but an act of global leadership that benefits our trade, defence and diplomatic missions, all of which are truly reflective of global Britain. In committing to the 0.7% target, we offered not just warm words but firm action for those most in need.

I have listened carefully to the words of colleagues during this debate and over the course of the past year. I have heard all too often that we simply cannot afford to pay for the 0.7% development budget given the pandemic and the economic climate. Leaving aside the fact that the 0.7% target fluctuates depending on the strength of our economy, ensuring that in good times there is more money and in bad times there is less, I humbly remind everyone in this House that we brought it in in the wake of the financial crisis, when our economic growth was possibly at its lowest, with no forecast to boost it.

[Mr Mitchell]

My hon. Friend is making an extremely good and sensible speech. May I thank him for the immense amount of hard work and leadership he has undertaken in advancing this argument and getting it to this point today?

[Anthony Mangnall]

That is incredibly generous of my right hon. Friend and I appreciate it.

We stood up just post the 2010 election because it was the right thing to do and because it demonstrated our global leadership and encouraged others to follow suit. It is simply not the case that other countries have not followed suit, with France and Germany now hitting the 0.7% target and America doing likewise, reflecting the fact that our leadership has encouraged them to do so. With a new President in the United States who is reaffirming the rules-based order, we can truly say that we have a global group that will support 0.7%, but not if we do not stick to our guns on this. We have been able to assist in humanitarian crises and conflict zones around the world. We have been able to address the health issues, sanitation issues and education issues, but all that has been put into jeopardy. As has already been mentioned, with this cut from 0.7% to 0.5%, we are cutting global health budgets —down by 14%; girls’ education—down by 25%; clean water—down by 80%; the Joint United Nations Programme on HIV/Aids—down by 80%. All these budgets are being cut during a pandemic where the problems are exacerbated as opposed to diminished. No impact assessment has been undertaken and no review has been done of what those cuts would mean to the different organisations. It is a simple stroke of the pen, no vote in Parliament and absolutely no consideration for the consequences.

It is a staggering miscalculation to ignore our international obligations and moral duties, because we cannot protect ourselves at home if we do so. Many have argued that that money should not be spent abroad, but if we wish to tackle terrorism, asylum and climate change, we have to be out there. We have to be co-operating on an international scale to ensure that each of these points is addressed and that we live in a truly globalised world.

We have been told that tough fiscal decisions will have to be made, and I accept that. I recognise the extensive cost of the Government’s very generous support packages, but as of today, the only area in which the Government have cut funding has been the 0.7%, minus of course the public sector pay freeze. Perhaps the Minister —when he returns to the Chamber—might answer why that is. The party committed to 0.7% in 2019, 2017, 2015 and 2010. We all won those elections on the basis of promising that to our electorate. It would be a shame if we could not stand up for the promise to the world’s poorest people that we made to our electorate and deliver on all the programmes depending on UK funding.

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[Alexander Stafford (Rother Valley) (Con)]

I rise today to make a simple yet resounding contribution to the debate on behalf of the people of Rother Valley, who wholeheartedly support the Government’s decision temporarily to reduce foreign aid from 0.7% to 0.5% of our GNI. The coronavirus pandemic has resulted in the most severe economic situation in 300 years, and residents across my constituency are experiencing great hardship, from losing their jobs to struggling with their mental health. My position is clear. I was elected to look after the people of Rother Valley first and foremost, and I shall do exactly that.

I cannot support proposals to allocate 0.7% of our GNI to foreign aid when there is deep-rooted poverty in my own constituency. Across Rother Valley, the claimant rate is about 5.5% and youth unemployment stands at about 10%. This has massively increased because of the coronavirus pandemic, and it is far too high. For example, in Maltby a staggering 8% of all the residents are unemployed. In fact, Maltby in Rother Valley is one of the most deprived wards in the country, and this situation is mirrored in other pockets throughout Rother Valley, such as Swallownest and Dinnington. That is where our aid money should be going. That is where the support should be going during this national emergency. It should go towards helping to level up Rother Valley for the British people.

But more importantly for this debate is the fact that we are not donating our own money. We are not donating taxpayers’ money for foreign aid, although that in itself would warrant examination; instead, we are sending abroad money that the Government and the state are borrowing. That’s right: we are borrowing money when we can least afford it so that we can send it abroad to foreign powers. How ridiculous that sounds! We are in debt, and getting further in debt because of the coronavirus pandemic, yet we are borrowing more money so that we can send it abroad. This is not our money; we are borrowing this money, and we are getting our own country into more and more debt. Surely we cannot afford to do that at this point.

On top of that, we should be careful about where some of this money is going. We are sending vast sums to dictatorships, to countries with space programmes and nuclear programmes, and to nations that have been receiving aid for decades with little change or positive results. It is a disgrace that we are sending aid to the People’s Republic of China—a hostile state with advanced military and industrial programmes led by a communist regime that threatens the rules-based world order and British interests across the globe—while we still have homeless veterans sleeping on our streets. That is not acceptable.

[Mr Mitchell]

My hon. Friend mentions China, and that is a very good point because we should not be spending any aid in China. It was cancelled on my first day in office 10 years ago, unless it was legally required, and I am afraid that, in my view, the aid is being spent wrongly by the Foreign Office.

[Alexander Stafford]

I thank my right hon. Friend for that clarification, but owing to the time I will move forward and end my speech shortly.

Of course we should donate money to the most vulnerable, and my right hon. Friend the Minister has mentioned those who most need it. We should never forget that the UK is the third largest donor in the G7, donating more than £10 billion this year alone, and that we have led the world in providing vaccines to poorer countries, but what seems to have been lost in the noise is that the Government have committed to returning the aid budget to 0.7% of GNI when fiscal circumstances allow. There is no doubt that this will be the case. In fact, the Conservatives are the only party to have ensured that we have met the 0.7% target—Labour has consistently missed it. That sums up the difference between the Conservatives and Labour: we are honest with people about the difficult choices that protect the British people. We are not flip-flopping; we are trying to make difficult choices at a difficult time, in this difficult situation.

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[Mr Mitchell]

Madam Deputy Speaker, I thank you and Mr Speaker for granting this Standing Order No. 24 debate today. I urge the Minister here today, the Chief Secretary to the Treasury, to hear the voice of the House. He is a decent and understanding fellow, and I hope he will reflect on what he has heard this afternoon. I believe that only four of the very many people who have spoken supported the Government’s cuts, and I very much hope he will reflect on the innate decency of the British people in what he has heard from Members from all parts of the House this afternoon. The House is not with the Government on this and they should hear that. They should also hear the voices of their loyal Friends on these Benches; we want the Government to get it right. We are genuinely hugely concerned. We know that the cuts will lead inevitably to hundreds of thousands of avoidable deaths, and we are worried about the trashing of our international reputation. These concerns are shared across the House, by the Government’s friends, as well as by the people who are not warm towards this Government. I urge the Chief Secretary to consider what he has heard this afternoon and to reflect upon it in the discussions that he is having in the Treasury.

I note that my colleagues and I were referred to in a normally very wise national newspaper as the sort of people who, “Attend left-wing dinner parties in north London.” I confess that when I am London and not in my constituency of the royal town of Sutton Coldfield, I do live in Islington, but I should make it clear that most of my hon. Friends who have joined me today would not be seen dead at a left-wing dinner party, let alone one in north London.

I am extremely grateful to you, Madam Deputy Speaker, for chairing the debate and giving the House the chance to consider these matters, influence the thinking of the Treasury and its Chief Secretary, and try to ensure that we get this right.

Better Jobs and a Fair Deal at Work

Andrew Mitchell Excerpts

Wednesday 12th May 2021 Commons Chamber

[Rishi Sunak]

I will make a tiny bit more progress.

Taken together, over the last year and this, our plan for jobs is providing over £407 billion of support for British people and businesses—a historic package of economic support unmatched in peacetime—and the evidence shows our plan is working. GDP statistics published only this morning show that the economic impact of the lockdown at the start of the year was less severe than had been expected and that there are clear signs that we are now on our way to recovery. The Bank of England said last week that it now expects the economy to return to its pre-crisis level by the end of this year—earlier than it previously thought.

[Mr Andrew Mitchell (Sutton Coldfield) (Con)]

My right hon. Friend has just given us the excellent news that the economy should have rebounded by the end of this year. He and I have discussed on a number of occasions the importance of international development. In view of that, can he confirm to the House today that he will restore the 0.7% target at the end of the year when the economy has so recovered?

[Rishi Sunak]

I appreciate all the constructive conversations my right hon. Friend has had with me on this topic, which I know he feels passionately about. As he will know, while our economy will have recovered its pre-crisis levels, the damage to our public finances is much longer-lasting. That is what led the Government to make the difficult but I hope understandable decision to temporarily divert from the 0.7% commitment, with a full intention to return to it when the fiscal situation allows, but in the meantime to remain one of the leading donors to the causes that both he and I are passionate about.

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[Mr David Davis (Haltemprice and Howden) (Con)]

When I saw that I was number 7a on the call list, I thought perhaps I was the first reserve for my hon. Friend the Member for The Cotswolds (Sir Geoffrey Clifton-Brown); I did not realise that I had promotion rights too, so thank you for that, Madam Deputy Speaker.

One of the effects of the shock of the pandemic, along with other geopolitical changes, is that after 50 years of global trade liberalisation, the world is facing a long period of aggressive mercantilism, and we have to deal with that. The Government are to be congratulated on their ambitious agenda, including record increases in research spending, which has not been mentioned today, the employment drive, the freeport programme, the campaign for ambitious free trade agreements and the bold infrastructure plans. On the non-economic front, I also welcome the excellent proposals to guarantee free speech on campuses. However, I have serious concerns about several aspects of the Queen’s Speech.

[Mr Mitchell]

Do those concerns include the issue of the 0.7%, on which my right hon. Friend and I have not always agreed in the past?

[Mr Davis]

My right hon. Friend is quite right: I opposed the increase to 0.7% because I thought that it was too fast and that it would encourage inefficiency, but, once you are at 0.7%, reducing it will lead to the loss of lives, so I absolutely agree with him on that.

The most important of the domestic issues that concerns me is the Police, Crime, Sentencing and Courts Bill. The Bill reverses the reforms that we put in place in 2017 after the scandal of the treatment of Paul Gambaccini, who was on police bail for well over a year before not being charged. Even now, after that reform, far too many suspects are still bailed for years on end. I currently have a case in front of me where an individual has spent five and a half years on bail without an end in sight. This is crippling to an individual’s life—it is like a loose house arrest—and the National Crime Agency shows zero understanding of the cruel damage that is being done to a person’s life by its ridiculously slow investigation. The Bill, as it stands, will make those problems worse by relaxing the current restrictions on police bail. I give notice to the Government that I will aim to amend the Bill.

The Bill also contains a proposal for the mass collection of data under the auspices of preventing and reducing serious violence. Here we have the Government countenancing pre-crime, and to deal with pre-crime, they have to have someone’s medical data, health data and education data—there is no restriction on it. It imposes a duty on an array of authorities, including health providers, to share data with the police. We know from history, including from when people have their phone confiscated, that once the police have this data, getting them to delete it and give it back is the devil’s own job. Indeed, it is near impossible; anybody who has tried it knows that. We are talking here about massively enhancing the powers of the state or an agent of the state to collect as much data on as many individuals as they see fit. I want to see that restricted.

I am concerned about the threat to the right of protest, which this country has enshrined in our national fabric for over 800 years—the right to peaceful demonstration. The Home Secretary promised me from the Dispatch Box that we will be incredibly careful to protect that fundamental right. However, I am afraid that the wording of the Bill, as it stands, simply does not do that. It needs reform and I will endeavour to ensure that it is put right.

Finally, my name, along with that of the hon. Member for Walthamstow (Stella Creasy), is on the amendment to the Queen’s Speech that calls on the Government to obey the law in areas where the courts have ruled that they are acting illegally. There are a number of cases where the Government have not done what they have been told to by the courts three or four years ago. Many of these cases affect the rights of children. Rule of law is not a theoretical constitutional concept. It affects lives and living standards of bereaved adults and deprived children.

We should, as a Conservative party and a Conservative Government, stand up for the rule of law, even when it is inconvenient and when the Treasury finds it unpleasant because it has to pay out a few hundred million pounds. This Conservative Government should limit the power of the state rather than enlarge it, celebrate freedom rather than curtail it, and operate under the law rather than under ministerial fiat. I hope that this Parliament and all the parties will hold the Government to that. Otherwise, we will risk betraying the ideals of the country that we live in.

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[Mr Andrew Mitchell (Sutton Coldfield) (Con)]

I draw the House’s attention to my entry in the Register of Members’ Financial Interests.

It is a pleasure to follow the right hon. Member for Birmingham, Hodge Hill (Liam Byrne). We do not agree on everything and I have spent the past two years working hard for his opponent, Andy Street, who was elected last Thursday, but I thank him for what he said and for what was a decent and fair campaign in the West Midlands that dignified democracy and did all the main candidates considerable credit.

First, I am a fan of the mayoral system and think that Andy Street will be best placed to secure the right economic judgments and the jobs, training and levelling up. As has been said already in this debate, levelling up is not just geographical but generational. This is first young generation since the world war one that does not believe it will be better off than its parents’ generation. That is an important issue. The devolution of power—which is, of course, part of the answer to the constitutional questions about Scotland, Ireland and the United Kingdom—is very important and it works well in the West Midlands. I strongly encourage the Chancellor to give Andy Street every possible support in the work that he is doing.

In particular, in the royal town of Sutton Coldfield we would like levelling-up funds. I hope very much that we will be in the second tranche, because public spending is critical to securing successful development, sometimes in places that are ostensibly quite well off but need that spending if they are to succeed. Areas such as mine have to go through Birmingham City Council and there are inevitably political difficulties and differences of emphasis. I urge the Treasury to consider that.

Secondly, on the 0.7% aid target, I very much hope that the Chancellor will have heard yesterday the words of the former Prime Minister, my right hon. Friend the Member for Maidenhead (Mrs May); the Father of the House, my hon. Friend the Member for Worthing West (Sir Peter Bottomley); and others in the House. The Gracious Speech quite rightly calls for girls’ education, which is probably the most effective way of changing the world, but on girls’ education—the Prime Minister’s particular priority—we have seen a 25% cut, with funding set to fall from £789 million in 2019 to a projected £400 million this year. That is a very substantial cut. Funding for UNICEF, which looks after children and was assessed in the British Government’s multilateral aid review to be the best UN agency, has been cut back by 60%. These are very serious issues.

[Liam Byrne]

I thank the right hon. Gentleman for his kind words. Does he agree that at the G7 and later this year at COP26, Her Majesty’s Government would stand a far better chance of encouraging sign-up to the new International Development Association programme if, ahead of those important events, they were prepared to commit to the 0.7% target?

[Mr Mitchell]

The right hon. Gentleman knows very well my strong support for the 0.7%. The point that I am making is that the damage being done to Britain’s reputation, quite apart from the damage to the poorest people in the world, is very severe indeed. I worry that the Treasury does not fully appreciate these factors.

The Chancellor generously gave way to me earlier and I asked him whether he would consider reinstating the 0.7% once the economy reaches pre-covid levels. He said that the damage that was done might be too great for that. I hope very much that he will think about those words. He also mentioned that we have given £400 billion of taxpayers’ support—quite rightly and highly effectively, thanks to his successful stewardship—to our efforts to combat covid. On the cut that he has made to 0.5%, we are talking of 1% of that £400 billion, but the damage that this is doing to Britain’s reputation, quite apart from the damage it is doing to the poorest people in the world, is very savage indeed.

I therefore urge the Chancellor to announce as soon as he can that we will stand by our promise that we made just a year ago in the general election and by the promise that the British Government made on the floor of the General Assembly at the UN, and that we will no longer seek to balance the books on the backs of the poorest people in the world.

The third point that I wanted to make was mentioned in the Gracious Speech, and it is about social care. I am obviously disappointed that the Government have not yet set out quite how they wish to proceed on this matter, but it seems to me that this is a major and important reform that needs to be agreed by all parties. Like pensions legislation, it has a long tail. However, much of the work has already been done by Sir Andrew Dilnot. I hope that the Government will look carefully at those plans and decide whether they are able perhaps to tweak them, but to implement them.

In my constituency, we have big plans for the Royal Sutton Coldfield Cottage Hospital, but those plans require us to understand what the national social care priorities will be. I hope that this legislation will come forward, possibly with the assistance of my right hon. Friend the Member for South West Surrey (Jeremy Hunt) and his experienced Select Committee, who might have a role in assisting the Government in refining those plans and aspirations.

The final point that I want to make is about assisted dying. I am the co-chair of the all-party parliamentary group on choice at the end of life, and I know that there are very strong feelings in the House on this issue. I greatly respect those who completely disagree with me on the matter, not least since I have completely changed my own mind since I first entered the House many years ago.

Those of us who are supporting Dignity in Dying want a very tight and narrow change made to the law. We believe that this could be the great liberal reform of this Parliament; 84% of our constituents want to see this sort of reform introduced. Significant advances are being made in southern Ireland, Scotland, New Zealand, Spain, Portugal, Austria, Germany and Australia, so I ask that we as parliamentarians consider allowing our constituents who are terminally sick and within six months of dying to be able to exercise their own choices, and not be forced to endure a level of pain and indignity that they do not wish to suffer.

Finance (No. 2) Bill

Andrew Mitchell Excerpts

Committee stage & Committee of the Whole House (Day 2)
Tuesday 20th April 2021 Commons Chamber

[James Murray]

I very much agree. My hon. Friend makes an important point about the Government’s priorities, and about the lack of priority they give to going after the promoters of tax avoidance schemes and those who evade paying tax, in comparison to other actions in Government. We are seeking to put pressure on them today to address that imbalance.

HMRC’s criminal investigation policy states:

“Criminal investigation will be reserved for cases where HMRC needs to send a strong deterrent message”.

However, we know that fraud through the promotion of tax avoidance continues at scale, involving at least an estimated £20 billion in 2018-19, so it is hard to imagine why Ministers would not support a stronger deterrent message being sent by the greater use of criminal prosecutions.

Part of the answer may be the understaffing of HMRC. In a response on 11 January this year to a parliamentary question, the Financial Secretary admitted that the number of full-time equivalent employees at HMRC had fallen since 2010 from 67,553 to 58,467. That is a reduction of more than one in seven. The question of capacity in HMRC and the impact that that may have on its ability to tackle tax abuse must not be ignored. The Tax Justice Network refers to the fact that a member of staff in the compliance business stream at HMRC brings in on average over £900,000 a year on a £30,000 salary. It has pointed out that the Chancellor’s additional investment in HMRC staffing is directed towards tackling fraud related to covid spending, while previous funding increases have supported HMRC’s Brexit capacity. Its view is that the Chancellor must invest further in HMRC’s core compliance capacity.

Furthermore, beyond the questions around tackling the promoters of tax avoidance, the Bill is also silent on other important areas that need to be pursued, such as efforts to set up a register of overseas entities. Legislation is needed to establish a register that would show exactly who owns the foreign companies buying up British property. This would serve as a key part of any clampdown on money laundering.

The then Prime Minister, David Cameron, first announced plans for this in 2015, yet more than five years later, the legislation is nowhere to be seen. I bet he has not been in touch with Ministers for action over that. I would welcome the Minister using his speech at the end of this debate as an opportunity to explain whether the promised deadline of introducing legislation to set up a register of overseas entities by 2021 will be missed. If he is silent on this matter, we will take that as a yes.

I would like to use the opportunity of a discussion on tax avoidance to ask the Treasury ministerial team again to confirm whether the Chancellor backs plans for a global minimum corporate tax rate, as proposed by the US President. When I asked the Minister’s colleague, the Exchequer Secretary, to address this point during the Bill’s Second Reading last Tuesday, she did not respond, which I am sure was an oversight. I would therefore welcome the Financial Secretary addressing this question directly in his closing speech, to avoid any misperception that he and his colleagues are deliberately avoiding the question.

Our criticism of the Government in relation to tax avoidance and evasion centres not so much on what the measures in the Bill would achieve but rather on the ways in which the Bill and the Government’s wider approach fall short. The Government lack a tough and comprehensive approach to prosecuting the promoters of tax avoidance, to going after international money launderers and to pursuing those who seek to evade tax. We know that the impact of the measures in the Bill will be relatively minor and technical. The public deserve to have the Government present clearly and transparently what effect the measures in the Bill will have, and our new clause simply requires that their impact on tax avoidance, tax evasion and the size of the tax gap should be reviewed and laid in public before this House.

Throughout the Minister’s statements and comments, there is a clear pattern that the Government favour minor technical amendments to legislation on this matter, rather than upping their game and truly calling time on the practices that the public clearly want to see ended. Today they have an opportunity, by supporting our new clause, to show that they understand the need to be clear with the public, to recognise the need to strengthen their approach on this matter, and to commit to coming back with the resources and legislation that are needed to truly make a difference.

[Mr Andrew Mitchell (Sutton Coldfield) (Con)]

I want to make a few points, principally on amendment 77. Perhaps I can start by saying that I do not agree with the Opposition spokesman, who has just addressed the House so eloquently, that the Government have been slow to tackle tax abuse and tax fraud. I should, at the outset, draw the House’s attention to my entry in the Register of Members’ Financial Interests. I think the Government have been very good at tackling tax fraud, starting in 2010 when this Conservative Government first came into office. The reforms that were introduced by George Osborne, the Chancellor of the Exchequer, deliberately targeted tax abuse and set up a number of measures to try to ensure that we clamp down on it, as it is common cause on both sides of the House for us to do.

Where I do agree with the Opposition spokesman is in his reference to the Panama and paradise papers. That excellent work by journalists from, I think, The Guardian and the BBC exposed the fact that money laundering, dirty money and abuse in that sector were far more rampant than we realised. That is one of the reasons why the right hon. Member for Barking (Dame Margaret Hodge) and I have made so much of an effort in this House, along with colleagues on both sides of the House, to try to clamp down on money laundering and dirty money and ensure that we have sunlight as the best disinfectant on all of this. That is why we introduced the open public registers of beneficial ownership for the British overseas territories, and why we strove so hard to persuade the Crown dependencies—successfully, now—to introduce those same open registers. That is the way in which we stop kleptocrats, bent politicians, warlords and corrupt businesspeople from stealing from the Exchequer but also, of course, from Africa and Africans. That was the great benefit of the paradise and Panama papers: they showed so clearly the extent of what was going on.

I thought that the Financial Secretary made some very good points about amendment 77. In general, I do think that the Revenue has enough power over the private citizen in the laws of the land as they stand at the moment. However, the point I would make to the Financial Secretary—he has been most receptive in listening to the right hon. Member for Barking and me about this—is that eternal vigilance is required. As we have seen, and as amendment 77 draws attention to, there is an inequality of arms in this matter. Advisers who set up these schemes often have an aura of authority, because they are lawyers, accountants and professional people, which those whom they advise may not be.

I want more to be done to ensure that, where these bad schemes of tax evasion are put together by professional advisers, they do not get off scot-free while the people they put into these devices, or talk into going into them, take the rap. It is not right that they should just lose the fees that they earn, which I think is currently the position: we should toughen the financial penalties. The Minister handles these matters very well, and I know that he wants this to be more than a senior common room debate. I know that he is conscious of the balance between the rights of the individual and making sure that people are not able to evade tax. I know that he does think seriously about that, so I would just urge him to always keep an open mind on this issue.

This is a familiar theme. In this year of Britain’s presidency of the G7, we should remember the work that was done by George Osborne for the last G8, at which he championed the open registers that were introduced in Britain in 2016. It is a proud achievement of this Conservative Government that, at the last G8, they moved the world towards focusing on these illicit flows of money, and this year with the G7, I hope that the Minister will consider it important as well. I completely accept that we are not going to divide the Committee on amendment 77. What the Minister said about the amendment was extremely constructive and I hope he will feel it right for the House to return to this matter on very regular occasions, in pursuit of what unites us all: that people should pay their fair levels of tax.

--- Later in debate ---

[Jesse Norman]

I am grateful to all those who have spoken in the debate. Let me start with my hon. Friend the Member for Thirsk and Malton (Kevin Hollinrake), who, as always, brought a robust common sense, as well as the skills of an accountant, to bear, especially when it comes to holding the Opposition to account for some of their comments.

[Mr Mitchell]

I should defend our hon. Friend the Member for Thirsk and Malton (Kevin Hollinrake). He is not an accountant; he is an estate agent.

[Jesse Norman]

I have been held to account by my right hon. Friend and I am grateful to him for that, because that power—if I have any power—should always be held to account. Let me put the record straight: my hon. Friend the Member for Thirsk and Malton is an estate agent, and yet with that estate agency genius he combines the forensic skills of an accountant in holding to account, indirectly, members of the Government and, directly, the Opposition. I thank him for that.

My hon. Friend the Member for Thirsk and Malton pointed out that these disguised remuneration schemes are highly contrived. It is terribly important to remind ourselves of that. It is all very well to complain about the loan charge, but these are highly contrived schemes. My hon. Friend reminded us—as, indeed, did my right hon. Friend the Member for Sutton Coldfield (Mr Mitchell) —of the general rule that all taxpayers are responsible for their own tax, and that if, by implication, a scheme looks too good to be true, it almost certainly is too good to be true. Those are important messages and no Government should wish to weaken that important principle that people are responsible for their own tax.

Government's Management of the Economy

Andrew Mitchell Excerpts

Tuesday 23rd February 2021 Commons Chamber

[Mr Andrew Mitchell (Sutton Coldfield) (Con)]

I draw the House’s attention to my entry in the Register of Member’s Financial Interests.

The background to today’s debate is that no other Government in the western world have given such trenchant taxpayer support to their citizens. I read, as I am sure my colleagues did, the relaunch speech by the Leader of the Opposition, but it seemed to me that his guiding theme merely followed the defining levelling-up agenda of this Conservative Government.

I have no doubt that many speakers today will look at the last five years of this Government, but I would like to look at the first five years referred to in the motion, from 2010. When the coalition assembled in 2010, one in every three pounds of public expenditure was borrowed, and as a result of that difficult and dangerous financial position, tough decisions were taken about reductions in expenditure. Incidentally, the same fiscal tightening took place in Britain as took place in Obama’s America. As a result of those courageous decisions, six things happened, many of which were down to the skilful stewardship of George Osborne.

First, the UK had the strongest recovery among the G7 countries. More British jobs were created than under any other Government in history. By 2015, we had the fastest income growth among the lowest-paid 20% in the country. We had the most sustained and consistent fall in our deficit among the G7, and we introduced the national living wage. Meanwhile, the NHS performed more operations than ever before and crime fell in every year. The UK was the No. 1 recipient of inward investment in the G20.

Like many of us, but especially me, I am incredibly proud to have served in a Government who, in spite of the economic difficulties, refused to balance the books on the backs of the poorest people in the world and implemented our 0.7% promise on international development. I am proud it was a Conservative Government who finally implemented the promise to the world’s poorest to spend 0.7% of our gross national income on international development. I know that the Government are considering breaking this promise, a manifesto commitment that all of us entered into just over a year ago, but I urge them not to do so. We would be the only G7 country to take this action, while America is increasing its development spending by $15 billion. Although it is £4 billion, which is a great deal of money, it is just 1% of what we have borrowed in the last year. It will result in hundreds of thousands of avoidable deaths, mainly among children, and it will destroy a key and respected aspect of post-Brexit global Britain. I urge the Government, on this point, to think again.

Financial Services Bill

Andrew Mitchell Excerpts

Report stage & 3rd reading & 3rd reading: House of Commons & Report stage: House of Commons
Wednesday 13th January 2021 Commons Chamber

[Yvonne Fovargue (Makerfield) (Lab) [V]]

It is a pleasure to follow the hon. Member for Blackpool North and Cleveleys (Paul Maynard). I, too, want to focus on new clause 7, but I also want to mention breathing space, which is addressed in new clauses 22 and 23, and the statutory debt repayment scheme, which is dealt with in clause 32. We all know that BNPL has exploded in the past year. More and more retail outlets, and even online gambling companies, are using it, and it is being sold to companies on the basis that, on average, customers spend 40% more. It is also being sold to customers as an easy way to spread the load, with the thought, “There are no credit checks so it is not debt.” But of course it is, because people are using someone else’s money to pay and it then has to be repaid. I looked into the business model for one company and found that 25% of its income is predicated on late fees and people being unable to pay on time. Surely that has to ring alarm bells, with the echoes of the high-cost lenders and their practices. The regulation is needed sooner rather than later and I look forward to a swift response to the Woolard review.

Breathing space is welcome, and I have long called for it; 60 days will often be enough, but there will be a need for flexibility in exceptional circumstances. The scheme was designed prior to the pandemic, where people are furloughed, have lost their job or have a period of illness, and 60 days is not long enough to give people time to recover from a temporary financial difficulty caused by the pandemic and set up a long-term solution. People affected by the pandemic simply need a bit more time to straighten themselves out. I also think that the midway review needs to be looked at again. It simply wastes time and resources, which are scarce in the debt field.

Breathing space alone is not enough, however, given the impact of coronavirus on household finances. Bailiffs’ visits should be suspended, as they were during the first national lockdown, and other enforcement action should be halted when a debt adviser alerts the creditor that a client has financial or other issues due to coronavirus. We should also be suspending the use of non-priority benefit deductions from universal credit and bringing forward plans to extend the repayments over a longer period.

Moving on to the statutory debt repayment plan, I am pleased that the intention is that people seeking debt advice should not be charged for any aspect of the plan. It has always seemed counterintuitive that people in debt should be charged to get out of the very same debt. However, there are areas that need to be tightened—for example, where creditors are objecting to the level of payments. That needs to be seen within the existing debt advice methodology and budget standards. We cannot have creditors objecting just because they do not like the level or they think that someone else has more. There is a common standard, and creditors need to accept that.

In general, the Bill is a welcome step forward in assisting people in debt, but the landscape of debt solutions is complicated and difficult to navigate. I believe that a full review of all debt solutions needs to be undertaken to clarify and simplify, and to ensure that people in debt are always able to access the solution that best suits their needs.

[Mr Andrew Mitchell (Sutton Coldfield) (Con)]

I draw the House’s attention to my entry in the Register of Members’ Financial Interests. I rise to say just a few words about new clause 4 and amendment 7, both of which I support. New clause 4, on the facilitation of economic crime, has been ably tabled by the right hon. Member for Barking (Dame Margaret Hodge), who, together with me and many others across the House, has sought to drive forward this agenda. The agenda is driven forward by the Bill, which has been so ably handled by my hon. Friend the Minister. It goes with the grain of Government policy and builds on the changes already achieved. I do not think that the House should be divided on it today, but we should send a signal to the Government about the importance of pursuing this agenda.

We have, as I said, achieved considerable change. The right hon. Member for Barking and I managed to persuade the Government to introduce open registers of beneficial ownership, both for the overseas territories and now for the Crown dependencies. The Foreign Office was not in favour of that at the time, but it now strongly supports it, so progress can be made. We are building on the excellent G8, where these matters were first championed by David Cameron as Prime Minister, and also on the recent US legislation. The evidence of the Paradise and Panama papers showed without any doubt the sophistication of financial advisers and the fact that there is an inequality of arms in so much of this. They are ahead of the financial enforcement authorities, and we need to be aware of that. The Bill helps, but new clause 4 would drive the matter further forward in clamping down on the facilitation of economic crime. I hope that the Minister will send a clear message on that when he sums up. I would also say to him that the reforms to Companies House led the world, but the trouble is that Companies House has become a sort of library, rather than an investigator. What it needs is more resources, and I very much hope that he will make the point across Government that Companies House with more resources would be an extremely valuable tool in the fight against economic crime.

Amendment 7—the genocide clause, as it were—has been tabled so ably by my right hon. Friend the Member for Chingford and Woodford Green (Sir Iain Duncan Smith). He makes the point that money cannot somehow be divorced from its provenance. We have had much focus on money laundering, on dirty money and on money stolen by corrupt dictators from Africa, by business people and by warlords. Shining the light of transparency on this is incredibly important, and this is a good amendment because it underlines our abhorrence of genocide. I have worked with much pleasure with the hon. Member for Bethnal Green and Bow (Rushanara Ali) on what the UN Committee that visited Burma and Bangladesh referred to as the genocidal activities over the Rohingya, and with my right hon. Friend the Member for Chingford and Woodford Green on the human rights abuses in China. The House is right to take a very strong line on the issue of genocide. If global Britain means anything, it is driven by values. These values matter, and when regimes such as the Saudis, for example, butcher journalists in foreign consulates or imprison women campaigning for human rights, we should speak out.

Spending Review 2020 and OBR Forecast

Andrew Mitchell Excerpts

Wednesday 25th November 2020 Commons Chamber

[Rishi Sunak]

The Government firmly believe in making sure that the recovery is green. I urge the hon. Lady to have a look at the national infrastructure strategy that we have published today, entitled, “Fairer, faster, greener”, which outlines the funding for all the green measures contained in the Prime Minister’s 10-point plan. I think it represents a comprehensive and ambitious path to deliver our net zero commitments.

[Mr Andrew Mitchell (Sutton Coldfield) (Con)]

I thank my right hon. Friend for his courtesy over the weekend and I assure him of my very strong support for virtually all of his package today. As a result of the pandemic here in the UK, 50,000 people have died and we are rightly moving heaven and earth to prevent more deaths here at home. Is he aware that his proposed breaking of the 0.7% promise and the 30% further reduction in cash will be the cause of 100,000 preventable deaths, mainly among children? This is a choice that I for one am not prepared to make. None of us in this House will be able to look our children in the eye and claim that we did not know what we were voting for.