It is a pleasure to follow the hon. Member for Scunthorpe (Nic Dakin), who is a near neighbour of mine. He and I represent seats in the north of England that are not full of city slickers and billionaires avoiding taxes with expensive lawyers. I pay tribute to the APPG for the work it has done on this, representing constituents up and down the country who have suffered dreadfully under this arrangement.
US Supreme Court Judge Marshall once said,
“the power to tax involves the power to destroy”.
This, I am afraid, is a good example of that—a tax policy that is destroying families, homes, mental health and even lives.
My right hon. Friend is making a pivotal point. This is a deeply un-Conservative action by a Conservative Government. Surely the mood of the House is clear: nobody wants to see this loan charge implemented. It is devastating people’s lives, and the Government need to act immediately.
My hon. Friend makes a powerful point. I am not going to make a political point out of this, but I will make a policy point. When I was the Public Accounts Committee Chairman 20 years ago, it would not be true to say that the Inland Revenue behaved like a charity. It was always pretty tough, but in the last 20 years it seems to me that the exercise of its judgment has become more and more oriented to cash and less to justice. That is what we are addressing today. Part of the reason for that is that successive Chancellors have blurred the distinction between tax avoidance and tax evasion, one of which is illegal and one of which is a matter of judgment. That has put a huge burden on HMRC’s judgment, so that we see it effectively making the law through its judgment and in ways that are deleterious to our constituents.
(7 years, 11 months ago)
Commons ChamberWithdrawing from the EU means decisions on how we spend taxpayers’ money will be made in the United Kingdom. We will strike a deal in the best interests of United Kingdom taxpayers. It is the job of my Department to bring back control over issues such as money, law and borders. As we do so, it will be up to this House and this Government to make the decisions.
I do not expect the Secretary of State to reveal his negotiating position today, but will he accept that on 23 June the British people voted to restore control over the money that we have paid to the European Union? They want that money spent in the United Kingdom, not subsidising Brussels.
I understand entirely where my hon. Friend is coming from. Indeed, as he well knows, I have a great deal of sympathy with that viewpoint. Of course we intend to respect the decision of the British people and what underpins it. As he rightly says, it would be irresponsible to set out red lines or to make unilateral decisions at this stage, but it must be made clear that we want decisions over how taxpayers’ money is spent to be made in this House.