Finances of the House of Commons

Debate between Angela Eagle and Thomas Docherty

Thursday 21st November 2013 Commons Chamber

[Ms Eagle]

I think we need to look at how we can run this place, with two legislatures that are not the same but coexist in the same building, in a far more effective and efficient way. That does not mean making them completely co-operative in the way the hon. Gentleman suggests, but it does mean that we should see what efficiencies and savings we can get from running joint services. There is absolutely no reason why we cannot make large administrative savings from doing so.

[Thomas Docherty]

I fully endorse my hon. Friend’s proposal. Indeed, the first report of the Administration Committee called for a single catering service, for example. It is ludicrous that we have two separate catering services. This is an excellent idea.

[Ms Eagle]

I thank my hon. Friend for his support. Merely dismissing this without thinking much more carefully about the potential for savings is perhaps being rather more conservative than I thought the hon. Member for Harwich and North Essex (Mr Jenkin) was being when he declared himself the self-appointed shop steward of Select Committee Chairs. I was about to call him “Red Bernard”, but I decided that that might be considered unparliamentary language.

We should explore in detail the potential for releasing savings in these ways. Perhaps the hon. Gentleman will agree with me more when I say that if we can release them, we should use some of them to give much more support and resources to our Select Committees, to enable them to hold the Executive to account even more effectively than they do now. I do not know whether he has talked himself and his Committee out of having some of those savings released to them. In his speech, he made a strong plea for the more effective resourcing of Select Committees.

Finance Bill

Debate between Angela Eagle and Thomas Docherty

Thursday 15th July 2010 Commons Chamber

[Thomas Docherty]

My hon. Friend is probably aware of many people’s anger at the size of the pension pots of bankers such as Sir Fred Goodwin. Does she agree that when many people are struggling as a result of the bankers’ decisions, it is outrageous that the Government wish to reward those very bankers by giving them such big pension breaks?

[Ms Eagle]

I certainly understand that anger, and I suspect that there will be even more anger if the Government do not address the unfair way in which the distribution of the pension tax relief has developed, especially since the simplification from A-day in 2006. We tried to address the problem by targeting the people at the very top who had benefited the most from the relief in particular.

We received representations from stakeholders who called for a simpler system, and it would be wrong of me to try to claim that the system for which we legislated was simple—it was clearly complex. However, when dealing with people on very high earnings who use complex financial arrangements, we often find that that complexity must be matched to ensure that a fair amount of tax is taken from them. In tax and benefit law, as the Economic Secretary will know—she probably struggles with this every day—there is always a trade-off between simplification and fairness, as well as yield. We took the view that despite the complexities of the system that we were introducing, it was right to target very high earners in particular. I state the distributional analysis again: the top 300,000 people receive 25% of £18.9 billion. No right-thinking person in this country with any kind of understanding of what the term “fairness” means would want us to tolerate that kind of distribution.

Simplification is always a popular cry, but there are trade-offs, and it causes different problems if we create a simpler system. We did consider other options, but the trade-offs are inescapable. We want to explore in debate today how the Government are working their way through the trade-offs, so that we can try to assess whether the solution that the Government have hinted at, but have not put before us, is fair, or whether its outcome is less fair than the outcome of the system that we decided on.