Finance (No. 2) Bill
Debate between Anna Soubry and Peter DowdWednesday 21st February 2018
(6 years, 9 months ago)
Commons ChamberRead Full debate Finance Act 2018 View all Finance Act 2018 Debates Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: Consideration of Bill Amendments as at 21 February 2018 - (21 Feb 2018)
Peter Dowd
That is not surprising: the banks returned to profitability because the taxpayer bankrolled them. That was how they got back into profitability, and they must pay their fair share of taxes as a result. The constituents of every Member of Parliament paid towards that, and when the profits came back in, the taxes went back up. We have helped the banks out, and they have to help our public services out.
The Government claimed that their introduction of the 8% corporation tax surcharge would offset the cuts to the bank levy. If we look at the autumn’s Budget Red Book and the forecasts from the Office for Budget Responsibility, however, we clearly see that the surcharge will not match the fall in the bank levy. According to forecasts, the surcharge is set to increase by £300 million a year, while the receipts that the Exchequer receives from the levy will fall by £1.7 billion a year. That leaves a £1.4 billion gap. That is a fact that is printed in the Government’s Red Book and, as John Adams opined, “facts are stubborn things”.
In 2018, we are still feeling the economic consequences of the actions of the banks. Every day, the Government tell us that there is no money for productive investment and that austerity must continue, yet they have conspired to undermine and limit any remuneration from the banks that caused this sorry state of affairs in the first place. Once again, the Opposition’s ability to amend this Bill has been hamstrung and blocked by the Government’s continued use of arcane parliamentary procedure.
Anna Soubry (Broxtowe) (Con)
The person who said that there was no money left was actually the occupant of the Treasury who left a note for the incoming Conservative-Liberal coalition Government in 2010. The reality is that of course there is money. We raise taxes and we spend them exceptionally wisely as a Conservative Government, particularly on infrastructure which, as the hon. Gentleman must surely agree, is now at record levels. It is just that we are still having to clear up the mess that was left by the last Labour Government.
Peter Dowd
The right hon. Lady can believe what she wants, but who will pay any attention to the Chief Secretary to the Treasury who took over from a Labour Chief Secretary to the Treasury, but was out of that job within two weeks because of issues around his parliamentary expenses? Does she expect us to pay any attention to that whatever? [Interruption.] That was what happened. David Laws—
Peter Dowd
The right hon. Lady can come back later on. This is not a dialogue, as you would no doubt tell me, Madam Deputy Speaker.
We have a timid, feckless and self-obsessed Government who are frightened of their own shadow. They continue to give more money back to the banks, notwithstanding the fact that they keep telling us that the resources coming into the Government are insufficient to support our public services.
We are seeking three things by moving new clause 3. First, we want to require the Government to carry out a review of the bank levy, including of its effectiveness in relation to its stated aims. Secondly, we want to establish the extent of the effect of the 2015 cuts on revenues from the levy. Thirdly, we wish to calculate how much would have been raised if the Government had stuck with Labour’s bankers’ bonus tax. Such a report would put under the microscope for all to see the Government’s malpractice—that is what it amounts to—in cutting frontline services while offering tax giveaways to banks that can more than afford them. It would require the Minister to acknowledge that far more would have been raised under Labour’s bankroll tax and, just as importantly, that the Government’s current bank levy has done little to influence and mitigate the risky banking practices that remain in use in our financial services industry.
Duties of Customs
Debate between Anna Soubry and Peter DowdMonday 20th November 2017
(7 years ago)
Commons ChamberRead Full debate Taxation (Cross-border Trade) Act 2018 View all Taxation (Cross-border Trade) Act 2018 Debates Read Hansard Text Read Debate Ministerial Extracts
Peter Dowd
The right hon. Gentleman misses the point. This is part of the whole pattern and process by which this Government accrue and accrue powers. Government Members do not seem to grasp that concept, but the fact is that the Government continue to pull powers to themselves and do not devolve them to any of the other nations.
Anna Soubry
I think the hon. Gentleman is really struggling on this. It makes eminent sense that the Government should have the powers to deal with all eventualities. Perhaps he could help this place by explaining the Labour party’s current policy on the customs union. Is the Labour party in favour of us remaining in the customs union de facto as we go into transition, or is it against that? Is it in favour of our staying in the customs union by way of a final deal, which I think is an eminently good idea?
Peter Dowd
I will tell the right hon. Lady what we are in favour of: parliamentary scrutiny. It was John Bright who reportedly coined the phrase “the Mother of Parliaments”, which is completely alien to Conservative Members and, obviously, to the right hon. Lady. I suspect that he, along with many other Radical and Conservative parliamentarians, would be turning in his grave at the idea that a Government living on borrowed time have the arrogance, hubris and others would say bluster to treat Parliament in the fashion this Government are intent on doing.
Conservative Members have to ask themselves this question: did their constituents send them to this House to acquiesce is the systematic stripping away of parliamentary scrutiny, which is not in the national interest, or did they send them here to hold the Government to account, regardless of their party allegiance? The Minister should take seriously the concerns I have raised, as many others inside and outside the House have, about the fast and loose approach the Government are taking to parliamentary scrutiny.
NHS Pay
Debate between Anna Soubry and Peter Dowd(7 years, 2 months ago)
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Peter Dowd
No, I will not.
I know that NHS workers take that view because I have spoken to them.
Anna Soubry
On a point of order, Mr Deputy Speaker. Is it in order for an hon. Member to point randomly across the Chamber and insult another Member, without even having the courtesy to name them and thereby give them the right of reply?
Peter Dowd
I say again that I know for a fact that NHS workers take the view that this debate is not just about them but about the public sector generally.In proxy terms, this debate is about all public sector workers. Many of the arguments about the health sector apply to other parts of the public sector as well.
Peter Dowd
No, I will not.
This debate has come at a stark time for our public sector workers. We have had the hardest summer that many of us can remember—our emergency workers and other public sector workers have faced the horror of terror attacks and the outrage of Grenfell.
Peter Dowd
No, I will not.
As the country suffered, those workers stepped forward. Will we step forward for them? Labour says, yes, it will. We know what those workers provide for our communities and for our country. What do we provide for them—or, rather, what do the Tories provide for them? First, they provide huge amounts of patronising claptrap—we have seen loads of that today—backslapping and warm words. Those workers do not need our tributes; they need our action. The Tories tell them how much they are valued and what a great job they do. The Prime Minister tells us virtually on a daily basis how wonderful our public services are—it usually happens after a national emergency in which people are murdered, maimed or, in the case of Grenfell, asphyxiated or burned to death. Yes, in the week of the Grenfell public inquiry, it is as stark as that, so let us not shilly-shally around this issue.
Those public sector workers are the people we turn to when no one else is available. They are the people who save lives, help to bring life into the world and are there when we leave the world. While they gave their all for us over these hard months, they knew that the Conservative Government remained committed to capping their pay and to continuing with the real-terms pay cut they have faced since 2010. Ever since the election, they have faced mixed messages about their pay from the Conservatives.
Finance Bill
Debate between Anna Soubry and Peter Dowd(7 years, 2 months ago)
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Anna Soubry
I would make exactly the same point as my hon. Friend the Member for Shipley (Philip Davies). How many Labour Members, including the hon. Member for Bolsover (Mr Skinner), voted in favour of last night’s Bill?
Peter Dowd
Conservative Members acquiesced in their droves, and it is a shame—it is absolutely shocking—that they did so.
Draft Statutory Auditors and Third Country Auditors Regulations 2016
Debate between Anna Soubry and Peter Dowd
Anna Soubry
My officials helpfully warned me about this issue, so I am very grateful to them. Mazars has written to several MPs about a member state option on a practice called joint audit. It is relevant to France, but not to the UK. The CMA considered whether joint audit would improve competition in the audit market and, as I described, chose not to incentivise it. We have taken the same approach and have not taken up that option. I know that Mazars has concerns because it has its origins in France and feels that joint audit has helped it secure its larger share of the market there, but that is about all I can say at this stage. We are aware of those concerns but, on balance, we think that what we have done is right, which is why I am so keen that we should all agree that these regulations are the right way forward. Nevertheless, we will, as always, keep a firm eye on all these matters. If there is ever a need to make changes, I hope we will do so.
Peter Dowd (Bootle) (Lab)
On that subject, notwithstanding the fact that it might have some self-interest, Mazars suggested that smaller auditors might be at a competitive disadvantage, but also that challenger businesses would be less likely, thereby reducing consumer choice, and that the regulations would be less likely to encourage competition in the market. Will the Minister comment on that?
Anna Soubry
As I said, we are aware of Mazars’s concerns and have looked at them. The important thing about the directive and the fact that the regulations will, hopefully, now come into force is that there really has been extensive consultation, which is highly commendable. We have listened to all parties. All the stakeholders that are involved in this part of the financial sector have been consulted and had their say. On that basis we are content with the regulations as they are. Nevertheless, we will keep a firm eye on them. We will always keep things under consideration.
The regulations contain changes that are likely to have a deregulatory effect, including some to make cross- border provision of audit services more straightforward. That is encouraging, and it is a very good example of how the EU is increasingly moving in the direction of wanting to deregulate and becoming much more aware that it must not be a burden on our businesses. As well as having the potential to increase competition in the UK, the requirement must be reflected in similar provisions in other member states and should open up opportunities to UK firms.
The Government believe that a non-statutory approach to the implementation of EU legislation should be adopted wherever possible. The implementation of ethical and technical requirements in the directive for auditors will be covered by revised FRC standards. The approach reflects that taken to implementing the 2006 audit directive, as the requirements in that directive were implemented in the UK as requirements on the content of FRC standards.
Many requirements of the EU regulation will apply as part of the standards, including a blacklist of services that auditors will not be able to provide alongside the audit to avoid overfamiliarity between the management and auditors of PIEs. It also includes additional requirements on the content of the audit report of PIEs that supplement further harmonisation in the directive. That is not expected significantly to increase the length of audit reports but is likely to increase their value to users.
The Financial Conduct Authority has amended its rules to reflect changes to the framework in the directive on audit committees. The directive requires rules on audit committees to be applied to unlisted banks, building societies and unlisted insurers for the first time. The EU regulation and FRC standards then put in place further measures for corporate governance of PIEs in the form of an additional report by the auditor to the audit committee.
Finally, the regulations will strengthen standards for the audit of PIEs and make audit reporting more informative. They should also improve confidence in the independence of auditors and avoid excessive concentration in the audit market. They open up opportunities for smaller audit firms. On that basis, I commend the regulations to the Committee.