Finance (No. 2) Bill

Debate between Ben Lake and Richard Fuller

Committee stage & Committee of the Whole House (Day 1)
Monday 19th April 2021 Commons Chamber

[Ben Lake (Ceredigion) (PC)]

It is a pleasure to speak in this debate, Sir Charles. I rise to speak in support of amendment 53, which I hope will encourage the Government to bring some rigour and meaning to their rhetoric of levelling up and the use of taxpayers’ money.

In a Budget that confirmed £17 billion of spending cuts, relative to March 2020 plans, the Chancellor’s decision to announce the super deduction, equivalent to forgoing approximately 20% of the UK’s corporation tax revenues, was certainly a bold one, particularly as the Financial Secretary noted in November 2020 that the existing annual investment allowance already covers 99% of all UK businesses. The House has heard this evening that the super deduction is a major tax break for the top 1% of UK businesses. We have also heard many concerns that it is a blunt tool in need of significant refinement if its perceived benefits are to be targeted to those in greatest need of support. I also point to concerns that the super deduction will disproportionately benefit London and the south-east of England and that it flies in the face of the Government’s commitment to level up the UK economy.

I draw the House’s attention to a finding from the Centre for Progressive Policy, which has calculated that, although the super deduction could amount to a tax break worth up to £513 for London residents, it would be worth only half as much in Wales, whose sum benefit is the second lowest of the UK nations and regions, with only Northern Ireland benefiting less on this measure.

I am afraid that I disagree with other hon. Members who have suggested that the super deduction might, on the contrary, actually benefit and address regional inequality. My fear is the opposite—that the super deduction will, at best, lock in existing regional inequalities and, at worst, exacerbate rather than address the UK’s geographical economic imbalance. That is why Plaid Cymru wishes to amend the Bill to require that the Chancellor considers the impact and geographical extent of the super deduction across all the UK’s nation and regions and would support calls made by other hon. Members this evening that measures should be introduced to establish a deeper evidence base for these changes. Similarly, given the urgent need for climate action and the retooling of the economy for a net zero future, this amendment also requires the UK Government to consider the super deduction’s impact on efforts to mitigate climate change.

I hope that the Government will incorporate guarantees such as these into the Bill to ensure that we truly do rebuild back better from the pandemic, rather than resuscitate the UK’s deeply flawed pre-pandemic economy. Failure to do so would make it clear that their rhetoric of support for all nations, for the levelling-up agenda and for climate action are no more than fine words and lofty intentions.

[Richard Fuller]

It is right, as our hard-working business leaders emerge from the most torrid 12 months, that the Government set a clear course for their understanding of how those businesses will be taxed in future. I would have hoped that it would have been heartening for the people who have been running businesses through these most difficult times to listen in to this debate to hear what Members of Parliament have to say on their behalf. However, personally speaking, I think that most people who run businesses will be rather saddened by what they have heard—largely, a perspective that it is wrong for people to run businesses that are profitable, that there is sin in becoming rich by creating a business that creates products that people want, rather than virtue, and a complete lack of understanding that businesses that make profits are a sign of success, rather than a sign of failure.

Personally, I am rather in favour of us increasing taxes. When this or any Government seek to increase tax on corporations, I wonder whether they realise that, essentially, they are putting a tax on success—that every pound that we take away from a business, from its profits, is a pound taken away from things that the business owner may do him or herself. They might be radical things, such as investing in and expanding the number of people who work for the businesses, investing in machinery that will make their business more competitive in terms of exports, or lowering their debt so that they are on a more substantial and more stable footing for the long term. Every time a state takes away money from enterprise it is putting at risk the resources those companies have to do those things, and the future success of this country. Therefore the Government were right to consider carefully how to balance a change in corporation taxes, and given what has happened subsequently to the Budget, the Chancellor deserves a bit of a pat on the back for understanding what would be going on in the global realm of corporation tax, as well as the crucial importance of providing some short-term incentive for businesses to invest as we emerge from the recession.

Environment Bill

Debate between Ben Lake and Richard Fuller

Report stage & Report stage: House of Commons
Tuesday 26th January 2021 Commons Chamber

[Ben Lake (Ceredigion) (PC)]

Like other Members, I am disappointed that the Government have failed to make significant progress with this Bill, especially given the urgent need to act to address not only the causes of climate change but biodiversity loss. In such an important year for climate change mitigation and adaptation, I hope that the Government will make a meaningful effort to get the Bill on to the statute book as soon as possible in the next Session.

It is a pleasure to speak to several amendments, including new clause 9, which draws attention to our international commitments and the importance of action to protect our natural environment both here at home and abroad. In particular, I hope that the new clause will draw further attention to the plight of our forests—the lungs of our world and vital habitats for species great and small—in addition to the need for measures to discourage trade in products of deforestation abroad.

I hope that new clause 9 will also draw attention to an equally pertinent issue: the offshoring of our emissions and associated resource consumption. WWF believes that as much as 46% of the UK’s carbon footprint is not currently accounted for by national reporting or included in the UK’s net zero target. This simply must be addressed if we are serious about our role in tackling climate change.

The Bill also focuses minds on the constraints imposed by the United Kingdom Internal Market Act 2020 on action to protect our natural world across the four nations of the UK. This is reflected in amendment 40 and new clause 1, both of which Plaid Cymru will be supporting.

Wales is rightfully proud of its status as a world leader in recycling and a nation where sustainable development is a constitutional duty, yet one of the many reasons why the Senedd withheld consent from the United Kingdom Internal Market Act 2020 and why the Welsh Government are now taking legal action against the UK Government is the issue of plastic pollution, as raised by the Senedd Legislation, Justice and Constitution Committee. Wales would be legally prohibited from taking action to restrict the use of single-use plastic under the Act’s non-discrimination clauses. These clauses not only make the Bill’s lack of ambition even more egregious, but draw attention to how the Government are hindering environmental action by working against, rather than with, the devolved nations and their record of action in this field.

We have a duty to do all we can to protect our natural world for present and future generations. We cannot afford to ignore this most profound duty, so I hope the Government will actively listen and reflect on the constructive debate we have had here today.

[Richard Fuller (North East Bedfordshire) (Con) [V]]

Listening to the contributions from colleagues on both sides of the House on this Bill today has been a real pleasure; it is clear that there is widespread support for its ambitions and I share that. It has also been a pleasure to listen to my constituents over the past 12 months —to the schoolchildren, the farmers, the businesses and most of all to Laurinda and The Time is Now group—because it is clear that out in the country the ambitions that the Government have set in this Bill are equally shared and, as many have said, we are eager to see this Bill get on the statute book.

I want to focus on issues of biodiversity and housing and draw the Minister’s attention to the new clauses in the name of my right hon. Friend the Member for Chipping Barnet (Theresa Villiers). In North East Bedfordshire we look to have one of the fastest rates of growth in housing development, and it is crucially important that whatever the level of housing—and of course those numbers need to come down—that housing development takes into account the maintenance, encouragement and resilience of the biodiversity in our local communities. I urge the Minister to listen to representations from the CPRE and also from the Royal Society for the Protection of Birds, based in my constituency, about the importance of biodiversity being incorporated in legislation when it comes to the expansion of housing developments and new developments across the country.

Finally, on the Minister and her team, it is clear that these ambitions, coming from all directions, at some point have to be corralled into a piece of legislation for the whole, and there are lots of tensions between what people want to achieve, but, as she and her colleagues will know, in addition to setting targets we must make sure that we maintain support and buy-in from the various constituents who are affected by those targets. I wish her all the best in bringing forward this Bill and give it my strong support today.