Finance Bill
Bob Stewart Excerpts(10 years, 10 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
The Exchequer Secretary to the Treasury (Mr David Gauke)
We have heard a couple of rather lengthy speeches about a topic that is fairly familiar to those of us who have dealt with Finance Bills in the past. We discussed the reduction in the top rate of income tax at some length during the early, middle and late stages of last year’s Bill, and we have discussed it on a number of occasions during our earlier debates on this Bill. It is striking, however, that the number of Labour Back Benchers present during much of today’s debate so far has been three or perhaps four. Although we have heard some passionate and lengthy speeches, I am not sure that I need to make a lengthy speech in response, but a few basic points are worth making.
The Government agree that the wealthiest should make the biggest contribution to deficit reduction, and it will be clear to anyone who looks at our record across the board that we have stuck to that principle. In the 2010 Budget, the higher rate of capital gains tax was increased. In the 2011 Budget, we tackled a major area of tax avoidance, namely disguised remuneration. The Labour party opposed that measure in Committee, but we tackled the problem none the less, and our action has resulted in considerable extra revenue, particularly from high earners.
The 2012 Budget, which contained the measure that has provided the subject matter of most of today’s debate—the cut in the 50p rate of income tax—also introduced a new rate of stamp duty for high-value homes, measures to clamp down on stamp duty land tax avoidance, and a cap on reliefs used in the tax system, which raised an amount considerably larger than the cost of the cut in the 50p rate. The 2012 autumn statement provided for action to reduce the cost to the Exchequer of pensions tax relief, and the 2013 Budget contained further measures to tackle offshore tax evasion by, in particular, high earners.
We clearly have a strong record in this respect. We have gained additional revenue not only from capital gains tax and stamp duty, but—as is shown by the distributional analysis—from the income tax paid by the top 1% of earners. That was mentioned by a number of my hon. Friends, including my hon. Friend the Member for Gainsborough (Sir Edward Leigh), who pointed out that we are receiving more from the top 1% than the Labour party ever managed to.
It is interesting to note that the proportion of income tax contributed by the top 1% exceeded 25% in only one year during Labour’s time in office, namely 2009-10, which was a slightly strange year because a large amount of income was brought forward so that the tax could be paid at a rate of 40% rather than 50%. In that year, 26.5% of income tax was paid by the top 1%, but in the remaining years the proportion was 25% or lower. We estimate that in 2013-14, with the new lower rate of 45%, nearly 30%—to be precise, 29.8%—of income tax receipts will come from the top 1%. The problem with the 50p rate was that it was not very good at doing what a tax is supposed to do—raising revenue. That is the Labour party’s essential difficulty in advocating a 50p rate of income tax.
Bob Stewart (Beckenham) (Con)
I do not understand all the differentials, but is the Treasury model that we would get more tax income by reducing the rate than by leaving it at 50%?
Mr Gauke
My hon. Friend brings me to the point that I wanted to move on to: the report that the Chancellor of the Exchequer commissioned in Budget 2011 to evaluate the Exchequer impact of the additional rate of income tax. The report was published alongside Budget 2012. It concluded that the underlying yield from the increase from 40% to 50% was much lower than originally forecast, owing to large behavioural effects—it was possibly only £1 billion and could in fact be negative. The 50% rate also risked damaging growth and the UK economy if it had remained permanent.
Bob Stewart
On the 10% tax rate, I understand graduated taxation in principle, but a lot of people who pay the higher rate of tax are not very rich. Paragraph (3) of the new clause says:
“The full benefit of the 10 per cent rate shall not be available to taxpayers paying the higher or additional rates of tax.”
That seems to be pretty unfair on some people.
Chris Leslie
I am grateful for the hon. Gentleman’s thought on this issue, but I disagree. I do understand that more and more people are being brought into the 40p rate. That is another stealthy move by the Chancellor as he broadens out the 40p band. In the interests of fairness, our concern has to be with basic rate taxpayers on the 20p rate. There are 25 million basic rate taxpayers, and if revenue is to be generated from a mansion tax, then most of our efforts should be focused on that group. As my hon. Friend the Member for Clwyd South (Susan Elan Jones) said, that group in society feel under the most pressure and are finding it hardest to get by and to make ends meet, and they would therefore benefit most from this tax cut. It is an important point, and I am glad that the hon. Gentleman raised it.
Financial Transaction Tax and Economic and Monetary Union
Bob Stewart Excerpts(10 years, 10 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Greg Clark
My hon. Friend is right. This runs contrary to the whole direction of the reform that we have been promoting and think it essential for the EU to promote, namely movement towards a single market in which operating across borders becomes progressively easier and more transparent. I do not think it sensible to do what the hon. Member for Nottingham East would prefer to do, which is make a global financial transaction tax a greater priority than what we are achieving in terms of tax policy, at a time when we are making great progress.
Nor would it be right to leave out of the motion the reference to the UK’s legal challenge to the current proposed FTT, which it is widely acknowledged would hit British pensioners—we know the Opposition have them in their sights at the moment—and which is the whole basis of this Committee’s scrutiny of the proposal.
Bob Stewart (Beckenham) (Con)
If an FTT were imposed on us, where would the money be sent? Would it be sent to the EU, a country or some quango? Where would the money go?
Greg Clark
It would go to the country which was liable for the transaction tax that fell due there, but it would not go to this country, despite the fact that we would incur the costs of enforcing it and collecting the money. There would be no benefit whatever to the UK taxpayer. It would be unfortunate if at a time when we should be enhancing Her Majesty’s Revenue and Customs’ ability to collect taxes, we were, in effect, requiring extra resources to be expended on something that was of no benefit whatever to UK taxpayers.
amendment of the law
Bob Stewart Excerpts(11 years, 1 month ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Mr Pickles
As the hon. Lady knows, under this Government and the previous Government a number of schemes have enabled tenants in social housing to swap between local authorities. Those schemes will continue to operate.
We are offering a simple and proportionate response to housing needs. As my second favourite member of the Labour party, Lord Mandelson, remarked last week:
“I can’t quite remember which member of the government it was who claimed to have abolished boom and bust. Well, we abolished boom”.
Last week, Labour was again playing the politics of envy and division, attacking the fact that we are helping hard-working families in middle England, in both the north and the south. Let me be clear for Labour’s benefit. We are not about to introduce 110% or even 100% mortgages for those who cannot afford to pay, but 95% mortgages for people who, but for the financial crisis, could have put enough money aside.
The checks are in place. Applicants will need to prove they can repay the loan before they pick up the front door key. As I said to the hon. Member for Coventry North West (Mr Robinson), this is not a scheme for second home owners, but the rules need to be carefully worded so we do not slam the door on parents who want to do a bit for their kids or prevent people from rebuilding their lives after family breakdown. Unlike Labour, this Government have not given up on growing families who are in properties too small for their needs, buyers looking to make that first step, or tenants who believe they can aim higher. We will continue to work closely with the industry to do everything in our power to make sure home hopefuls realise their dreams.
Bob Stewart (Beckenham) (Con)
Will my right hon. Friend educate me, as I am probably mistaken, but will it be possible for a first-time buyer to buy a house that is not a new build?
Mr Pickles
Two schemes will be available. The first is the homebuy scheme, which will start from 1 April and is for new construction. From January next year, it will also be possible for buyers to purchase properties other than new builds.
The Government are giving the housing market a kick-start and are maintaining momentum on supply. On planning, we will be reducing planning burdens, making better use of empty buildings, bringing people back to live in town centres and supporting shops. There will be funding of more than £1 billion for thousands of new affordable and privately rented homes, for which we know there is demand. We are putting spades back into the ground and more workers back on site, and giving people more options over where they live.
We are also building on the success of our rejuvenated right to buy. Between July and September last year, numbers doubled, but we will go further. That is why we have put before Parliament regulations that will increase the discount for Londoners, where house prices are highest, to £100,000. The measure will come into effect from midnight tonight.
We are reducing waiting lists for tenants who are ready to move on. Under our schemes, new homes will be built to replace those sold. What is Labour’s response? The Local Government Association Labour group says that the new right to buy is
“a cynical move by the government which is in effect forcing a fire-sale of community assets.”
I am sorry that the shadow communities Minister, the hon. Member for Derby North (Chris Williamson), is not in the Chamber. He too attacked the scheme and bemoaned the fact that in the 1980s,
“we saw council houses being sold off in their millions, and now the Government are at it again.”—[Official Report, 6 March 2012; Vol. 541, c. 241WH.]
As the late Alan Freeman would have said, “Not half we ain’t.”
Labour are the enemies of aspiration. Every council tenant on every council estate who wanted to work hard and move up had the ladder of opportunity kicked away from them under Labour. It will be restored by the coalition. The Government have accepted Michael Heseltine’s proposals for devolving power to local areas, a natural extension of the measures in the Localism Act 2011. The Government are taking decisive action in favour of families with ambition.
The head of the CBI said that
“our call for a focus on the short-term boost of housing has been heeded, alongside an increase in longer-term big ticket infrastructure spending…by shifting £6 billion to housing and infrastructure, the Government has sowed the seeds for growth and jobs.”
The Budget is tackling Labour’s toxic legacy. It is prising open the door of opportunity and heralding a day long overdue, when those who have put everything into this country finally get the chance to own a little piece of the place they call home.
I commend the Budget to the House.
Budget Resolutions and Economic Situation
Bob Stewart Excerpts(11 years, 1 month ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Mr Ellwood
My hon. Friend makes the point I was about to come on to. We are suffering from international gloom. Along with other major economies around the world, such as France, Germany, Japan and the United States, we are faring better, despite the problems of high oil and commodity prices and the frustratingly slow resolution of the eurozone crisis. That is thanks to the Government’s strategy of monetary and fiscal responsibility, along with supply-side reform.
In layman’s terms, monetary policies reflect the price the Government pay to borrow money and the total supply of money itself. It is thanks to our low interest rates that the cost of borrowing for individuals, banks and the Government is low. That helps to keep inflation low and provides the stability that investors need for confidence in the markets. On fiscal policy—how much money goes into the pot through taxes, and what comes out to influence economic activity—this Government are smaller than the previous Government. They have cut waste and are costing the taxpayer less, which is very positive. Indeed, the public sector borrowing requirement is down by a third from its post-war peak, only three years ago, of 11.2% of GDP.
There are many incentives in the Budget to help influence economic activity. I will mention just three main measures: the introduction of the £10,000 personal allowance, which essentially is a £700 tax cut for 24 million people; the new £2,000 employment allowance; and a cut in corporation tax to just 20%, which makes us one of the most competitive economies in the G20. They are all signs that Britain is open again for business.
There is not enough time to go through the other key aspects of the Budget that were mentioned in yesterday’s debate. The Help to Buy scheme, the new mortgage guarantee scheme, the cancellation of the 3p rise in fuel duty and the introduction of tax-free child care are all very welcome. I particularly welcome the £3 billion capital spending commitment and the £1.6 billion of sector-targeted funding, some of which I hope will come to my constituency of Bournemouth East, and to Dorset, which is developing an international reputation in aerospace industries and the digital economy. Indeed, it is nicknamed the silicon beach of south England.
The 0.7% GDP target for overseas development assistance spending is an historic achievement and sends an important message to the rest of the world about our lead role in the international community. Unsurprisingly, given the waste and mismanagement under the last Government, some are sceptical about how the money is being spent, but it is clear how ODA funds can be spent. It matters not who signs the cheques; what matters is what the project does, although traditionally the Department for International Development has signed them. On the modern battlefield, however, it is no longer just about defeating the enemy, but about giving the people who have been liberated the skills to look after themselves. Clearly, war fighting does not qualify for ODA funding—that would be wrong—but peacekeeping and nation-building tasks do.
Bob Stewart (Beckenham) (Con)
In 1992-93, when I was sent to Bosnia in a peacekeeping role to deliver humanitarian aid, the cost of my deployment was met by the Ministry of Defence. I felt, and still feel, that the Overseas Development Administration, as DFID was then known, should have paid some of the costs of our operations in the Balkans.
Mr Ellwood
My hon. and gallant Friend’s thinking is the same as the Secretary of State for International Development’s and the Prime Minister’s. Those stabilisation skill sets—post-conflict and nation-building skills—should be funded by DFID but executed by the MOD, because although the budget sits with DFID, it is clear that the MOD is doing incredible work in this post-conflict world. We could have saved £24 billion in Afghanistan and £8 billion in Iraq had we moved from war-fighting to peacekeeping far quicker and avoided the delay that followed completion of the fighting. I urge the Chancellor to consider that matter carefully.
Cyprus
Bob Stewart Excerpts(11 years, 1 month ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Greg Clark
I am scandalised that the situation in Cyprus was allowed to happen in this way. It should not have happened in terms of the supervision of the banking system or the country’s fiscal performance. We will not be able to make an assessment of our guarantee to the armed services until we see the final shape of the negotiations, but when we do I will make sure that the House knows about it.
Bob Stewart (Beckenham) (Con)
Further to the question asked by the hon. Member for Rhondda (Chris Bryant), it is undoubtedly true that the Ministry of Defence has funding in the Bank of Cyprus for operational expenses on our bases, including pay. Are we likely to be scalped? In other words, is it likely that our Government will bail out the Government of Cyprus?
Greg Clark
It is too early to make that assessment, but we should know in the next few days and I will, of course, update the House when the situation is clear.
Corporate Tax Avoidance
Bob Stewart Excerpts(11 years, 4 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Ian Swales
The hon. Lady makes a powerful point. I will say more about that later, but I agree with her that we need more resource in the whole area of enforcement.
I was talking about my experience and how we would never have set up legal entities in countries just to avoid tax. Now, News International has more than 150 companies in tax havens. Transfer pricing, management fees, royalties, patent, copyright and interest payments are all ways to move money. The moving of whole businesses and headquarters to new jurisdictions is also becoming much more common.
Let us remember that companies that are prepared to go to elaborate lengths to avoid corporation tax may seek to avoid other taxes, too. If the BBC was making wide use of tax-avoiding personal service contracts for staff, we can be sure that some private sector companies are doing so, too. At a recent Public Accounts Committee hearing, Amazon told me that it raises UK VAT and pays it to the taxman, but it is a Luxembourg company; it also claimed that it did not even know the value of its sales to the UK. Someone wrote to me after the hearing confirming that they could not get a VAT invoice for their new iPad, bought for business purposes. Amazon said that
“we are unable to provide a VAT number as we are registered overseas”.
Bob Stewart (Beckenham) (Con)
I thank the hon. Gentleman for giving way and appreciate the opportunity to speak on something about which I know little. If a company does not know the value of its sales in the country, I think that HMRC should estimate them, charge corporation tax on that amount, and let the company argue against it to prove that HMRC was wrong. We would then get better corporate tax returns, would we not?
Ian Swales
That is an interesting idea and I thank the hon. Gentleman for the suggestion. HMRC needs to look much more closely at companies that have that type of business model. I agree that we need to start making some presumptions.
Karl MᶜCartney
My hon. Friend will be pleased to know that I agree with him. I will mention PricewaterhouseCoopers shortly.
The objective of business, any business, is not ostensibly to do good or to pursue corporate social responsibility; it is to do business and make money for the owners and/or shareholders. Directors of all small, medium, large and multinational companies have a fiduciary responsibility to maximise gains for that company’s owners, including minimising the tax paid. Any diversion of company management from that objective is wrong as a matter of law and dangerous as we move forward in the 21st century.
John Christensen of the campaign group Tax Justice Network made a true claim when he said that the figures highlight that tax avoidance by large businesses has become a “much bigger issue” over the past 10 years because of the “enhanced relationship” policy put in place. That policy was put in place by the then Labour Prime Minister, Tony Blair, and his then Chancellor and ultimately successor as Labour Prime Minister, the right hon. Member for Kirkcaldy and Cowdenbeath (Mr Brown).
The problem is perhaps exacerbated in that we have a very complicated tax system. The previous Labour Government did nothing to uncomplicate matters. In fact, they set up a whole new industry making it more complex. What we need as a country, and for us to remain an economic powerhouse on the world stage, is much greater tax simplicity and lower tax rates.
I am pleased that the Government are consulting on a general anti-abuse rule, the GAAR, targeted at artificial and abusive tax avoidance schemes, with a view to bringing forward legislation later this year. Echoing my earlier statement, Mary Monfries, head of tax policy and regulation at PricewaterhouseCoopers, has also been quoted in the media saying with regard to our tax system that “simplicity is key”. She described complexity as a
“key problem with the current tax model”,
adding that the GAAR should
“help to act as a disincentive”
against
“abusive, extreme tax avoidance arrangements”.
But I also believe that some of my colleagues are being disingenuous with the great British public in that the vast majority of multinationals mentioned are not breaking any laws and, as the Government make the law, it is their own and our fault if companies use the rules in place to minimise their tax. Our tax legislation is huge and very complex, so any shortcomings are down to Government failure to create and implement the right tax framework.
The multinational aspects of tax collection and avoidance can be solved only by international bodies working together. That will not be easy for any of my ministerial colleagues to achieve I am sure, but as for any avoidance by UK companies, we do not perhaps need this debate now, as the GAAR legislation will, we trust, come into force during the next tax year. Surely that is the mechanism to stop so-called unacceptable tax avoidance that the hon. Member for Redcar seeks to debate this evening. Many private sector individuals in business may view this debate and other pronouncements by some hon. Members as politicians just diverting public opinion away from their own shortcomings by encouraging media interest in the tax avoidance issue. As politicians we organise the rules and therefore as long as what the companies do is legal, morality surely does not come into it much. Google, The Guardian, Amazon and others are perhaps insulated in that they have little direct competition in the services they provide, so no incentive to make voluntary tax payments as they have avoided such sizeable payments for a number of years. But Starbucks is now paying reportedly quite sizeable sums of voluntary tax, not for moral reasons but to protect its brand and customer loyalty—that is, to protect its profits.
Bob Stewart
Surely if a company is making a voluntary contribution of £10 million a year, it must be making very much more than that, and be doing that only because it hopes to get off the hook, and that is something that we must legislate on.
Karl MᶜCartney
My hon. Friend makes a good point. I agree that such a company is probably making a lot more in profit than £10 million for the next two years.
A potential solution is perhaps not to hound companies that legitimately use the tax laws as they are, but to make the tax system such that there is no benefit in tax avoidance—that is, reduce corporation tax rates and the complexity of the system, whilst at the same time cracking down hard on those who are abusing the tax system. This, for those in the Chamber who are technically minded, is known as the old carrot and stick approach.
We want multinationals to headquarter in the UK. Frankly, I cannot complain if they organise themselves to pay the lowest legitimate tax that they can. What I am more interested in is that they bring their jobs and spending power to our shores. It fills our restaurants, houses and shops. It provides secondary support service employment across a plethora of sectors in Great Britain.
Let us not be negative this evening, because that will put businesses off coming here, which is the exact opposite of what we want. We want the whole world to know that Great Britain is a superb place to start up, locate or relocate a business, and with the Conservatives in government we continue to be Great Britain. We can all help to send out the message that we welcome international businesses—even Starbucks, Amazon, PayPal and Google—to our shores and would like them to bring more of their business to the UK. We are a country that is determined to drive down tax rates, as demonstrated by our recent corporation tax reductions, undoubtedly a feather in the jaunty cap of the Chancellor and the Treasury team. We are a great place to do business.
It is telling that employment tax brings in 5.4 times more revenue than corporate tax—£259 billion versus £48 billion—so let us focus on those things that create more sustainable jobs, the positives. One of the Government’s main roles is to make the UK the best country in the world to do business in. Everything else will be easier if we can achieve a massive influx of foreign companies moving their bases and thus employing more people here.
I believe that populist politics masquerading as morality is a Lib Dem trade mark that would inevitably lead us into a vicious spiral, one that is downward and certainly not a virtuous circle. We know that the Lib Dems are desperate to be popular. They often say anything on the doorstep, often expressing views that are diametrically opposed to those of their neighbours in order to garner votes, as anyone who has canvassed after them will know. That cheapness was amply demonstrated by their head of communications—presumably the paper clips organiser—who last month supposedly leaked instructions to Lib Dem Members of this House to monster the Conservatives, people like me and my fellow cuddly Conservative Back Benchers, in their vicious pre-Christmas briefing.
The Liberal Democrats might hanker after a yellow paradise of sand and yellow sun, but it is a very small yellow island they currently inhabit, surrounded by very deep and clear blue water. I think they know that it is likely to become a smaller island. They need to mature as members of the coalition Government. They need a dose of reality over the next two and half years. We are not some paradise or utopia—this is the real world.
I am conscious that my time is almost up and so will conclude. Of course all the Conservatives on the Government Benches want our country to have the most competitive corporate tax system of any major world economy. By doing so we will ensure that our country’s economic recovery will be private sector-led, but we expect those corporate taxes to be paid, regardless of where any larger international firms that do business here might be based or have business operations. A need for fairness and reasonableness from both sides seems to be most apt. In that respect, I am particularly pleased that the Chancellor recently announced extra investment in the part of the Inland Revenue that tackles tax avoidance by multinational companies.
Beer Duty Escalator
Bob Stewart Excerpts(11 years, 6 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Charlotte Leslie
That, too, is a good point. More than a million people are employed in the pub industry in this country, and more than half of them are young people. Pub employment not only constitutes an important first step on the jobs ladder, but provides a great opportunity for career progression. People learn a multitude of skills that will be useful in future careers.
I think that the Government have done quite well. The appointment of a pubs Minister was a very good move—I am sure that we all wish to pay tribute to the previous pubs Minister, my hon. Friend the Member for Bromley and Chislehurst (Robert Neill), for the work that he did, and to welcome the new Minister—and, having produced the Live Music Act 2012, localism and the right to buy, we are now making progress with minimum pricing. All that is good stuff. However, pubs are still closing at the rate of about 12 a week, and we need to do more.
Given that beer represents about 60% of sales in community pubs, it is not very surprising that the beer duty escalator is having such a dramatic impact. It is true that there are other factors, such as social and demographic changes and the fact that, as my hon. Friend the Member for Leeds North West pointed out, it is so easy to sell a pub and turn it into a Tesco—we have probably all seen that happen—and issues involving pub companies and pub ties also need to be considered. However, the escalator is a major component of the problem. Given that all the beneficial elements are being stripped away as pubs close, and that beer sales fell by 5.6% in the third quarter of this year, it is hardly surprising that the Treasury’s own figures show that the escalator is not doing what it is supposed to do and raising funds.
Bob Stewart (Beckenham) (Con)
We have already demonstrated that the beer duty escalator will not increase the finances going to the Treasury, so why the heck do we have to wait until the Budget? Why cannot a Minister make a decent decision and scrap it?
Charlotte Leslie
I think that many of us would like the Minister to make a snap decision and scrap it, but this debate is about a review, and that is an important first step if we want accountability. I should prefer a quicker decision, as I am sure would many other people, because my hon. Friend is right: every day while the escalator continues, pubs are closing, including historic pubs such as the Lamplighters in my constituency. We are struggling to save the Lamplighters, and Pete Bridle, of the local branch of CAMRA, has been fantastic in that regard. Although it is a review for which we are asking, there is definitely a degree of urgency.
So what can we do? Let us get the review done, and I think that its conclusions will be pretty clear. We must also press on with minimum pricing, and we must tackle the discrepancy between off-trade and on-trade alcohol prices. The damaging social effects of cut-price booze in supermarkets are plain for all to see. One solution may be to deal with the discrepancy between pub and supermarket licensing fees. At present, any pub with a rateable value of more than £87,000 pays fees two or three times higher than those paid by a supermarket with an equivalent rateable value, because the multiplier for pubs does not apply to supermarkets. If the Treasury is concerned about tax revenue, we could act now to produce a far more tax-neutral measure.
Let us look at what is at stake. If we end the escalator fast, we can save 5,000 jobs a year—an estimated 16,000 over three years—we can secure a national foundation stone of the big society, which I know is important to our Government; and we can secure our great British beer industry and the pride of Britain, our pubs. I urge the Minister and the Government to end this disastrous beer duty escalator with all speed.
Multiannual Financial Framework
Bob Stewart Excerpts(11 years, 6 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Mr Dodds
Absolutely. When it comes to the European Parliament, nothing surprises me. I must speak up in defence of Members of the European Parliament, including the Member from my party, who consistently vote against these federalist ideas and against increases to the budget, and stand up for the people who contact us daily, saying enough is enough.
With reference to what the EU is doing, let us look at some of the areas of expenditure to which this year alone the UK will contribute £15.8 billion and by 2014-15 £19.2 billion, and that is before the increases going forward. A Member referred earlier to the European Parliament and the fact that it does not have a single seat. Ending that wanton inefficiency would equate to £1.26 billion over the seven years of the 2014-20 period, but there seems to be no appetite in the EU to change that.
With respect to quangos and agencies, there are 56 EU quangos, twice the number in operation in 2004. The cost to European taxpayers has increased by 33% in the past two years alone, with an estimated expenditure of €2.48 billion in 2012 alone. We were told that when it came into being, the External Action Service would not cost the British Exchequer any more money, whereas it has done precisely that. If we got rid of that unnecessary body, we would save EU taxpayers more than €480 million every year.
I think the Minister referred to the House of European History, of all things, which, I am told, is aimed at promoting an awareness of European identity since 1946. It will cost £136.5 million by 2015, with British taxpayers contributing £18.6 million. Those are simply a few examples of the absolutely scandalous waste of money towards which our taxpayers are having to contribute year on year through our contributions to the EU budget.
Bob Stewart (Beckenham) (Con)
Is this not simply about fairness? It is fair for the European Union to make the same sorts of cuts that we are having to make at home. That is fair and that is what we should pass tonight.
Mr Dodds
The hon. Gentleman is absolutely right that this is about fairness. It is also about being seen to connect with the electorate, the people who send us here, as the hon. Member for Vauxhall (Kate Hoey) said. One of the problems with Parliament and politicians generally is that people do not feel that we have any connection with them or relate to their day-to-day problems. The choice before the House tonight is clear: either we vote to send a clear message that enough is enough, we expect what applies to UK Government expenditure and the national budgets of other member states to apply to the European Union, and our choice is to be on the side of the taxpayer and our people, who are out there suffering daily as a result of the cuts—
Finance Bill
Bob Stewart Excerpts(11 years, 10 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Mr Frank Field
I want to speak to new clause 3, although it might first be appropriate to pick up on one theme from the speech by the hon. Member for Truro and Falmouth (Sarah Newton). She said she was pleased that the Chancellor was creating a level playing field. Well, if there is any area of the country where it would be difficult to create level playing fields, it would be in Truro. But anyway, I am pleased that she is satisfied.
I wish to make a plea for a level playing field for young people in my constituency and other constituencies who go to sixth-form colleges, and I wish to compare their tax position with that of young people undertaking sixth-form studies in school. In a recent Westminster Hall debate, led by my right hon. Friend the Member for Sheffield, Brightside and Hillsborough (Mr Blunkett), we discussed how poorer young people in sixth-form colleges or similar establishments were discriminated against in respect of free school dinners compared with young people in school. Here is yet another example of discrimination against young people, depending on the institution they attend.
I plead again with the Government, in respect of VAT, to treat sixth-form colleges as we treat schools with sixth forms. In Birkenhead, most pupils have no option but to attend sixth-form college if they want to undertake post-16 studies because the sixth forms of most of the schools were pooled together in that one enterprise. The VAT on services that the college purchases, but which schools do not pay, adds £300,000 to the college budget—a reduction of 4% in that budget.
My plea to the Chancellor will be brief and simple;I will not go up and down the country lanes, visiting various constituents, bakers and so on. He hoped to create a level playing field for taxation for sixth-form colleges and sixth forms in schools by the end of the Parliament. That was a noble objective, but the 2015 election, as it draws ever nearer, will certainly concentrate Government Members’ minds not only on small U-turns but perhaps on more major ones.
The Institute for Fiscal Studies undertook an analysis of the Government’s public expenditure changes which showed that the part of the education system that will be most handicapped and suffer the largest cuts by 2015 will be colleges of further education. Indeed, they will experience a 20% real-terms cut in their budgets by 2015. I know that it would not be in order to ask the Minister to respond to that, but given that the Government’s policies are making the playing field even more unequal for sixth-form colleges, compared with the treatment of sixth forms in schools, let me make a plea for him to concede that point and exempt sixth-form colleges, whose students are of an age that if they were not at college, they would be in school.
Bob Stewart (Beckenham) (Con)
I do not understand why this has ever occurred. How come a sixth-form college is not treated exactly the same as a sixth form in a normal school? They may be in different areas, but they are essentially the same kids. I do not understand it, so perhaps the right hon. Gentleman—my friend, because I have known him a very long time—can tell me the answer.
Stephen Gilbert
I feel as if I have fallen into a parallel universe in this debate. It is interesting, is it not, that although Labour crashed the economy so totally, Labour Members today want to provide a £12 billion giveaway by reducing VAT—something that would presumably have to be paid for by further cuts in the public services that they say they want to protect, or indeed by an increase in borrowing. It seems inconceivable to me that this measure is on the amendment paper in the name of Labour Members. I recall that when I was growing up there was television programme called “Jamie and the Magic Torch”. I used to enjoy it considerably, but it seems that we have a show on the other side of the Chamber tonight called “Ed and the Magic Money Tree”, with the Opposition unable to be clear or consistent about their VAT policy.
Another bizarre aspect of the debate is that when the Government are forced into what my hon. Friend the Member for Brigg and Goole (Andrew Percy) refers to as a “recalibration” on a number of issues, which my constituents certainly welcome, the Opposition oppose the measures that the Government are taking to address the problems that they initially highlighted. It strikes me as utterly bizarre that, a few months ago, the hon. Member for Newcastle upon Tyne North (Catherine McKinnell)and her hon. Friends raised concerns, as did I and other hon. Members, about the pasty tax, the caravan tax, the problems affecting static caravans and other issues, yet tonight the same hon. Lady and her colleagues are going to vote against the U-turn that the Government have made. It may well be the case that the Government have made a U-turn, but it is clear from the positioning going on tonight that Labour has taken a wrong turn.
Labour Members cannot have it both ways. They cannot criticise a Government for being cavalier when they do not listen, and then criticise them as chaotic when they do listen. As they well know, the reality is that on all these issues, particularly on tackling anomalies in the VAT system, the problems were set out in the consultation that my right hon. Friend the Chancellor rightly announced. That consultation was widely subscribed to by many interested parties, and the Government took the responses to it into account and changed their view on the back of the evidence they received. I for one recognise that none of us has a monopoly of wisdom. It is surely in the finest traditions of good government that the people likely to be affected by these rules are listened to and that a Government take advice if a deleterious effect is pointed out.
Labour Members talk about the need to consult, but when they abolished the 10p tax rate, plunging millions of the lowest paid into further tax, I do not think they consulted on that measure. That is why, as I say, the last few moments of the debate have been somewhat eye-opening, highlighting the sheer opportunism of the Opposition in opposing a U-turn. They call for consultation, then, in the very debate that shows that the Government are listening, they choose to ignore it. Frankly, as I said at the outset, that is bizarre.
My constituents would want me to welcome new schedule 1 and Government amendment 17. Those provisions will protect jobs in Cornwall, protect the Cornish high street and high streets across the country, protect the secondary spend in the wider economy and will ensure that Cornwall, which is already a disadvantaged part of the our United Kingdom, is not further disadvantaged by proposals that the Government have, thankfully, amended.
I would also like to thank the Minister. In all the discussions between him, me and my hon. Friends, he has always been entirely professional, courteous and constructive in his engagement. I would like to thank others, too. As the hon. Member for Newcastle upon Tyne North knows, Greggs is based in her constituency. Its effort to mobilise more than 500,000 signatures across the country for a petition that my hon. Friends in Cornwall and I were able to deliver to Downing street showed the level of grass-roots concern about proposals that could have been very damaging.
I thank the National Association of Master Bakers; that is not a sentence that one wants to rush through! Its engagement with this issue has been constructive and professional, and it has represented the views of its industry to the Government very effectively. For what will probably be the only time in my life, I also thank and pay tribute to The Sun, which ensured that the issue touched the popular zeitgeist and was able, ultimately, to deliver change. More locally, the Western Morning News, the voice of the south-west, played a useful role in keeping the issue in the public eye.
I can tell the Minister that people in Cornwall are relieved that this coalition Government took soundings, listened and, at the end of the day, delivered a result that will protect an iconic and important Cornish industry. It is estimated that the measure will safeguard about 13,000 jobs in Cornwall, put hundreds of millions of pounds into the local economy, and guarantee the production of the 180 million Cornish pasties that are made in the county every year.
Bob Stewart
Everyone has been saying how great it is that VAT will no longer be charged on pasties, but I should point out those who own fish and chip shops are at a slight disadvantage by comparison. I just want to balance the equation a bit, and that is one of the things that we were trying to put right.
Stephen Gilbert
I entirely agree with my hon. Friend. He will be pleased to know that new schedule 1 will deliver the level playing field to which he and my right hon. Friend the Prime Minister have referred, and on the subject of which I have received representations from fish and chip shops in my constituency.
If a product in a fish and chip shop is being kept artificially warm it is standard-rated, and new schedule 1 will ensure that the same applies in a pasty or pie shop. The simplicity for which the Government aimed has been delivered, as has the level playing field for suppliers of hot food. I hope that my hon. Friend will convey to the fish and chip shop proprietors in his constituency with some enthusiasm the message that, as a result of the constructive process of consultation and engagement undertaken by the Government, the special status of baked goods which are hot only as a product of their baking process has been recognised. The fact that a freshly baked hot pasty which is simply cooling down will remain VAT-free should be welcomed by one and all.
Julie Hilling
I took my car for a service last week at my local garage, which is a one-man band. He said, “For heaven’s sake, will you get rid of that lot? They are ruining my business.” When I asked him what he meant and what the Government were doing that was ruining his business, his reply was, “VAT—the 20% rate is destroying my business, and all the other small business owners I know think exactly the same.” Sadly, a reduction in VAT from 20% is not an option in this debate, but putting VAT on to so many other things just increases the problem for hard-pressed businesses and struggling people.
Bob Stewart
The hon. Lady tells us that she went to her garage and the man said, “Get rid of that lot”, but what would her lot do instead to give him much more business? That is what I would be delighted to hear, and I hope that she can give me an answer.
Julie Hilling
What Labour would have had is jobs and growth. We would not have been in a double-dip recession and we would not be in this stupid position of cutting too fast and too deep, which is ruining the British economy. Unfortunately, we are not in government.
It has been incredibly difficult to prepare this speech, because it is hard to work out, in this omnishambles of a Budget, what this disorganised Government have done a U-turn on. Perhaps I should not call them U-turns, because in many cases the Government have done them only partially; I am not sure whether these are L-turns or C-turns. I thought that they had done a full U-turn on the caravan tax, but I discovered this afternoon that they have not done a full U-turn at all, and the pasty tax is as clear as mud. I was having a discussion with colleagues before this debate as to what food is now VAT-able and what is not. It seems that a rotisserie chicken that will be cold when someone eats it is VAT-able, whereas a pasty that comes out of the oven will not be, unless it is put on a hot plate. But what happens if the oven is put on low so that the pasty is just kept warm? Will that pasty be VAT-able or not? The Minister needs to explain to me and the nation how this proposal is different from his first proposal, and how it is to be policed. Will taxmen regularly visit all the sandwich shops in the country to check on their ovens? That needs further explanation.
What about the mess of heritage tax? Again, we saw panic among Government Members and a little U-turn, perhaps to silence the bishops and return some money to places of worship for their alterations. However, £30 million will not go far, and the tax has been a huge blow to many communities.
Catherine McKinnell
Members of the public will find this distasteful. We all share concern about the situation with the banks and the terrible events that have come to light in the past week or so. Government Members should be taking the lead on putting the situation right, but all they are interested in is scoring party political points. They need to be careful if they are not to lose all the public’s trust in their ability to start putting things right.
The Government can take action today. Stephen Hester, chief executive of RBS, has rightly said that he will decline his bonus this year in recognition of the serious damage that his bank has caused. Bob Diamond, chief executive of Barclays, resigned this morning over the currently developing scandal. It is right that those in charge take responsibility.
However, the banking industry as a whole is still benefiting from a tax cut this year—a tax cut, when their incompetence has cost thousands of people days of frustration, inconvenience and hardship. They have a tax cut when champagne swaps and dodgy dealing have been used to fiddle internal lending rates and when small businesses have been ripped off in yet another mis-selling scandal.
Our bank bonus tax would set that right, making the banks pay their fair share in tax instead of letting them get away with it. We want the money to be used to create 100,000 jobs for young people who are at risk of becoming the next victims of this double-dip recession made in Downing street. Labour’s bank payroll tax raised £3.5 billion in 2010-11 but this Government replaced it in 2011-12 with a levy raising just £1.8 million—barely more than half. Those are the Office for Budget Responsibility’s own figures, set out on page 101 of its economic and fiscal outlook paper in March this year.
The autumn statement in November last year had forecast a higher first take, but that turned out to be over-optimistic. That could be the case with future forecasts. The levy is supposed to raise £2.8 billion in 2014-15, but we cannot be sure of getting that. The OBR has had to keep revising all forecasts down and down, apart from those for Government borrowing, which keep going up and up. It is clearly inadequate to introduce a levy on banks with only half the yield of the previous tax. Along with the richest 1% of the country who have benefited from the scrapping of the 50p tax rate, this is one of the only parts of the Budget where the Government have given handouts. What does that tell us about their priorities? It tells us that they are not on the side of working people hit by the banks’ recent malpractice, but on the side of banks and millionaires. That shows just how out of touch this Government are.
We want to take tough measures to make the banks pay their way, and bringing back the bonus tax on top of the new levy is the fairest way to do that. It is clear where that extra money needs to go. We would use our double bank tax to plug the gaping hole in jobs and growth left by the Chancellor’s omnishambles of a Budget, which contained not one mention of the word “jobs”.
Bob Stewart
The hon. Lady envisages producing 100,000 jobs. What sort of jobs would they be, and how would they contribute to the economy?
Catherine McKinnell
It is nice to receive a considered intervention from a Conservative Member. The 100,000 jobs would be created through support from the future jobs fund. They would be guaranteed jobs paid at the national minimum wage for six months to give young people a real chance of getting on to the employment ladder.
This is about not only providing those jobs but creating economic growth and putting money into people’s pockets to create those opportunities. That aspect was absent from the Chancellor’s Budget speech, which is all the more shocking because of the seriousness of the problem. At Christmas, the number of young unemployed people reached 1 million for the first time since comparable records began, and long-term youth unemployment is rocketing too. Across the UK, the number of people aged 24 and under who are claiming out-of-work benefits for more than six months has increased by 60% since May 2010, while the number claiming for more than 12 months has more than doubled by over 125%. In this double-dip recession, young people cannot find work because between five and 10 people are chasing every vacancy. Depending on which part of the country they are in, it could be, and often is, a lot worse. The jobs are simply not there for young people to go into.
Yet the Government recklessly cancelled the very programme that was designed to create youth jobs. We want to use money raised from banks to put that right. In opposition, the Government supported Labour’s future jobs fund, which got young people into real, paid jobs. The Prime Minister called it “a good scheme”, and the Conservatives said that they had
“no plans to change existing Future Jobs Fund commitments”.
I apologise to the hon. Member for Beckenham (Bob Stewart) for my response to his intervention; in fact, it is through the real jobs guarantee that we would look to invest in new job opportunities for 100,000 young people. The future jobs fund was the successful scheme that the Prime Minister heralded as “a good scheme” but it was scrapped as soon as this Government took power.
I see that no Liberal Democrats are here for this debate. That is a crying shame and a shocking indictment of their commitment to young people and to making sure that bankers pay their way. The Liberal Democrats also pledged their support to the future jobs fund but swiftly supported the Government in scrapping it as soon as they got into power. In April 2010, in a letter to the Association of Chief Executives of Voluntary Organisations, their then work and pensions spokesperson —now the Minister of State, Department for Work and Pensions, the hon. Member for Thornbury and Yate (Steve Webb)—said:
“We have no plans to change or reduce existing government commitments to the Future Jobs Fund. We believe that more help is needed for young people, not less”.
The future jobs fund was scrapped just one month after that letter was sent.
Let us remind ourselves of what that scheme achieved. It offered every young person up to the age of 25 a job if they had been out of work for six months, with penalties for anyone who refused the opportunity. The jobs were real jobs, paid at the minimum wage, that lasted for six months—and that was guaranteed.
Graeme Morrice
I agree. Many of my constituents who work in the banking and financial services sector contact me regularly to express concern about what their employers are doing.
Bob Stewart
The problem with the banks seems to be that they will not lend because they are frightened, and they are frightened because they must have money themselves. Perhaps we should think about the connection between bonuses and the way in which banks lend to small businesses, and perhaps a decent bonus could then be given to a bank that is run by someone who helps the economy by lending.
Graeme Morrice
That is a valid point, with which I shall deal shortly.
The strength of the balance sheets and the corporate reputation of our banks are crucial building blocks enabling us to restore confidence in the economy and return to growth. However, I am afraid that the Prime Minister’s limited parliamentary inquiry into what happened at Barclays will not command the confidence of the public, or be regarded as an adequate response to the catalogue of failings and scandals that have befallen our banks in recent years.
The full public inquiry into banking standards that has been called for by my right hon. Friend the Leader of the Opposition would be the most effective way of demonstrating to the public that both politicians and those in the industry are serious about ending unacceptable practices and taking steps to restore faith in our banking system. A repeat of the bank bonus tax would help to reassure the public that bankers are making amends for their part in our current economic woes by helping young people to return to work and enabling new homes to be built.
I know that many Government Members believe that the bankers have been let off lightly in regard to bonuses and paying their fair share towards recovery. Senior Government figures have talked tough on bank bonuses, but have stopped short of taking meaningful action. Indeed, rather than ensuring that bankers made a bigger contribution, the Chancellor gave them a massive tax cut in the Budget, as a result of which the richest bankers will pay millions less in tax from next April. As Deborah Hargreaves, chair of the High Pay Commission, said when the new 45p rate was announced:
“This tax cut for bankers will be galling for the millions of pensioners who will see their bills go up because of this Budget.”
As well as the reduction in the personal tax paid by bankers, the Chancellor’s cuts in corporation tax mean the banks received a tax cut last year and will do so again in future years. Despite the Chancellor’s slight increase in the rate of the bank levy in January this year and 2013, the Government’s failure to repeat the bank bonus tax leaves the banks considerably better off, while our constituents face cuts in tax credits, higher living costs and a squeeze on millions of pensions.
At the same time, small businesses across the UK continue to struggle to access the lending they desperately need to grow and create jobs, with lending to SMEs having fallen by more than £9.5 billion last year.
Rushanara Ali
I thank my hon. Friend for his intervention and hope that the Government are listening. They must understand how serious the matter is and the deep resentment and anger that are felt in constituencies such as mine. The borough that contains my constituency is also the borough in which Canary Wharf is based and the injustice of some of the behaviour and the worst abuses in the banking sector must be addressed. The Government must take responsibility.
Bob Stewart
It is very decent of the hon. Lady to give way. When she refers to figures that are 600 times a normal wage or to huge bonuses, at least there is compensation. If those sums are declared, quite a lot—perhaps 40%—will come back to HMRC, which we could then redistribute. It is better that way than if it is hidden offshore.
Rushanara Ali
The hon. Gentleman should perhaps look at the tax records of Barclays bank, as he will find that it has not paid the taxation that it should have paid. His Government should do more to ensure that the taxes that should be paid are paid. I also think that his Government has a poverty of ambition in not accepting our amendment to make a massive difference to unemployment in constituencies such as mine. I urge the Government to think hard about the impact on the 1 million young people—a sizable number of whom are in my constituency—and consider what could be done to address the problem rather than trying to defend bankers’ bonuses.
Business and the Economy
Bob Stewart Excerpts(11 years, 12 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Mr David Evennett (Bexleyheath and Crayford) (Con)
I am pleased to be able to speak today in support of the Queen’s Speech, which continues this Government’s progress in their endeavours to deal with the real problems facing our country. We meet today to discuss a wide range of issues in difficult and dangerous economic times. I commend my right hon. Friend the Secretary of State for Business, Innovation and Skills for his approach, and I am pleased to follow the logic of my right hon. Friend the Member for Wokingham (Mr Redwood) and my hon. Friend the Member for Poole (Mr Syms). The right hon. Member for Birkenhead (Mr Field) made a powerful speech, but I believe he got it wrong.
We on the Government Benches have a strategy and proposals to deal with our economic situation. Of course we need dynamism, businesses and more jobs, and we need to get involved in markets across the world. However, I welcome the fact that this Queen’s Speech is not inundated with new Bills. Under the unlamented Labour Government, there was too much legislation, and mere legislation is not the answer. This programme has targeted legislation dealing with the real issues—for example, the enterprise Bill and the banking reform Bill, both of which are vital and helpful.
The Queen’s Speech must be viewed as a continuation from the Speech two years ago and the recent Budget. The previous speaker, the hon. Member for South Down (Ms Ritchie), was wrong. The Budget increased the income tax personal allowance to £8,105 from this April, benefiting 25 million people by up to £126 a year. That is a real achievement. Last month’s increase in the personal allowance will take 260,000 people, the lowest earners, out of income tax altogether, so the hon. Lady was quite wrong when she said that the Government were not doing anything for the majority in this country: they are.
In particular, at the heart of the Government’s approach is the determination to get our economy back on track, growing and creating new businesses, new jobs and new opportunities. As stated in the Speech, Ministers’ first priority is to reduce the deficit, restore economic stability and focus on economic growth. That is fundamental to any Government, and this Government are committed to doing so. The legislative programme is helpful in reducing burdens on business by repealing unnecessary legislation and limiting state inspection of business. These are welcome steps.
In addition, there are proposals to reform competition law and to promote enterprise and fair markets. I welcome the introduction of an independent adjudicator to ensure that supermarkets deal fairly and lawfully with suppliers. I strongly support measures to make parental leave more flexible so that both parents can share parenting responsibilities and balance the work and family commitment in today’s complex, challenging and demanding society. This must be a positive and welcome addition. Of course, growth, jobs, businesses, especially small businesses, are vital, but so is the families and children Bill, which will reform adoption procedures, improve and overhaul special education and give flexible parental leave, which I have already highlighted.
I strongly support the measures for small businesses. Without doubt, the economy is the main problem facing our country, and it has consequences for all of us. We are fortunate that we did not join the euro; otherwise, things would have been far worse.
Bob Stewart (Beckenham) (Con)
I have a small business in my constituency that is very profitable and has been so for 28 years. It requires some help from the bank but that is not forthcoming. The bank will not loan it any money and as a consequence it has had to sell one of its buildings. We must get that right. We must ensure that banks release equity so that our companies can get moving. I hope my hon. Friend agrees.
Mr Evennett
My hon. Friend is absolutely right. That is one of the key factors. We must ensure that businesses are lent money by the banks to ensure that they continue to flourish and be profitable. We must never forget that small businesses are the backbone of our economy; the backbone of our country. There are 4.5 million small and medium-sized firms, making up 99.9% of all enterprise in the UK. I welcome the comments of the hon. Member for Huddersfield (Mr Sheerman)—who, regrettably, is not in his place now—who was passionate about small businesses and their importance for the future. They are a vital element. Businesses create the wealth that allows the Government to fund all our vital public services. Therefore, we are all, on whichever side of the House, keen to encourage, enthuse and improve small businesses so that they can be profitable for the benefit of society as a whole. The most competitive nations have clear strategies to support business. They have lighter regulation, less interference, competitive tax regimes, banks that support them, or should support them, and employment laws that make it easy to hire people. Businesses need help from the Government, not hindrance or neglect. Opposition Members did not give a lot of help to small businesses when they were in power, and I will take no lectures from them on this today.
In two years, the Government have made real progress. Corporation tax has been cut and there have been more apprenticeships and financial assistance to support work-based learning. I am a huge supporter of apprenticeships and commend the work of the Minister for Further Education, Skills and Lifelong Learning, my hon. Friend the Member for South Holland and The Deepings (Mr Hayes). His enthusiasm and success are infectious, and we now have more apprentices than we have ever had in the recent past, and that is to be commended.
A red tape challenge campaign was launched by the Government to listen to businesses’ concerns about regulation. A national loan guarantee scheme has been introduced, so hopefully businesses can get access to the credit that they need to survive and grow. Business is important to this Government and to our society. Under the last Government, businesses were taxed more and regulated more, and they did not get the support that they needed. This Government are going forward positively to ensure that that they do.
The Queen’s Speech is essential. It is essential to get the economy growing and to take the right approach, tenor and leadership, and this Queen’s Speech will achieve that. The economy and business are fundamental to our society and the Queen’s Speech has at its centre the economic future of our country.