Finance (No. 2) Bill

Debate between Bob Stewart and James Cartlidge

Committee of the whole House
Wednesday 19th April 2023 Commons Chamber

[James Cartlidge]

We have had pensions and energy, and we conclude with alcohol, and of course one other minor matter is covered. We are specifically debating clauses 27, 47, 48 and 50 to 60, and schedules 7 to 9, which cover powers to clarify the tax treatment of devolved social security benefits—that is the measure not relating to alcohol—as well as the change to alcohol duty and the introduction of two new reliefs for alcohol duty.

Clause 27 introduces a new power to enable the tax treatment of new payments or new top-up welfare payments introduced by the devolved Administrations to be confirmed as social security income by statutory instrument. The changes made by clause 27 will allow the UK Government to confirm the tax treatment of new payments or new top-up payments introduced by the devolved Administrations within the tax year, rather than their being subject to the UK parliamentary timetable.

I will now turn to the main issue of alcohol duty, and specifically clauses 47 and 48, which set out the charging of alcohol duty, and schedule 7. In line with our plan to manage the UK economy responsibly, we are reverting to the standard approach of uprating the previously published reformed rates and structures by the retail price index, while increasing the value of draught relief to ensure that the duty on an average pint of beer or lower-strength cider served on tap in a pub does not increase. Most importantly, these clauses introduce the Government’s historic alcohol duty reforms: the biggest overhaul of the alcohol duty system in over 140 years, made possible by our departure from the European Union.

The current alcohol duty system is complex and outdated. The Institute for Fiscal Studies has said that our system of alcohol taxation is “a mess”; the Institute of Economic Affairs has said that it “defies common sense”; and the World Health Organisation has said that countries such as the UK that follow the EU alcohol rules are

“unable to implement tax systems that are optimal from the perspective of public health.”

As such, at Budget 2020, the Government announced that they would take forward a review of alcohol duty. This legislation is the culmination of that review, and makes changes to the overall duty structure for alcohol. It moves us from individual, product-specific duties and bands to a single duty on all alcoholic products and a standardised series of tax bands based on alcoholic strength.

The clauses we are debating today repeal and replace, with variations, the Alcoholic Liquor Duties Act 1979 and sections 4 and 5 of the Finance Act 1995. Specifically, clause 47 provides for alcohol duty to be charged on alcoholic products, clause 48 explains where the rates of alcohol duty can be found—that is, in schedule 7—and schedule 7 itself provides the standard or full rates of alcohol duty to be applied to alcoholic products. This radical simplification of the alcohol duty system reduces the number of duty bands from 15 to six, and has only been made possible since leaving the EU. Now, thanks to the Windsor framework, I can confirm that these reforms can now also be implemented in Northern Ireland. The new alcohol duty structures, rates and reliefs will take effect from 1 August this year, which brings me to the new reliefs.

[Bob Stewart (Beckenham) (Con)]

As a member of the Campaign for Real Ale, may I ask the Minister whether that means beer that is not very strong will come down in price?

[James Cartlidge]

That is an excellent question from my right hon. Friend. As he will appreciate, there is obviously a difference between the duty and the price—we control the duty. As I am about to explain, we are doing everything possible, and I hope he will be interested, because I know that members of CAMRA have great fondness and support for our brilliant pubs up and down the country.

The first of the two new reliefs, which is our new draught relief, applies to alcoholic products under 8.5% alcohol by volume intended to be sold on draught. This draught relief is historic, because as Members will remember, in the EU, we had a thing called the EU structures directive. Under that directive, as a country, we could of course vary our alcohol duty—we could increase it, decrease it or whatever—but what we could not do was charge differential duty between the on trade, meaning pubs, and the off trade, meaning supermarkets, retail and so on. For the first time, we will have that differential draught relief, and I am pleased to confirm that in the Budget, we brought forward two very important measures in relation to that relief. It had been anticipated that we would set the draught relief at 5%, but the Chancellor confirmed in the Budget that it would be increased to 9.2%. I can therefore confirm to my right hon. Friend the Member for Beckenham (Bob Stewart) that as a result of that increase in the draught relief, when the new system comes in this August, the duty on the average pint of beer or lower-strength cider that people buy in pubs will still be frozen.

More importantly, we have issued our Brexit pubs guarantee. As I say, this change would not have been possible in the EU, and we are using this opportunity to send a very powerful message to our pubs: to guarantee that from August onwards, the duty on a pint in a pub will always be lower than the duty on the equivalent in a supermarket.

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[James Cartlidge]

There are spirits that will benefit from the differential—not spirits served from what I think are called optics, but spirits served on tap. There are mixers served on tap that will benefit from a more generous differential duty. On spirits, I am more than happy to set out further detail when I respond to the relevant amendments, because I think they are specifically focused on Scotch whisky, and I understand the concerns there.

I just want to finish my point on our Brexit pubs guarantee. Just to underline what we are doing, we are giving pubs a new permanent competitive advantage. We are levelling the playing field against supermarkets. Following the difficult times that pubs have had with the pandemic and higher energy costs, that hopefully gives them a new narrative for their communities with more positive times to look forward to ahead. That is what we want for our pubs. As my right hon. Friend the Member for Bexleyheath and Crayford (Sir David Evennett) said, they are so important for our communities and our economy. We continue to do everything possible to back the great British pub.

[Bob Stewart]

It seems that we will finish early tonight, in which case I am going straight to the Jolly Woodman in my constituency. I hope I will be able to tell it that the price of its beer will come down. Is there any possibility that there can be a differentiation to encourage real ale, speaking as a member of the Campaign for Real Ale?

[James Cartlidge]

I hope my right hon. Friend is welcomed with open arms in the Jolly Woodman, having given it fulsome promotion. I might make do with Strangers Bar downstairs. Real ales will benefit from the differential duty, particularly those served on tap. There are lower rates for those with lower alcohol by volume, which will hopefully encourage innovation. I hope that will support our craft brewers, not least with the second relief, which replaces and extends small brewers relief with a small producer relief applying to alcoholic products under 8.5% ABV produced by those making less than 4,500 hectolitres of alcohol per year. That will be precisely those sorts of craft brewers.

Clauses 50 to 53 introduce the new draught relief and clauses 54 to 60 provide for the new small producer relief. Taking each clause in turn quickly—I will canter through them—clause 50 explains that alcohol duty is charged on qualifying draught products at the reduced rates shown in schedule 8. Clause 51 sets out the eligibility criteria for draught relief. Clause 52 defines repackaging for the purposes of draught relief and introduces a penalty for repackaging that is not authorised. Clause 53 provides assessment and penalty consequences for a person repackaging qualifying draught products in a way not allowed under clause 52. Clause 54 provides for discounted rates to be charged on all small producer alcoholic products and explains how the discounted rate is calculated. Clause 55 defines small producer alcoholic products.

Clause 56 introduces the criteria for determining whether premises used to produce alcoholic products are small production premises. Clause 57 explains the alcohol production amount used for the purposes of determining eligibility for the duty discount and calculating the duty discount for small producer alcoholic products. Clause 58 sets out the circumstances, other than not meeting the eligibility conditions, in which alcoholic products are not small producer alcoholic products. I hope hon. Members are all following. Clause 59 and schedule 9 set out how to calculate the duty discount used to determine the discounted rate for small producer alcoholic products, and clause 60 allows the commissioners to assess alcohol duty that is due in circumstances where the small producer rate has not been applied correctly. The remaining clauses concerning alcohol duty will be debated in the Public Bill Committee.

Libyan-sponsored IRA Terrorism

Debate between Bob Stewart and James Cartlidge

Thursday 10th May 2018 Commons Chamber

[Bob Stewart (Beckenham) (Con)]

In 1999, “Bandit Country: The IRA & South Armagh” a book by Tony Harnden, outlined in some detail the links between Libya and the Provisional IRA. The Provisional IRA’s campaign was given huge stimulus by the series of vessels full of weapons that arrived in places such as County Wicklow from the mid-1980s onwards. We are talking about missiles, ammunition and explosives. We make a mistake if we think it was just explosives, because people were killed by Kalashnikovs, rocket-propelled grenades and so on; they were killed by Libyan-inspired weapons. I wish to outline one shipment, to give colleagues an idea of what was coming in.

In about October 1986, a deal was arranged between Thomas “Slab” Murphy of the Provisional IRA, who is pretty well known to people like me, and Nasser Ali Ashour, a Libyan intelligence officer and diplomat. It took about 30 Libyan soldiers two nights to load up a converted Swedish oil rig replenishment ship called the Villa. Some 80 tonnes of weapons and explosives were put about the Villa, including seven RPGs, 10 surface-to-air missiles, a huge number of Kalashnikovs and one tonne of Semtex H, which is an incredibly powerful plastic explosive. It is far more powerful than the normal fertiliser-based bombs used up until that time. The Villa slipped through international waters and landed at Clogga Strand in County Wicklow. From there, its load was spirited away to long-term hides and then secretly distributed to Provisional IRA active service cells for use to kill indiscriminately.

It is indisputable that the Gaddafi regime—let us not say Libyans—supplied weapons and explosives used by the Provisional IRA. It is indisputable that so many innocent people died as a result of Provisional IRA activity using Libyan-supplied arms and explosives. It is indisputable that other nations have ensured compensation for victims of Libyan-backed terrorism. It is indisputable that huge sums of Libyan cash are frozen in London’s banks—we have just heard that there is nearly £12 billion of it. Surely the Government can find a mechanism that can compensate victims, perhaps in advance for those who are getting older, sometimes living in agony or in poverty. Get some money to them!

[James Cartlidge]

My hon. Friend is making a fantastic speech. I was not even aware of the figures cited by the hon. Member for Poplar and Limehouse (Jim Fitzpatrick). Do those figures not suggest that when the request is made, we could return the assets to Libya with some kind of indexing so that it got the full value of its assets, and there would still be billions left with which it could pay recompense?

[Bob Stewart]

They do indeed—my hon. Friend is so right. We could use just a little of the interest. That is all it would take: just a little of the interest to compensate our citizens for this criminal terrorist activity. I am quite sure that decent, honourable Libyan citizens would want that to happen. The Government have a duty to do something about this.

Flexible Ticketing: Rail Transport

Debate between Bob Stewart and James Cartlidge

Thursday 10th March 2016 Commons Chamber

[James Cartlidge (South Suffolk) (Con)]

It is a great privilege to be called to speak in my first Adjournment debate, Mr Deputy Speaker, and for it to arrive early, which is not something we can always say about trains on the great eastern main line.

The great eastern main line is a massive issue for people in my constituency. Our railways are a key strategic asset and the performance of the line has, frankly, not always been up to scratch. I want to focus on an important part of the line: the ticketing structure, and the annual, monthly or weekly season tickets that my constituents buy. I feel strongly about the availability of part-time season tickets.

I am the first to recognise that hon. Members on both sides of the House have raised this issue and my right hon. Friend the Member for Witham (Priti Patel) has done a lot of work on it. Pressure groups such as Transport Focus have campaigned for it. I am proud to say that it featured in the victorious Conservative manifesto at the last general election, which stated:

“We will also introduce smart ticketing and part-time season tickets.”

Why did I want to secure this Adjournment debate? It is basically due to lobbying from the focus group—the lobby group—that matters more than any other to me: the hard-working commuters and constituents of South Suffolk. To make my case, there is nothing better I can do than to follow the example of the Leader of the Opposition and read two emails from my constituents. I have had many emails about this, but two in particular cover the case for flexible ticketing.

The first is from—

[Bob Stewart (Beckenham) (Con)]

Rosie.

[James Cartlidge]

Calm down. It is from Deborah Adams of Sudbury. Sudbury is the main town in my constituency—a beautiful market town; the home of the great Thomas Gainsborough. She writes:

“A few years ago David Cameron announced the phased introduction of flexible season tickets for rail travel. As someone that commutes to London from Sudbury 2-3 days a week, this struck me as a very good idea. However, I have not been able to find out any more about it.

Flexible season tickets are an excellent idea, especially for constituencies like ours where there are large numbers of commuters. Many work from home some days, which makes the price of a regular season ticket of questionable value.

Flexible season tickets would encourage more people to work from home some days, which would reduce overcrowding on the trains, and would benefit South Suffolk, as more people would have time to spend their London wages locally.

It is very old-fashioned to think that workers go to their office every day and we should not be penalised for flexible working.

A system whereby a commuter could say buy 10 day returns for the price of 6-7 would really encourage the flexibility that the modern work force needs when juggling work and family life.

What do you think about this?”

She hits the nail on the head.

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[James Cartlidge]

In French it is a “car-nay”; in Barnet, we called it a “car-net”. It was a small book of tickets that were usually valid for up to three months on the tube, which was very handy and convenient when I was teaching English as a foreign language and did not know which days I would be working. Of course, that has been phased out now that we have moved to the Oyster system. The key problem with the previous system was the absence of technology. If we want flexible ticketing, we need the technology, as my hon. Friend the Member for North East Hampshire (Mr Jayawardena) has said.

[Bob Stewart (Beckenham) (Con)]

I rise because I am an expert on technology. Train companies could easily do this through the use of technology, but they do not want to do it, because they make a profit out of people such as my hon. Friend’s constituents and mine in outer London. They could easily do it with—what is it?—a part-time Oyster card or something.

[James Cartlidge]

My hon. Friend makes a powerful point. I will come on to how we would pay for it and the positon of the rail companies.

I want to reflect on the progress that has been made, because there is a lot of ongoing work and it was in our manifesto. To be fair to the Government, in October 2013 the Department for Transport published its fares and ticketing review, which proposed several schemes to make ticketing more flexible, including long-distance pricing, advance tickets on the day of sale and flexible part-time season tickets. The report stated that the plans could mean

“receiving a discount on season tickets for travelling three days rather than five, or for travelling earlier or later, avoiding the busiest trains, or there could even be an incentive for not travelling on certain days of the week”,

all of which I welcome.

Housing: Long-term Plan

Debate between Bob Stewart and James Cartlidge

Tuesday 9th February 2016 Commons Chamber

[James Cartlidge (South Suffolk) (Con)]

I declare my interest as a director of a shared ownership property portal and a mortgage broker. I want to make a couple of points about second-hand supply, which is often overlooked, and about estate regeneration, for which the Prime Minister has set out a very bold agenda. All the statistics show that there is a record low in the number of instructions to estate agents in the second-hand market. That is actually one of the main crises that we are facing, because the second-hand market forms such a large part of the market.

However, there is evidence that hope might be around the corner. We have recently heard a prediction from the National Landlords Association that 500,000 extra properties will come on to the market this year because of the buy-to-let tax changes and other changes that we are bringing in. I will put my neck on the line here and say that those measures represent the single most radical change that this Government have introduced so far, in the light of the wider impact that they will have. It is extraordinary to note, however, that just as it appears that those changes could have an impact, someone out there is going to go to court to try to stop them. I am of course talking about Cherie Blair. Looking at Blair Inc., we see that when Tony Blair finished as Prime Minister, he went round the world advising dodgy dictatorships, and that Cherie Blair is now going to lead a court action on behalf of, and defending, the rentiers. That is an interesting legacy indeed. It proves that champagne socialism is not yet dead.

On the regeneration agenda, I am proud that the Prime Minister has seized this important opportunity. He has set out plans to provide £140 million to transform 100 of our very worst estates. The theory behind estate regeneration is clear: it is that we can rebuild the very worst estates in the country and yet deliver a higher density of homes, thereby providing more housing for those who need it. That is an incredibly powerful agenda. Some will say, “Well, that all sounds very good in theory, but in practice those are people’s homes.” Developing those estates is not easy.

As the chairman of the all-party parliamentary group on housing, I have had the privilege of visiting two major estate regeneration schemes in recent weeks: Woodberry Down in Hackney, and Elephant Road at the Elephant and Castle. In both cases, I saw the practical reality on the ground: we have rebuilt terrible sink estates with higher density housing of better quality and with a better eco-rating. We should be seizing this agenda. There is a link between the changes that we are bringing in on buy to let and the estate regeneration agenda.

[Bob Stewart]

Given my hon. Friend’s great expertise on this matter and my lack of knowledge, could he enlighten me as to what happens to the people who live on a sink estate when it is brought down and rebuilt? What happens to those people while they are having their homes rebuilt?

[James Cartlidge]

This is very simple. My hon. Friend is an expert on decanting, I think, and the answer to his question is that we decant them. That is the technical term. I am sure that this will be interesting to him, and I am sure that I know what he keeps in his decanter. It is probably the same nationality as his wife. The process is difficult, however, because we do have to decant those people. One solution, which we saw at Woodberry Down, is to build the new housing and decant the people in stages. We saw another solution at the Elephant and Castle, which was difficult but there was no alternative. It was to allow the estate to run down and become empty over time. That is the toughest part of the process.

The details of regeneration are incredibly difficult, as my hon. Friend the Housing Minister will know. However, the aim—which is the same as that of our policy on buy to let—is a one-nation Conservative housing policy that is about revitalising our worst estates and extending opportunities to first-time buyers, and if that hits some of those buy-to-let landlords, all I can say is that I wish them good luck in court but I believe we need a housing policy that is on the side of those who aspire to own their own home.