Finance Bill

Charlotte Nichols Excerpts

Report stage & Report stage: House of Commons & Report: 1st sitting & Report: 1st sitting: House of Commons
Wednesday 1st July 2020 Commons Chamber

[Ben Everitt]

The hon. Member has perhaps read my speech. That postponement is quite problematic, and in fact I am sure I am far from alone on the Benches either side of this Chamber when I say that I wish it were not postponed, but were cancelled.

However, we can learn lessons. I welcome the commitment to review the implementation of IR35 in the public sector because, frankly, this is about the implementation of such schemes. The hon. Member for Ealing Central and Acton (Dr Huq) noted some similarities between the loan charge and IR35. I think the biggest similarity is the fact that both have been implemented in a way that one could describe as a sledgehammer to crack a nut. These nuts are important to our economy, and I hope that we can learn some lessons and implement such schemes in a way that captures the essence of what we want to do, which is obviously to crack down on elaborate and excessive tax avoidance and, indeed, in the words of my right hon. Friend the Member for Gainsborough (Sir Edward Leigh), simplify our tax system and make it more efficient and more productive, but we must have an equitable and fair system—a system that empowers growth, but ensures that we benefit from a buoyant economy.

The ability of a flexible workforce to assist our businesses, large and small, across the economy in this time of particular economic turmoil will be crucial to our recovery, and it is one that we must not curtail. We must not risk squandering the competitive advantage that our British spirit—our consultancy sector, our contractors, our professional services—gives to the UK economy as we look to bounce back or, in the words of a Prime Minister, bounce back better, bounce back faster and bounce back greener. Many contractors and consultants will be watching this debate today and looking to the Treasury Bench for some hope, and some sign that they are not forgotten and that this Government recognise them as part of the solution to our economic woes, not part of the problem we face.

[Charlotte Nichols (Warrington North) (Lab)]

Our economy stands on the brink of catastrophe. The coronavirus job retention scheme has been, there is no doubt, an unprecedented package of support, which I welcomed as a vital lifeline for employers and sectors across our economy. We have seen already, however, how the failure to attach conditionality to the scheme meant that too many employers have used it as a subsidy towards the notice pay of staff they were laying off, rather than to preserve jobs. We have seen huge job losses announced in sectors across the economy, and many more businesses are vulnerable, particularly in catering and hospitality, aviation, manufacturing and the creative sectors.

The approach from the Government has been one size fits all, but more bespoke support must be forthcoming to ensure the viability of businesses and sectors that have been hardest hit by this crisis and by social distancing measures that may be in place for some considerable time. I ask the Government also to look at early warning systems, so that employers can access targeted support before sliding into administration, with the Government taking an equity stake, where necessary, to protect the taxpayer interest.

I turned 18 as the 2008 economic crash started to bite. I know what it is like to be totally despondent, looking at opportunities that generations before us took for granted, feeling that they will never be in our reach, yet the anxiety I felt has nothing on what young people in Warrington North and across the country will be feeling right now, given the scale of our current crisis. They need hope and cause for optimism.

Further to the measures outlined in the Bill, I urge the Government to develop a scheme based on the future jobs fund to support young unemployed people into work and give them the opportunity to establish their careers in their chosen sectors. Decades of research has shown the scarring effect of youth unemployment, which can be a lifetime penalty for young people, in terms of subsequent lower pay, higher unemployment and reduced life chances. If we do not get this right, and get it right now, the impacts will be felt for decades to come.