European Union (Withdrawal) Bill

Debate between Chuka Umunna and Chris Leslie

Committee: 5th sitting: House of Commons
Wednesday 6th December 2017 Commons Chamber

[Mr Leslie]

I would like to make another point before I give way again.

This brings in the wider theme about sidelining Parliament and creating a sense that we should not have proper scrutiny of these issues. The new clause is about scrutiny, as is the debate going on in the Brexit Select Committee. It is also about the fact that sovereignty lies not in the hands of Ministers but in the hands of Parliament as the representatives of the people, and we need to do our job. The massive land grab of legislation, under the Henry VIII clauses in the Bill, is not acceptable. The cloak and dagger pretence about the impact assessments is not acceptable. Also, the idea that the divorce bill will be somehow covered over in some grubby hidden backroom negotiations, itemising only the textual liabilities rather than showing us the pounds, shillings and pence figures, is not acceptable.

[Chuka Umunna (Streatham) (Lab)]

The new clause goes to the heart of the argument made for the UK leaving the European Union: this House would take back control. It was done in the name of parliamentary sovereignty. Does my hon. Friend not find it curious, therefore, that the Members who argued in the name of parliamentary sovereignty that we should leave—I see the right hon. Member for Wokingham (John Redwood) in his place, and the hon. Member for Gainsborough (Sir Edward Leigh) and others—do not support his new clause? I find it remarkable. That this House should approve any divorce bill would be the ultimate reassertion of parliamentary sovereignty.

[Mr Leslie]

I see the right hon. Member for Wokingham (John Redwood) nodding his head, so he agrees. He is an honourable gentleman, because he does believe in parliamentary sovereignty. Many hon. Members agree that the new clause is not about whether we believe in the single market or the customs union; it simply states that when the withdrawal agreement comes to fruition there needs to be a specific vote on the money, because it will come from the taxes collected by the Exchequer—by the Government—and authorised by Parliament. There needs to be authority. I want to see hon. Members who advocated the whole process, on both sides, having to put their mouth where their money is and go through the Lobbies to state an opinion about the amount of money involved.

European Union (Notification of Withdrawal) Bill

Debate between Chuka Umunna and Chris Leslie

Committee: 2nd sitting: House of Commons
Tuesday 7th February 2017 Commons Chamber

[Mr Umunna]

I think I detected a hint of support for the amendment in the remarks that the right hon. Gentleman has just made.

[Chris Leslie]

He’s melting!

[Mr Umunna]

The right hon. Gentleman seems to have accepted—I hear the word “melting” behind me—the premise behind the amendment. I very much look forward to his joining us in the Division Lobby.

My party established the national health service in the face of opposition from the right hon. Gentleman’s party. We have a far better record of providing the funding and support to our NHS. We need no lectures or demands from his party, which is in government and throwing it all into chaos.

I finish by saying this to the right hon. Gentleman. His Prime Minister goes around saying, “Brexit means Brexit”. If Brexit means anything, it is that he and all his colleagues who campaigned for Vote Leave need to deliver on their promise to put £350 million extra per week into the NHS. I look forward to seeing the right hon. Gentleman in the Division Lobby tomorrow.

Finance (No. 3) Bill

Debate between Chuka Umunna and Chris Leslie

Tuesday 5th July 2011 Commons Chamber

[Chris Leslie]

We now come to our general debate on taxation in respect of the Finance Bill. Clearly, one of the major omissions from the Bill is a repeat of the bank payroll levy or bonus tax that the previous Labour Administration implemented in 2009. It is not only a matter of fairness that bankers should pay some of their substantial bonuses to support people far less fortunate than them and to rebuild public trust; it makes economic sense too. I hope that our amendment 13 will persuade the Government of the merits of a review of how the bank bonus arrangement could be incorporated into the bank levy. A fair tax on bank bonuses would help to get people off the dole and into work, and it is the best way to get the deficit down and stop Britain’s talent going to waste.

Youth unemployment rose sharply in the recession, as we know, but a year ago it was starting to fall steadily thanks in part to the youth jobs programme and the future jobs fund advocated by the previous Administration. One of the first things that the current Chancellor of the Exchequer did was to scrap that successful programme. Before the election the leader of the Liberal Democrats, now the Deputy Prime Minister, said:

“Parents used to worry about whether their children could get onto the housing ladder, now the concern has spread to whether they can even get a job…We must provide a lifeboat to this lost generation.”

Well, he and the Prime Minister have sunk that lifeboat.

In the 1980s, youth unemployment continued to rise for four years after the recession was over, and whole communities were scarred as a result. Many of the effects can still be seen and felt in places across the country. That is why we believe we need to act urgently to prevent disastrous mistakes from being repeated. There are now 31,000 more young people unemployed than there were last summer, and one in five 16 to 24-year-olds is now out of work. Although there has been a welcome fall in unemployment in the past two months, the claimant count is still rising, vacancies are down and job creation has slowed in the six months since the spending review. Unemployment is set to be 200,000 higher over the coming years than was expected just a few months ago, and the Office for Budget Responsibility keeps revising the figure upwards, just as it keeps revising the growth figures downwards.

We believe that a repeat of the bank bonus tax could be used to create more than 100,000 jobs, build 25,000 affordable homes, rescue construction apprenticeships and of course boost investment in businesses. Putting young people on the dole is not just a waste of talent but a waste of money, and failing to get Britain back to work fast enough is helping to push the benefits bill and welfare costs up by more than £12 billion, or more than £500 a household. It is not rocket science—more young people out of work means more money spent on benefits and less money coming in through tax receipts to pay down the deficit.

Considering how the future jobs fund and the bank bonus levy worked, we believe that sufficient revenue could be raised to invest the money in creating 90,000 good jobs to get young people into work and ensure that we do not make the mistakes of the past. It could also be used to build 25,000 homes to support people as they get back to work. Our plan could generate more than 20,000 jobs in that sector and save several times more jobs in the supply chain and as many as 1,500 construction apprenticeships. That would leave sufficient resources to boost the regional growth fund by £200 million, to support companies that want to start projects that will create more jobs, meaning more help for small businesses in regions up and down our country.

Our amendment is pretty straightforward and, I hope, fairly unobjectionable. It asks the Chancellor of the Exchequer to review the possibility of incorporating a bank payroll tax within the bank levy, and to publish within six months of the passing of the Finance Bill a report on how the additional revenue would be used.

[Mr Chuka Umunna (Streatham) (Lab)]

One of the objections that has been raised to reintroducing the bank bonus tax is that it would lead to a flight of talent abroad. We have often been told that a number of people would go from the City to Switzerland, for example. Has my hon. Friend noticed that in 2011, just under 400 of the 330,000 people working in banking and financial services in the City went to Switzerland, and that the year before the number going there fell by 7%?

[Chris Leslie]

An excellent statistic from my hon. Friend. We are often told that the reason we cannot take any action is that complex descriptor “regulatory arbitrage”. It is a term that belies what it actually means—people fleeing the country, usually because they want to pay lower taxes. Actually, there are good reasons for the financial services sector to stay and thrive in this country, and they are not just about tax and regulation. They are not always financial reasons. We have Greenwich mean time, and we have a great rule of law that can ensure that businesses succeed and thrive. I believe that that is ample for our financial services sector to be rejuvenated and sustainable. The talk of “regulatory arbitrage” is in many cases the last refuge of the scoundrel.

The Government are letting the banks off the hook. They are taking a light-touch approach on taxing the banks by failing to repeat the banker bonus tax that the previous Labour Government levied, which brought in £3.5 billion.

--- Later in debate ---

[Chris Leslie]

I know that the Government have such a close relationship with the IMF that they take their policy lead from it on almost every issue, but I am sure that they can think for themselves on this issue. Given that there was discussion at the G20 about exploring many of those things, I would have thought that the Government ought to keep the issue on the table and under review because it has potential, as most hon. Members seem to recognise.

[Mr Umunna]

I think the Minister was seeking to raise the IMF earlier, but the IMF has argued—I am sure that my hon. Friend knows this—that the Government should be looking to raise a lot more from the bank levy than they are currently.

[Chris Leslie]

Indeed, and there are ways the bank levy could be improved. It might be appropriate at this point to refer to the Government amendments 32 to 50, which are technical amendments. It would be useful if the Minister said whether the bank levy’s yield will be affected by those technical changes. Generally speaking, although the bank levy is a fine idea in theory, the way the Government are implementing it in practice is inadequate. It has been designed around a fixed yield of £2.5 billion to £2.6 billion, but when the Treasury originally published its design for the bank levy last June the banks complained that it would cost them £3.9 billion. The Chancellor listened to their complaints and, as a result, watered down his original plans. Indeed, he gave the banks a £20 billion tax-free allowance before they start paying the bank levy, thus bringing the yield back down to £2.5 billion to £2.6 billion.