Middle East: Economic Update

Dan Carden Excerpts
Tuesday 24th March 2026

(4 months, 3 weeks ago)

Commons Chamber
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Rachel Reeves Portrait Rachel Reeves
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It is because of those concerns and not wanting to put any upward pressure on borrowing costs or inflation that we are looking at what targeted support can be offered, rather than the blanket support we saw the previous time energy bills went up. The Bank of England offered its assessment on the potential impacts on inflation, but as the Governor of the Bank of England has also said, the upward pressure on inflation because of the conflict in the middle east is tempered somewhat by the action that I took in my Budget last year, which reduces inflation by between 0.4 and 0.5 percentage points, taking off some of that upward pressure on inflation.

Dan Carden Portrait Dan Carden (Liverpool Walton) (Lab)
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I thank the Chancellor for her statement. May I ask her to do something for a specific group of people? Constituents who have to rent their home in the private rented market, especially those in more deprived communities like mine, will see their energy bills go up, but their biggest outgoing each month will still be their rent, which all too often is exploitative in areas like mine. We had rent controls in this country from the first world war up until the dying days of Margaret Thatcher’s Government. What can she do, thinking outside the box, to tackle this issue?

Rachel Reeves Portrait Rachel Reeves
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I recognise that in my hon. Friend’s constituency, like in mine and many others, more people are in private rented accommodation than own their own home. One reason for introducing the Renters Rights Act 2025, which was opposed by the Conservative party, is to give people greater certainty, to enable them to challenge increases in their rents, and to give them greater rights over eviction, which was done to help his and all of our constituents.

Oral Answers to Questions

Dan Carden Excerpts
Tuesday 19th March 2024

(2 years, 4 months ago)

Commons Chamber
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Paul Blomfield Portrait Paul Blomfield (Sheffield Central) (Lab)
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3. What recent assessment he has made of the potential impact of his tax policies on living standards.

Dan Carden Portrait Dan Carden (Liverpool, Walton) (Lab)
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6. What recent assessment he has made of the potential impact of his tax policies on living standards.

Rachel Hopkins Portrait Rachel Hopkins (Luton South) (Lab)
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12. What recent assessment he has made of the potential impact of his tax policies on living standards.

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Nigel Huddleston Portrait Nigel Huddleston
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I am sure that if the hon. Gentleman looks carefully, he will see that the Government have demonstrated their commitment to supporting the most vulnerable in society. He will also have heard my hon. Friend the Member for North East Bedfordshire (Richard Fuller) explain the circumstances as to why we have higher taxes than we would desire. If the hon. Gentleman is telling me that Labour party policy is to change the thresholds, perhaps he can have that conversation with the shadow Chancellor, who can explain how she would pay for that.

Dan Carden Portrait Dan Carden
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The OBR has said that this will be the worst Parliament on record for living standards and the only one in which they have fallen: people are poorer after 14 years of this Government. We do not need fiscal tweaks; this economy needs renewal. It needs to bring in investment on a major scale, and a new age of education, training and employment in the real economy. My constituents cannot afford to wait while the Tory party looks for its polling fortunes to change. Have we not now reached the point where the best thing for the economy is a general election?

Nigel Huddleston Portrait Nigel Huddleston
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I completely disagree with the hon. Gentleman’s explanation. Not only will I repeat that our constituents completely understand the difficult global circumstances, with the pandemic and the cost of living challenges following the invasion of Ukraine, but I can say that we have grown faster since 2010 than many other major economies, and the IMF forecasts that we will grow faster than Germany, France, Italy and Japan. In the year to the third quarter of 2023, real household disposable income per person was around £1,100 higher than the Office for Budget Responsibility expected in its spring Budget 2023 forecast. We have turned a corner, and the best thing to do is to stick with the Conservatives.

Budget Resolutions

Dan Carden Excerpts
Tuesday 12th March 2024

(2 years, 5 months ago)

Commons Chamber
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Dan Carden Portrait Dan Carden (Liverpool, Walton) (Lab)
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It is important to note that, had pre-2008 levels of growth been maintained, GDP per head would be 39% higher than it is today. People are poorer, and so is the state. We are on a long road of stagnation, decline and diminished capacity. It is a disaster for our constituents.

It is easy to tell a story that this is simply symbolic of the dying days of one political party in government, and that it will all be changed by a new Government, but that new Government need a sense of direction and a sense of purpose built around national renewal in a divided and disillusioned country. New management alone will not cut it. We need a transformation that goes well beyond fiscal and monetary tweaks, and that moves into the real economy. A transformation that asks why living standards are declining when employment is at record levels.

The dignity of work has to be at the centre of our agenda. The scourge of in-work poverty bears witness to the failure of the economic model that has now been in place for almost half a century. Full employment, education and training are vital but, without an industrial strategy, it alone will not get to the heart of the matter.

National renewal requires what every Government since Margaret Thatcher’s Government have found unthinkable—an industrial strategy that engages the energy of the public sector and the private sector in partnership with the people of this country. We must think the unthinkable, look beyond finance and the City of London, and look out to the country. We must think about regional banks, vocational colleges and a form of corporate governance that can sustain a partnership between place, workers and capital. The debacle of the Post Office this year is indicative, not anomalous. The model of managerial sovereignty without accountability has well and truly failed. It has left public services, like our NHS, broken, with millions suffering on waiting lists. It has left local government bankrupt and unable to do its important job. Economy, society and Government are rudderless, in decline and diminished.

The British people are capable of inventing, designing and making their own future. We must not be afraid of change and the renewal of our economy, society and politics. That was the task of a Labour Government in 1945, 1964 and 1997. In each of those Governments, Labour won working-class communities to its cause. Those communities have endured neglect, abandonment and contempt for too long. They are not the source of decline, but the key to renewal. They have been despised and patronised, and we cannot understand the Brexit vote or the election of this Tory Government without understanding their disdain or their rejection of the political class now. Labour must put their needs—a decent wage, a decent pension, safe and secure communities—ahead of any progressive demands that often dominate the politics of the left. It is the vocation of Labour, as a party of government and as a movement, to do that. It is vital that Labour rediscovers its own vocation, as well as the virtues of vocation in the economy. The stakes are high indeed.

Finance Bill (First sitting)

Dan Carden Excerpts
James Murray Portrait James Murray
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I look forward not only to moving on from the current drama in our wider politics, but also to the Minister’s response on the specific point about pantomime productions and claims for tax reliefs.

Finally, having led for the Opposition on five Finance Bills, I know all too well that there can be complexity and indeed unintended consequences when new changes are made to tax relief regimes. Will the Minister therefore again explain what he and HMRC are doing to make sure the appropriate guidance is issued, and support offered, alongside the changes to the rules, to support claimants in navigating them?

On clause 5 on orchestras, the Government have sought to clarify rules around cultural reliefs, again following a two-year extension to the higher rate for orchestra tax relief that we mentioned earlier, which was issued in October 2021 to help the sector recover from the pandemic. Clause 5 seeks to clarify the exclusion of capital expenditure; clarify the exclusion of costs incidental to production; and amend the time limit for concert series elections to either the date of the first concert in the series or the date of the claim.

Although seeking to provide clarity in the operation of creative reliefs is welcome, I am concerned that there is still a lack of clarity on how the rules should be interpreted, and I again ask the Minister to use this opportunity to put some clarification on record. The lack of clarity was brought to my attention by my hon. Friend the Member for Worsley and Eccles South (Barbara Keeley), who is a great champion for the UK’s world-class orchestras. On Second Reading, she made the point that:

“International touring is vital to the survival of many orchestras and makes up a fifth of earned income”

and that

“it boosts cultural exports and enhances the UK’s place on the world stage.”—[Official Report, 13 December 2023; Vol. 742, c. 931.]

She also referred to changes in eligibility for orchestra tax relief that required 10% of expenditure to be on goods or services that are used or consumed in the UK.

I understand the reasoning behind that, as the Minister set it out, but I also understand from my hon. Friend the Member for Worsley and Eccles South that the Association of British Orchestras believes that that means there is a lack of clarity about what orchestras will be able to claim. I am sure the Minister will agree that clarity is crucial for a successful tax system and I would therefore be grateful if the Minister could provide clarity today about how changing eligibility criteria will affect the claims that touring orchestras make.

In clause 6, the Government have again sought to clarify rules, following the higher rate that was granted for museums and galleries exhibition tax relief in October 2021. Galleries and museums are a critical part of our creative sector and of the enjoyment and fulfilment of so many people across the country. The clause seeks to provide clarity on two areas in relation to the relief: namely, the exclusion of costs incidental to production and the requirement for there to be physical admission to exhibitions for the relief to apply. The Opposition will not oppose either of those changes, but I ask the Minister what he is doing to work with key industry bodies, including the Museums Association, to ensure that the appropriate guidance is in place for museums and galleries, large and small, to be able to navigate these changes without confusion.

Clause 7 introduces new administrative measures for companies claiming creative tax reliefs. Claimants will now be required to complete and submit a new online information form. This will include the various new expenditure credits that we discussed in the previous clauses. We understand that these changes seek to streamline the process of making a claim, reduce the administrative burden on HMRC and make it easier to tackle abuse.

Of course, the Opposition support the principle of all those aims. However, as the clause involves the mandatory use of a new online information form from 1 April 2024, I ask the Minister to confirm whether he is confident that the digital systems at HMRC are ready for that to operate from that date. I believe that that is a pertinent question, given the shocking record of the Government in overseeing the implementation of the Making Tax Digital strategy since it was adopted almost a decade ago. Last summer, HMRC admitted that its ageing legacy IT systems meant that HMRC had

“underestimated the scale and complexity”

of delivering Making Tax Digital.

According to the National Audit Office, Ministers set unrealistic ambitions and timescales for implementing MTD. From the very start, HMRC rated MTD as a high-risk programme, and dates were rushed without realistic appraisal. The Financial Secretary to the Treasury is the fifth incumbent of the role since September 2021, and there is no doubt that the churn of Ministers has contributed to the lack of direction in policymaking for digital strategy on tax affairs. I would therefore be grateful if the Minister could outline what steps he has taken to give him confidence in HMRC’s ability to make sure the new online forms for the creative reliefs are operational on time and on budget. That is important for the effective administration of creative reliefs. More widely, it is important that HMRC is equipped with the tools it needs to provide a high-quality online service that individual taxpayers and businesses should expect the Government to deliver.

Dan Carden Portrait Dan Carden (Liverpool, Walton) (Lab)
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It is a pleasure to speak with you in the Chair, Mr Paisley; I am delighted to serve on the Committee.

I just wanted to raise an issue that has come to my attention in relation to the Liverpool Philharmonic Hall. The Liverpool Philharmonic Hall is the home of our orchestra in Liverpool. It has a unique model whereby the orchestra owns the hall, and the hall is also rented out for external events. That is unique compared with any other set-up in the country. I understand that, in clause 5, the Government are proposing changes to the detail of how creative tax reliefs are claimed. They are proposing that external events with connected companies —as might happen in the case of the Liverpool Philharmonic—will not be eligible for those tax reliefs. That is the model that the Liverpool Philharmonic has relied on and that has made it such a great success. I wish to use this opportunity to ask the Minister to look again and to seek assurances that the minor changes proposed in clause 5 will not affect the Liverpool Philharmonic Orchestra negatively.

Debbie Abrahams Portrait Debbie Abrahams (Oldham East and Saddleworth) (Lab)
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It is a pleasure to serve under your chairmanship, Mr Paisley. I have a couple of quick questions for the Minister. First, on clause 3 and the assessment that the Government have undertaken of its economic impact on the sector, particularly in relation to the current TV ads slump, how much will it offset that and what timescales are the Government considering? On clause 4 and theatre production companies, is there a size limit for the companies that the measures will relate to?

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Drew Hendry Portrait Drew Hendry
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The cost of living crisis is gripping families across the nations of the United Kingdom. They are struggling with rent, with mortgages, with food costs and with energy bills. When we come to clause 14, though the abolition of the lifetime allowance is necessary for certain professionals, including doctors, it benefits about as many bankers as healthcare workers. There were better ways for the Government to tackle this problem. What other options were looked at to avoid the undue rewarding of those who it was perhaps less necessary to include than healthcare workers?

Dan Carden Portrait Dan Carden
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The Minister said that 15,000 will stay in the workforce as a result of these changes. However, the changes have been criticised for actually complicating the pension system. Will he be reviewing the numbers that stay in professions such as healthcare? If 15,000 stay in the workforce, how many others are simply benefiting in other sectors such as banking?

Nigel Huddleston Portrait Nigel Huddleston
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I thank hon. Members for their comments. We seem to have had a bit of a U-turn from some Opposition Members and some political parties. There was considerable support for these measures across multiple sectors. These measures will benefit swathes of the public sector. I have already given quotes and there are plenty more from swathes of the medical and health service industry. The Royal College of Surgeons, for example, found that 68% of consultant surgeons were considering early retirement because of the old pensions rules. I do not know what more evidence hon. Members need to be convinced that this is a proper and appropriate move.

Dan Carden Portrait Dan Carden
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None of us disputes that this is a positive move for the public sector and for certain sectors of the economy, but perhaps the Minister could answer the question about those who perhaps are not so worthy.

Nigel Huddleston Portrait Nigel Huddleston
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The hon. Member is being rather selective. Swathes of the public sector will benefit: headteachers, police chiefs, clinicians, senior armed forces personnel, air traffic controllers, prison governors, senior government scientists, government-employed vets and so on. It is a point of principle that the tax system does not generally distinguish between occupations. To the point of the hon. Gentleman and others about timeliness, this is an issue that we needed to deal with immediately—not in three or five years’ time. There was an appropriate measure, and we took it.

It goes without saying that some people have benefited from similar schemes in the past. The Leader of the Opposition had a unique deal from his time as Director of Public Prosecutions, which allowed him to avoid tax on his savings. It is only appropriate that, in order to make sure that we retain people in the workforce and encourage people to come back to the workforce, we make these changes and make them in a timely manner. That is the broader point of the policy area, as opposed to the specifics of these changes. They have been subject to considerable consultation.

The hon. Member for Ealing North mentioned that there are about 100 pages of legislation. That is true, but let us be very clear: this is a clear and transparent simplification that has been welcomed by large swathes of the public sector. The vast majority of the 100 pages of legislation he talked about remove references and concepts associated with the lifetime allowance. When we make changes, we need to remove references, and that was the bulk of the work.

As I said, this has been the result of extensive consultation. The Government have been consistently clear since the spring Budget of 2023 that the abolition of the lifetime allowance will be effective from April 2024. We have set out the timelines very clearly. We continued to work closely with industry, and HMRC will support the implementation of these changes. As I said, we have listened to stakeholder feedback and confirmed that we would not proceed with the previously proposed changes, for example to pension commencement lump sums and small lump sums. Once the changes have been made, they represent a significant saving for pensions.

Unlike the lifetime allowance excess lump sum, which is charged at 55%, the pension commencement excess lump sum is charged at the member’s marginal rate. So the pension commencement excess lump sum is only paid in connection with the commencement of a pension. The pension commencement excess lump sum allows individuals entitled to receive more of their pension on commencement as a lump sum than is provided for by the standard pension commencement lump sum. As I said, overall, these changes are welcomed and are a simplification. I therefore commend the clause to the Committee.

Question put and agreed to.

Clause 14 accordingly ordered to stand part of the Bill.

Schedule 9 agreed to.

Clause 15

MPs’ pension scheme etc: rectification of discrimination

Question proposed, That the clause stand part of the Bill.

The Growth Plan

Dan Carden Excerpts
Friday 23rd September 2022

(3 years, 10 months ago)

Commons Chamber
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Kwasi Kwarteng Portrait Kwasi Kwarteng
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The investment zones and our ability to incentivise investment will help a whole swathe of communities across the UK. The reversal of the national insurance increase and bringing forward the 1p reduction will also help thousands and thousands, if not millions, of our constituents.

Dan Carden Portrait Dan Carden (Liverpool, Walton) (Lab)
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The UK is already a deregulated, low-tax economy with the most draconian workers’ rights in the whole of Europe, in which the richest are well rewarded; it would be bizarre if it were not after 12 years of a Tory Government. However, that has not led to a transformation of skills and training across the workforce; it has not led to rising wages, which are still lower in real terms than they were before 2010; it has not lifted children out of poverty; and it has left us ranking 150th in the world for the investment that the Tories always talk about. Let me ask the Chancellor a very specific question. Will he accept that there is no correlation whatsoever between tax burdens and prosperity across high-income countries?

Kwasi Kwarteng Portrait Kwasi Kwarteng
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I do not accept the hon. Gentleman’s proposition that the level of tax is immaterial, I do not believe that we can just tax our way to prosperity in the way that the socialists claim, and I absolutely reject the idea that tax does not incentivise economic activity.

Oral Answers to Questions

Dan Carden Excerpts
Tuesday 28th June 2022

(4 years, 1 month ago)

Commons Chamber
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Rishi Sunak Portrait Rishi Sunak
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My hon. Friend is without doubt the House’s expert on that matter. I am pleased that the Government have listened to him. I still have the brochure he first gave me with the marvellous pictures of the custom self-build—in Switzerland, I think. There is a £1.8 billion fund, I believe, within the home building programme, and a good chunk of that will go to support exactly what he said: more homes, quicker homes and cheaper homes for all our citizens.

Dan Carden Portrait Dan Carden (Liverpool, Walton) (Lab)
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7. What recent fiscal steps he has taken to help reduce economic inequality.

John Glen Portrait The Economic Secretary to the Treasury (John Glen)
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The Government understand that millions of households across the UK are struggling to make their income stretch to cover the rising cost of living. As part of the £15 billion support package being provided by the Government, almost all the 8 million most vulnerable households across the UK will receive support of at least £1,200 this year, including a new, one-off £650 cost of living payment.

Dan Carden Portrait Dan Carden
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The Economic Secretary will know that Her Majesty’s Revenue and Customs payroll data shows that the pay of the top 1% rose three-and-a-half times faster than the pay of those in the bottom 10%, whose meagre pay increases have already been wiped out by inflation and price rises. When we look at wealth, during one year of the pandemic each UK billionaire saw their wealth grow by £630 million on average. While the rich get richer, the working-class communities I represent get poorer. When will the Treasury look at raising taxes on the highest incomes and taxing the wealth of billionaires in order to invest in communities and UK infrastructure?

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Simon Clarke Portrait The Chief Secretary to the Treasury (Mr Simon Clarke)
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My hon. Friend is a fantastic champion for his region and his support for a freeport on the Humber has been noted across Government. We are of course investing in our levelling-up programme, which has a direct bearing on areas such as the Humber. Crucially, we want to advance devolution within England to allow areas such as his to reap the full rewards and take full control of this exciting opportunity.

Dan Carden Portrait Dan Carden (Liverpool, Walton) (Lab)
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T4. Recently, it was revealed that Her Majesty’s Revenue and Customs is failing to use the third-party data information that we get through international agreements to investigate how much tax is being evaded through offshore assets. Given that £850 billion is held offshore, with two thirds of it stashed in known tax havens, either Ministers are content for the super-rich to evade paying their fair share in the knowledge that their offshore wealth is not being systematically checked, or they will direct HMRC to use this reporting data, as is done in the US and Denmark, to uncover tax evaders. Which is it?

Lucy Frazer Portrait The Financial Secretary to the Treasury (Lucy Frazer)
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I am proud that HMRC is a leader in tax transparency, has a number of double tax treaties and co-operates with a large number of countries and international organisations to share tax information to ensure that people pay their fair share.

Tackling Short-term and Long-term Cost of Living Increases

Dan Carden Excerpts
Tuesday 17th May 2022

(4 years, 2 months ago)

Commons Chamber
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Rishi Sunak Portrait Rishi Sunak
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I think the hon. Lady said unemployment is rising. No—it just fell this morning to the lowest level in almost half a century. I will come on to our growth figures in just a second, but we have had a strong recovery and are forecast to continue growing strongly relative to peers.

We do need to do more, and that is why the Queen’s Speech includes measures to boost our national infrastructure, to level up, to back financial services—one of our biggest and most successful sectors, employing millions of people across the country—to cut red tape, to use our new Brexit freedoms, to back British businesses, to reform higher education and to strengthen our energy security. We on the Conservative side know that over the longer term, the best way to create growth is to have an economy where businesses can invest more, train more and innovate more.

Dan Carden Portrait Dan Carden (Liverpool, Walton) (Lab)
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While the Chancellor is still considering a windfall tax, I want to tell him about one constituent of mine who got in touch: a 62-year-old woman in Walton, who decided to disconnect from British Gas for fear of a bill coming through her door in a few months’ time.

Oral Answers to Questions

Dan Carden Excerpts
Tuesday 17th May 2022

(4 years, 2 months ago)

Commons Chamber
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Helen Whately Portrait Helen Whately
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My hon. Friend is absolutely right about the importance of getting the money into people’s pockets fast, which is why the first support payment is through the council tax system. I know that councils are working hard to get payments to people, whether they do or do not have direct debits. The Treasury is working closely with the Department for Levelling Up, Housing and Communities to support local authorities with delivery.

Dan Carden Portrait Dan Carden (Liverpool, Walton) (Lab)
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7. What recent steps he has taken to ensure fairness in the application of the tax system.

Lucy Frazer Portrait The Financial Secretary to the Treasury (Lucy Frazer)
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The Government are committed to ensuring a tax system that is fair and simple. I will give three examples: first, we have equalised the national insurance and income tax starting thresholds; secondly, our work towards OECD pillars 1 and 2 will help to ensure that multinational businesses pay their fair share; and thirdly, we are tackling avoidance and evasion to ensure that everyone pays the right amount of tax at the right time.

Dan Carden Portrait Dan Carden
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I am grateful to the Minister for that answer. Liverpool, Walton ranks as the most deprived community in the whole of England. I am used to constituents contacting my office unable to afford their bills and to survive on their own incomes. What is new is that local independent businesses are now telling me that they are going under. At the heart of the Liverpool economy is hospitality and the visitor economy. Locally run and owned restaurants and cafés are now facing apocalyptic price rises. The VAT on soft drinks and food consumed on premises, and hot beverages and food taken away, has risen back to 20%—it was 5% and then 12.5% during the pandemic. What will Ministers do to save local independent businesses through the tax system?

Lucy Frazer Portrait Lucy Frazer
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It is important that we support local businesses, and that is exactly what the Government have done. The hon. Member will know about the business rates support—amounting to £7 billion of support to businesses—that we provided at the last Budget, including £1.7 billion for the hospitality industry through a 50% rebate on business rates. For small businesses, we also increased the employment allowance by £1,000. That is a package of support for local businesses in his area and others across the country.

Tackling Fraud and Preventing Government Waste

Dan Carden Excerpts
Tuesday 1st February 2022

(4 years, 6 months ago)

Commons Chamber
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Dan Carden Portrait Dan Carden (Liverpool, Walton) (Lab)
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It is a pleasure to follow the hon. Member for Barrow and Furness (Simon Fell). He made a worthy contribution, and I did not disagree with anything that he put forward, but from listening to him and the Paymaster General, one would not think that Lord Agnew, the anti-fraud Minister, had resigned in the past few days, saying that there was “zippo” detail from Treasury Ministers or officials on how they would deal with covid fraud, and that there was “arrogance, indolence and ignorance” when it came to the Government’s fraud agenda.

A Minister resigning on principle is a rare thing to see in politics these days. I congratulate Lord Agnew on standing up to “smash some crockery”, as he put it, and make a noise about all this. Thousands of companies that were not even trading were able to get access to bounce back loans. According to Lord Agnew, the Government will lose £29 billion a year to fraud.

The schemes that we are talking about had loopholes and openness to fraud built in. I sit on the Public Accounts Committee, and HMRC and others have come before us. Even since becoming aware of the numbers and the scale of the fraud, with £4.3 billion being written off on some schemes, HMRC and Treasury Ministers do not seem to have the appetite to go after it—and that is without even mentioning the billions handed over to Tory friends and donors over PPE contracts or the fast lane that the Government were operating, which was found to be unlawful.

The Chancellor has a very savvy image and the Government’s messaging on keeping the public finances in order is very tight, but the reality is that before the resignation of Lord Agnew, the Government were planning to drop the public register of foreign ownership. They rejected proposals and did not plan to bring them forward in an economic crime Bill. They ignored repeated warnings from the fraud advisory panel on the serious weaknesses in business loan schemes.

This is about more than the figures—the billions and millions that have been handed over to Tory friends and donors and lost through fraud. We have had the Panama papers, the Paradise papers and the Pandora papers. What we have learned from the past few months, whether from the Downing Street parties or from the lenient attitude to public money, is that there is a belief in this place that there is one rule for those at the top—they can party and break the rules, and if they have money it usually means access to more money and that the rules can be bent.

The importance of all this is that it goes to the heart of the kind of country we are. I think the public know that there is a stink. They deserve much better.

Charter for Budget Responsibility and Welfare Cap

Dan Carden Excerpts
Monday 10th January 2022

(4 years, 7 months ago)

Commons Chamber
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Dan Carden Portrait Dan Carden (Liverpool, Walton) (Lab)
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I will be brief, Madam Deputy Speaker. This debate seems to be the definition of a pointless exercise. While there is total economic uncertainty, we are setting out fiscal rules that, if the Government break them, they will change next year. I am here to put on record and speak in opposition to the welfare cap. I represent some of the most deprived communities in England, and the welfare cap is simply a continuation of a policy that is designed to appease those intent on demonising the least well-off. It is political weaponry of the worst order. People are struggling with day-to-day costs, and there is a cost of living crisis that soaring energy prices and inflation threaten to make much worse—this year, next year and the year after.

What possible sense can there be in wasting time here and now, putting arbitrary caps on the winter fuel payment, on cold weather payments, on carers allowance, on support for the disabled, on in-work universal credit or on support for people’s housing costs? It is nonsense. Even the Government’s own organisation, the OBR, has questioned the welfare cap’s usefulness.

The Government have broken the current cap twice in recent years, so they are left continually raising the cap and changing its scope, for no other reason than it is not prudent, and it does not work. If the Government wanted to bring down the nation’s welfare bill, they would focus relentlessly on tackling the causes of the cost of living crisis; by tackling insecure, low-paid work and boosting wages; by controlling extortionate rents; and by ending the scandal of rip-off energy bills that only fuel corporate profits. Instead they choose to waste time playing games and posturing.

The people I represent need a social security system that supports and enables them, not one that punishes them and strips away their dignity. In these difficult, uncertain times, the Government are not being serious by continuing with this unworkable, arbitrary cap.