Finance Bill

Debate between David Davis and Stephen Hammond

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

[Stephen Hammond]

I am not very good at holding my breath, so I certainly shall not try it now—but probably people do not want me to expend much more breath in my remarks tonight.

I must say to my right hon. Friend the Member for Haltemprice and Howden that my problem is with part of what his new clause does. I absolutely accept the premise, as everybody in this House must, that people are innocent until proven guilty. However, and I do not know whether this has really been addressed so far, his new paragraph 1(c)(1A)(c) says that condition 1 is that

“P knew that the loan or quasi loan should have been accounted for as income in the relevant year.”

There is a fundamental problem with that, in that anyone could say they did not know that, and how do we prove it? The clear problem is that, much as I support the intent of what he is trying to do, the effect of what he seeks would be to create a precedent that seems to me to take away the basis of the UK tax system, because I might say to someone, “We both know that we should not be paying tax on this and therefore we can proceed on that premise.” The precedent that that sets is a major problem for gathering tax.

[Mr David Davis]

If my hon. Friend thinks that this is the precedent, he should go back to the Finance Act 2008, which gives HMRC a 20-year assessment period in which it can assess whether the taxpayer participated in a transaction knowing that it was part of an arrangement attempting to bring about loss of tax. That is precisely what it says.

[Mr Davis]

Yes, it is on the statute book. The precedent is there.

[Stephen Hammond]

The precedent that I am looking at is very clear that there seems to be an issue with the whole tax system.

European Union (Withdrawal) Bill

Debate between David Davis and Stephen Hammond

Tuesday 12th June 2018 Commons Chamber

[Mr Davis]

People keep using the phrase “meaningful vote”. What it conceals in some cases, and I suspect that that is the case for the hon. Gentleman, is that they want to reverse the result of the referendum, and nothing we do will be organised to allow reversal of the result of the referendum.

[Stephen Hammond (Wimbledon) (Con)]

Will my right hon. Friend give way?

[Mr Davis]

I will give way in a moment.

The Government have also made provisions to allow the vote to happen in this House before the European Parliament votes on the deal, as long as it is practical. This follows the spirit of the Lords amendment, but our proposal has some significant differences. First, we have attached a deadline to the Lords’ consideration of a motion on the final deal. It is not right that the Lords could have a veto on the deal simply by filibustering or refusing to consider the motion. Anyone who suggests that this is unlikely should consider that it was a concern raised by their lordships’ themselves in debate.

--- Later in debate ---

[Mr Davis]

I will give way in a moment.

Instead, we have provided that, in the event that Parliament rejects the deal put to it, the Government will be legally obliged to make a statement on their proposed next steps in relation to article 50 negotiations within 28 days of that rejection. This House would of course then have plenty of tools at its disposal to respond, but I am as confident as ever that we will secure an agreement that this House will want to support.

[Stephen Hammond]

I think that everybody in this House would accept my right hon. Friend’s proposition that we cannot bind the negotiations, but clearly the point of concern, which he is getting to now, is this: if there were no deal, does the amendment in lieu cover that circumstance? If it does not, how does he propose to deal with that?

[Mr Davis]

If there were no deal for some reason other than the House rejecting it—it is incredibly, almost implausibly, unlikely, but let us imagine that the Government decided that they would not have a deal at all—we would of course do the same thing and come back and make a statement to the House, and the House would then have the right to respond.

EU Exit Negotiations

Debate between David Davis and Stephen Hammond

Tuesday 5th December 2017 Commons Chamber

[Mr Davis]

A comprehensive free trade agreement, a customs agreement and all the associated regulatory alignment. While I am on my feet, let me pick the hon. Gentleman up on his comment about the result of the general election. I remind him that 85% of Members of this House were elected on manifestos that said we should leave the European Union.

[Stephen Hammond (Wimbledon) (Con)]

My right hon. Friend will of course know that the UK has a large surplus in services with the EU. Does he agree that, for the continued success of legal, professional and financial services post Brexit, not only mutual recognition, but UK-wide regulatory alignment with the EU will be necessary?

[Mr Davis]

If by alignment my hon. Friend means mechanisms such as mutual recognition, yes, I agree entirely.

Leaving the EU: Parliamentary Vote

Debate between David Davis and Stephen Hammond

Thursday 26th October 2017 Commons Chamber

[Mr Davis]

I am not here to preview the Committee stage of the Bill, but let me say this to the hon. Gentleman. I take very seriously the views of the House in this matter, and I expect that there will be any number of votes—I have just referred to the Constitutional Reform and Governance Act as one element of that, but it will not be the only one—which will give the House very strong influence on the outcome of this negotiation.

[Stephen Hammond (Wimbledon) (Con)]

In his answer to the shadow Secretary of State, my right hon. Friend said that there would be a vote at the right time. Will he confirm that the right time is prior to a deal being signed and before we leave the European Union in March 2019?

[Mr Davis]

The right time has to be, first, when we have a draft treaty in front of us—not an actual treaty, because it will be prior to ratification by the European ratification process, starting with the European Parliament, and we have made that undertaking. It has to be after that is done, in order for the House to be informed. Otherwise, it will be as soon as possible, and as I have said, our intent and our expectation is that it will be before the European Parliament has its opportunity and, therefore, before the process goes ahead.

EU Exit Negotiations

Debate between David Davis and Stephen Hammond

Tuesday 5th September 2017 Commons Chamber

[Stephen Hammond (Wimbledon) (Con)]

May I thank my right hon. Friend for his statement, and for the opportunity he gave Members of this House to spend many pleasurable hours during the recess reading position papers? The position paper on customs largely fails to mention financial services in any way. Given that the sector is our biggest tax raiser and represents 45% of our exports, will my right hon. Friend confirm to the House the Government’s ambitions for customs arrangements in financial services? Have they yet been raised in the negotiations, and does he intend to publish a position paper on those arrangements?

[Mr Davis]

The answer to the last part of the question is: not immediately. The financial services sector is clearly an important part of the free trade agreement we want to achieve. Customs primarily apply, of course, to physical goods. We are very clear in our minds that financial services are a massively important part of the negotiation. My hon. Friend should be in absolutely no doubt about that.

Oral Answers to Questions

Debate between David Davis and Stephen Hammond

Thursday 27th April 2017 Commons Chamber

[Stephen Hammond (Wimbledon) (Con)]

T1. If he will make a statement on his departmental responsibilities.

[The Secretary of State for Exiting the European Union (Mr David Davis)]

Before I answer, may I start by thanking you, Mr Speaker, for your forbearance in these Question Times, and for everything else you have done for this House in the past several years?

We have a clear plan for Britain, one that fosters a deep and special new partnership with the European Union, and serves the interests of all parts of the United Kingdom. We want that new partnership to be underpinned by a comprehensive free trade agreement that gives UK companies maximum access to European markets, and European companies the same access to UK markets. Membership of the single market involves maintaining all four freedoms, including free movement of people, which is therefore inconsistent with our desire to take back control of our borders. Britain is leaving the European Union, but we are not leaving Europe. It is in both our interests to see the European Union succeed socially, politically and economically. That will be our policy in the coming years.

[Stephen Hammond]

Will my right hon. Friend confirm that as part of that plan the Government are committed to the putting the rights of EU citizens into British law via the great repeal Bill, and that nothing will affect those rights unless it has the consent of this House?

Article 50

Debate between David Davis and Stephen Hammond

Tuesday 24th January 2017 Commons Chamber

[Mr Davis]

I will not reiterate the facts of the Supreme Court judgment on the Northern Irish aspect. The hon. Gentleman can read those much more authoritatively in the judgment. I have said to him before in this House and reiterate to him again that there is more than one guarantee in this matter. The British Government are determined to preserve the peace settlement and all that underpins it; the Irish Government are determined to underpin it; and so is the Commission. I will say something nice about the Commission in this regard. When I spoke to Michel Barnier, my opposite number, he reminded me that he was involved in the original peace process. All the parties to this matter therefore have a vested interest in delivering what the hon. Gentleman wants.

[Stephen Hammond (Wimbledon) (Con)]

You will recall last week, Mr Speaker, my right hon. Friend extolling the fact that he liked to please his boss. He also said earlier what a wonderful speech she made last week. I say to him that he could unify the whole of this side of the House by publishing a White Paper based on that excellent speech. I am sure that that would make him even more popular with our boss.

[Mr Davis]

I thought I was really rather restrained, given that the Prime Minister was sitting here today. I could have been thoroughly oleaginous, but I was not prompted by my right hon. Friend the Member for Broxtowe (Anna Soubry) this time, who gave me the line about Her Majesty.

New Partnership with the EU

Debate between David Davis and Stephen Hammond

Tuesday 17th January 2017 Commons Chamber

[Mr Davis]

The intention is none. To that end, the JMC will be considering a submission from the Government of Wales in—I think—the meeting after next.

[Stephen Hammond (Wimbledon) (Con)]

I believe that the Prime Minister’s plan is a pragmatic one setting out our ambition to continue to attract the best talent, to have access to the single market and to ensure a phased implementation. It certainly recognises the ambitions of the financial services industry. Will my right hon. Friend confirm to the House that he will follow the Prime Minister’s lead, put the needs of the financial services industry at the forefront of his negotiations and secure mutual recognition and equivalence in those negotiations?

[Mr Davis]

Following my earlier oleaginous comments, of course I will follow the Prime Minister’s lead. Yes, financial services are an enormously important industry, supporting—along with all the associated service industries that support it—1.9 million jobs, so we will treat it as incredibly important. It also generates a great deal of revenue for the Treasury, however, so even if I did not pay attention to it, I am sure the Chancellor would.

Oral Answers to Questions

Debate between David Davis and Stephen Hammond

Thursday 20th October 2016 Commons Chamber

[Stephen Hammond (Wimbledon) (Con)]

10. What progress his Department has made in engaging with the financial services sector on the potential effect on its revenues of the UK leaving the EU.

[The Secretary of State for Exiting the European Union (Mr David Davis)]

The Chancellor and I are both determined to ensure we get the best possible deal for our financial services sector—a crucial part of our economy—and not just for the City of London but for the country more widely. Two thirds of financial services jobs are outside the capital, including 150,000 in Scotland. We are determined to ensure that this UK-wide industry continues to thrive. The Chancellor and I have met to discuss this, and, as one would expect, agree that financial services will be of great importance in these negotiations, that we must remain in a position to attract the brightest and the best in the global battle for talent, and that we will seek the best possible terms of trade for our financial services in the European market. We are also working together to maximise opportunities for financial services arising from our exit from the European Union. We have already met representatives of the financial services industry and expect to do so again as we shape our negotiating position.

[Mr Davis]

We are seeking to ensure a smooth and orderly exit from the European Union, and it would not be in the interests of either side—Britain or the European Union—to see disruption. To that end, we are examining all possible options, as one would expect. We are approaching these negotiations in good faith and with good will towards our negotiating partners—we hope the same applies in reverse—focused on the mutual interests of the UK and the EU, including financial stability. I would say that having London as the No. 1 global financial centre sitting at the heart of the global capital markets is not just in the UK’s interest but in the European Union’s interest. I am confident that everyone will see the value of not undermining that.

[Stephen Hammond]

In his answer to my right hon. Friend the Member for Chipping Barnet (Mrs Villiers), the Secretary of State talked about all possible options. Yesterday in the Treasury Committee, I asked the Chancellor whether he accepted the likely need for transitional arrangements. Has my right hon. Friend met regulators to discuss systemic risk, and major financial institutions to discuss loss of business, if those transitional arrangements are not put in place?

[Mr Davis]

The Chancellor’s response was much the same as mine will be. Yes, we have been talking to the European institutions, in particular, about this matter, and they take the same view as we do.