Work, Health and Disability
Debate between David Gauke and Alan Brown(6 years, 5 months ago)
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Alan Brown (Kilmarnock and Loudoun) (SNP)
My constituent Jade Minto suffered mental health problems and had to give up her work, but she subsequently gained a qualification to enable her to work in the care sector and has been offered a job. That sounds like a good news story, except for the fact that she is on ESA and allowed to work only a maximum of 16 hours of week, and the DWP will not allow her to take up the position because she needs to do an internal training programme that would take her over the threshold of 16 hours a week. Will the Government look at ending this crazy situation?
Oral Answers to Questions
Debate between David Gauke and Alan Brown(7 years, 3 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Mr Gauke
I draw my hon. Friend’s attention to the housing infrastructure fund, which demonstrates the Government’s determination to ensure that when new housing is built in areas of high demand, we also deliver the infrastructure to support that housing. That will have a beneficial effect by getting more houses built, and also ensuring that the appropriate infrastructure is in place.
Oral Answers to Questions
Debate between David Gauke and Alan Brown(8 years, 1 month ago)
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Alan Brown (Kilmarnock and Loudoun) (SNP)
12. Did the Secretary of State discuss with the Chancellor the merits of an £8.5 billion corporation tax cut and a £6 billion giveaway in capital gains and inheritance tax versus those of a proposed £4 billion cut in payments to the disabled, and how that would affect people in Scotland, or did he sit there and do what he was telt yet again?
Air Passenger Duty: Regional Airports
Debate between David Gauke and Alan Brown(8 years, 6 months ago)
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Mr Gauke
I refer the hon. Gentleman to the remarks that I made a few moments ago. In accordance with the St David’s day package, we are considering the case and options for devolving air passenger duty to Wales. That consideration is ongoing. Once a conclusion has been reached, I am sure that he will be looking very closely at our response.
If I may, I will respond to some points that have been made in this afternoon’s debate. The hon. Member for Blackley and Broughton (Graham Stringer) raised the issue of whether APD is a good tax or whether we should just scrap it. It is worth bearing in mind that it raises £3.2 billion each year, which is an important part of the Government’s overall revenues. We consider that APD is a fair and efficient tax that ensures that the aviation sector contributes to the public finances. The amount of tax paid by people who can afford business class travel or luxury jets is much more than that paid by a passenger going to the same destination in economy class.
In recent years, we have reduced long-haul rates of APD and frozen short-haul rates for five years, and we are exempting children. APD is the main way in which the aviation sector is taxed. International treaty agreement means that there is no tax on international aviation fuel and no VAT on international flights. Unlike many countries, the UK does not charge VAT on domestic flights. It is also worth pointing out that the aviation sector is performing strongly. Passenger numbers grew by 4% in 2014 compared with 2013.
My hon. Friend the Member for Crawley (Henry Smith) referred in an intervention to a PwC report arguing that abolishing APD would boost GDP, create jobs and pay for itself. We do not agree with the assumptions behind the 2013 and 2015 PwC reports on APD. Our view remains that abolition would have a limited effect on GDP and cause a net loss of tax receipts. As I said, APD makes a contribution towards the public finances. Abolishing it would put pressure on the Government to increase less efficient and more regressive taxes.
Alan Brown
The Minister makes the point that APD is one way of taxing the aviation industry and he thinks that it is a fair tax, but will he acknowledge that the UK charges a much higher rate? The UK’s short-haul rate in economy is more than double the EU average; in terms of the medium-haul rate, the UK charges €90, whereas the EU average is €24. The UK is aggressively taxing the aviation industry, and that is what the whole thrust of the debate is about. The Government may want to tax the aviation industry, but we are arguing that our industry is heavily over-taxed compared with those in other countries.
Mr Gauke
Our rates are higher than those in many other countries; I am not disputing that. I am arguing that we are not convinced that abolition of APD would pay for itself. Presumably the Scottish Government are also not convinced, because they have not brought forward proposals to abolish APD. It may be an aspiration for the long term—when finances allow—but that does suggest that there would be a loss of revenue.
The hon. Member for Central Ayrshire referred to the experience of Prestwick airport and the effect on tourism—a perfectly legitimate point to raise. As I said, we accept that APD rates are high on an international comparison. However, we think that APD is a very small component of a tourist’s overall spending on a trip to the UK. Some analysis done by Treasury officials over the summer suggests that depending on how long a long-haul passenger stays in the UK, APD probably makes up less than 2% of total spending on travel, hotels and subsistence, so although I accept the point, we have to put it into the context of the wider costs that may apply.