Oral Answers to Questions

Debate between David Gauke and Christian Matheson

Tuesday 18th December 2018 Commons Chamber

[The Lord Chancellor and Secretary of State for Justice (Mr David Gauke)]

Recruiting and retaining engaged and motivated staff is critical to making our prisons safer and stopping reoffending. We have spent an additional £100 million to ensure we have thousands of extra prison officers at the frontline, allowing us to run better regimes and improve staff-prisoner relationships. From October 2016 to September 2018, there was a net increase of 4,364 full-time equivalent prison officers. We know that the retention of staff will take more than a one-size-fits-all approach. Specific action is being taken where attrition is most acute.

[Christian Matheson]

Morale among prison officers is at an all-time low because of low pay, understaffing and soaring violence, and now a retirement age that could go as late as 68. Police officers get the same protection as prison officers, and they are allowed to retire at 60. Why can prison officers not?

[Mr Gauke]

Of course, a deal was offered to prison officers and rejected a couple of years or so ago, but to come back to the point about morale, it is important that we address violence in prisons. That is why we have increased the number of staff, why we are giving prison officers the tools that they need—for example, PAVA—and why we are determined to ensure that we can turn this increase in violence around.

Oral Answers to Questions

Debate between David Gauke and Christian Matheson

Tuesday 5th June 2018 Commons Chamber

[Mr Gauke]

Very much so, and I want to pay tribute to the employers, businesses and charities that do so much in this space. I am pleased that there is a consensus in the House that we need to focus on rehabilitation and reoffending, and one of the best ways of doing that is focusing on employment.

[Christian Matheson (City of Chester) (Lab)]

T10. I have constituents who are close family members of the murdered Fusilier Lee Rigby. They are being taunted by the constant drip, drip of musings from within the Prison Service of his two killers. Can Ministers ask the Prison Service to get a grip on those pronouncements and the ability to make them, and if they are to be made, might the family be informed first?

Parole Board and Victim Support

Debate between David Gauke and Christian Matheson

Tuesday 9th January 2018 Commons Chamber

[Mr Speaker]

I have to say that the succinctness of the right hon. Member for New Forest West (Sir Desmond Swayne) is medal-winning. May I exhort him to circulate his text book on pithy questions?

[Christian Matheson (City of Chester) (Lab)]

My question will not be quite as pithy, I am afraid.

Much as I support the idea of redemption and rehabilitation, my own view is that a sentence of nine years in prison for 19 rapes is simply derisory, especially given that, as was pointed out by the right hon. Member for Broxtowe (Anna Soubry), this was a predatory attacker. The Secretary of State said that IPP sentences were no longer in use. Is he satisfied that the current sentencing guidelines meet the need for decent sentences in shocking cases such as this?

[Mr Gauke]

First, let me briefly correct the hon. Gentleman: Worboys was convicted of 19 offences, and there was one conviction of rape. I do not say that in any way to undermine or belittle the seriousness with which his crimes should be considered.

As I have said, sentences for rape have gone up over the last eight years, and I think it right that that has happened.

Oral Answers to Questions

Debate between David Gauke and Christian Matheson

Tuesday 29th November 2016 Commons Chamber

[Christian Matheson (City of Chester) (Lab)]

T5. Chester’s status as a centre for the financial services industry, particularly FinTech, is under threat from continuing problems with retention by businesses, which cannot get staff to come to the area. Staff cannot get there, because our infrastructure is not good enough. Instead of gloating about the Oxford to Cambridge corridor, can we have some news about when money will be spent on the M56 to upgrade it to a smart motorway?

[The Chief Secretary to the Treasury (Mr David Gauke)]

I will take that as a representation and make sure that my right hon. Friend the Transport Secretary is aware of it. The hon. Gentleman will be aware that we are already setting out an ambitious programme for road spending over this Parliament. In addition, my right hon. Friend the Chancellor of the Exchequer made announcements last week about putting in more funding to improve our road network across the country. I am happy to look at the case that the hon. Gentleman raises.

Finance Bill (Fourth sitting)

Debate between David Gauke and Christian Matheson

Tuesday 5th July 2016 Public Bill Committees

[Mr Gauke]

I come back to what I was saying earlier, namely, that doing nothing will mean that many properties, often relatively modest properties, will fall within the inheritance tax bands. Doing nothing will mean that a tax that I think most people in this country would support, on the basis that it is designed for the very wealthy, would apply to people who would not necessarily have had high incomes in their lifetimes. That creates a sense of unfairness. There are certainly parts of Edinburgh where relatively modest properties are of such a value as to create concerns about inheritance tax.

[Christian Matheson (City of Chester) (Lab)]

If the Minister is concerned about rising property prices and an overheating housing market driving more people into inheritance tax bands, perhaps he should do something about the housing market—rather than fiddling around with the tax bands—for example, by building more houses for rent and cooling the housing market in that way.

[Mr Gauke]

I very much support the idea that we need to build more homes. As a Government, we have done so. We are a Government who have changed many of the planning rules. We are a Government who announced a substantial housing package in the autumn statement. This Government are doing much to improve house building in this country. Indeed, the number of building starts last year was high, which is encouraging.

To conclude, the measures before us are a sensible further step to meeting our objective of taking the family home out of inheritance tax. They will also ensure that there is no impediment to people downsizing, creating difficulties in the housing market. I hope, notwithstanding the objections from the Opposition, that clause 82 and schedule 15 will stand part of the Bill.

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

HMRC and Google (Settlement)

Debate between David Gauke and Christian Matheson

Monday 25th January 2016 Commons Chamber

[Mr Gauke]

My hon. Friend puts it very well. It is a pity that previous Governments have not taken this matter as seriously as we have.

[Christian Matheson (City of Chester) (Lab)]

The problem is that the Conservatives have form when it comes to arranging mates’ rates for taxation. They gave a massive tax cut to big City banks, particularly in relation to profits brought in from abroad. They also gave a massive tax cut to hedge funds, £25 million of which arrived in the Conservative party’s coffers last year, and now we have this deal. City banks, hedge funds and globalised corporations—the three bodies the modern Conservative party exists to serve. So let me ask the Minister: why should my constituents in Chester, who work hard and play by the rules, subsidise these big globalised corporations?

[Mr Gauke]

The fact is that in the last Parliament we increased taxes on banks and on hedge funds. The hon. Gentleman’s constituents should be asking why their Member of Parliament could not ask a better question.

Finance Bill (Fifth sitting)

Debate between David Gauke and Christian Matheson

Thursday 15th October 2015 Public Bill Committees

[Christian Matheson]

I feel I ought to add my congratulations to my hon. Friend on his research. He seems to be doing an impressive job. I was also impressed by the recommendation he gave about Honest John in The Daily Telegraph—I might cancel my Saturday subscription to the Morning Star and take the Telegraph instead.

My hon. Friend makes an important point. It is entirely legitimate to build environmental considerations into the taxation system if we want to change people’s habits in order to protect the environment, and the clause gives the impression that the Government are once again rolling back from their pledge to be the greenest Government ever and falling into bad old ways.

There is a way out. Perhaps the Minister should take a pause on the clause, as my hon. Friend suggested, because so much of it is predicated on emissions standards that have been thrown into turmoil by one company, which was not a British company—I do not believe that a British company would partake in such skulduggery. We cannot be absolutely sure that emissions standards across the industry are as they should be, because manufacturers in certain areas have been telling us, shall we say, statements that lack 100% veracity.

It is not only that motorists have been hoodwinked. The Government have potentially lost revenue as a result of emissions figures being massaged, with lower figures given. What are the Minister’s intentions, either through the Bill or perhaps more appropriately through another mechanism, on claiming back any revenue lost as a result of the Volkswagen scandal? The state has lost revenue as a result, so taxpayers have been hoodwinked as well as individual motorists, and although the Bill might not be the right mechanism for this, there must be a role for the Government in chasing down such manufacturers. Perhaps the Minister should not push through new measures linked to emissions standards until he and his colleagues in the Department for Transport are sure that a fair taxation system can be based on those standards. The Minister may wish to heed my hon. Friend’s good advice.

[Mr Gauke]

Let me try to respond to the points made. On the environmental incentives, consumer research suggests that VED is not an important factor in purchase decisions. Where VED has been shown to play a supportive role is in the highly visible first-year rates. In those we have retained, and indeed strengthened, the environmental signal: for example, first-year rates will double for the most polluting cars.

To drive real emissions reductions in transport, we need to incentivise the uptake of fully zero-emission cars such as pure electric cars. Owners of such cars will pay nothing in the VED system, while highly polluting cars will see a doubling of their rate. As more expensive cars are generally more polluting, it is the case that owners of such cars will continue to pay more than those of smaller, efficient cars through the standard rate supplement.

The point made by the hon. Member for Wolverhampton South West about the number of cars in the lowest band was correct. We are deliberately tightening the incentives at the bottom end. The current structure provides little incentive to buy a car much cleaner than 100 grams of CO₂ per kilometre and we believe that such an incentive should be there. It is also worth making the point that nobody’s VED on their existing cars will go up. I made that point earlier, but I want to reiterate it.

Finance Bill (Sixth sitting)

Debate between David Gauke and Christian Matheson

Thursday 15th October 2015 Public Bill Committees

[Christian Matheson]

I certainly do not think we should not take enforcement action against people who can but do not pay their taxes. That is not the issue. I agree with much of what the hon. Member for Wyre Forest said about enforcement for non-payers. I was slightly concerned that in the tone of what the Minister said, there was much more zeal for enforcement action at the lower end of the market than at the higher end. If that is a mistaken impression, I apologise, but there has to be more focus on large-scale corporate taxation, which may of course be covered in other parts of the Bill.

[Mr Gauke]

Let me say first that I am disappointed the Labour party will not be supporting the measure. I reiterate: these powers will be used at the end of an exhaustive process, whereby there will have been many opportunities for a debtor to have paid the debt and to have challenged the application of the debt to them. It is a measure targeted at individuals and businesses that are making an active decision not to pay or to delay paying the money they owe, despite having sufficient funds in their accounts and despite attempts by HMRC to contact them and encourage them to put their affairs in order. We must remember that we are talking about allowing £5,000 or so to remain in an account, so that people have the sums to make ends meet in the short term. I accept that court action is appropriate in some circumstances, but it imposes significant costs on both the debtor and HMRC.

--- Later in debate ---

[Mr Gauke]

I come back to the practical operation of this power. Let us remember that the existence of this power will encourage some debtors to pay tax at an earlier stage in the process, knowing that HMRC is able to pursue them more effectively. In Committee, and on the Floor of the House, we often debate the need to reduce the tax gap. The shadow Chancellor made that point on the Floor of the House yesterday. Of course, the tax gap consists of many things, including corporate tax avoidance, which I did not specifically address in my remarks because this clause does not specifically relate to corporate tax avoidance, but these powers could apply to any debt owed to HMRC, including debt involving corporate tax avoidance. If it is determined that a debt is owed, HMRC may pursue it in that way.

[Christian Matheson]

Will the Minister confirm that this clause will not simply apply to personal accounts but will also apply to corporate and business accounts of corporations that owe tax?

[Mr Gauke]

The clause will apply to both individual and business accounts, so it could be used in such circumstances. I will not detain the Committee for long on this subject but, on corporate tax avoidance, we have strengthened the capabilities of HMRC’s large business teams, introduced a diverted profits tax and led the way on the OECD’s work on base erosion and profit shifting. The Government have a proud record in that area.

However one looks at the tax gap, and there are different views on the size of the tax gap, corporate tax avoidance is a relatively small proportion. Whether one looks at the authoritative and well-respected HMRC numbers or at Richard Murphy’s numbers, no one claims that corporate tax avoidance is a large part of the tax gap. That is not to say that corporate tax avoidance is not important. It is important, but we also need measures that address all types of people who fail to pay the taxes that are due.

Finance Bill (Third sitting)

Debate between David Gauke and Christian Matheson

Tuesday 13th October 2015 Public Bill Committees

[Mr Gauke]

I hope I will be able to welcome the support of the Opposition for the clauses in full, although the hon. Gentleman is quite right to ask scrutinising questions.

We are not making any claims about the effect on house prices. The OBR’s assessment is that the impact on the housing market will be small and it has not adjusted its forecast for house prices. The answer to the issue of house prices is improvement in supply—I suspect the hon. Gentleman would agree—so it is worth pointing out that housing starts are at a seven-year high. However, the Government remain focused on putting the right conditions in place so that we build more houses and more people have the opportunity to own their own home.

[Christian Matheson (City of Chester) (Lab)]

The hon. Member for Wyre Forest made the interesting point that home ownership is the principal form of saving for most people in this country—I hope I am not misrepresenting him, Sir Roger. Do the Government share that view?

[Mr Gauke]

It is up to individuals to decide how they wish to save. We are determined to ensure that the opportunity to own one’s own home is available to as many people as possible. That requires us to increase the supply of homes in this country, and that is a Government priority. We are moving in the right direction, but, as we set out during the Conservative party conference last week, we want to do more to put in place the conditions wherein more people will have that opportunity.

On the impact of the changes, there was a question about whether the measures might move a basic rate taxpayer into the higher tax band. We expect that around 94% of landlords who will have to pay more tax will have a total taxable income of over £35,000. On average, landlords own 2.7 properties. Those currently with taxable income under £35,000 who will have to pay more tax have, on average, larger rental incomes and larger property portfolios; they have an average pre-tax rental income of more than £64,000, and own six properties. It is true that basic rate taxpayers could be affected by the measures, but often—not in every case, but overwhelmingly—those people will have quite large portfolios and may have leveraged up to a greater extent than the typical buy-to-let landlord.

I hope that clarification has been helpful to the Committee, and that the measures will have the Committee’s support.

--- Later in debate ---

[Mr Gauke]

The clause makes changes to ensure that sports people who visited the UK to compete in the London Anniversary games are exempt from tax on any income received as a result of their performance at the games.

As hon. Members will know, the London 2012 Olympic and Paralympic games were an extraordinary success, with stunning wins for British athletes, beautiful stadiums and an unforgettable atmosphere. For the Olympics, the Government provided an exemption from income tax for non-resident sportspersons. That was a condition of the bid to host an internationally mobile, world-class event.

The success of the 2012 Olympics and Paralympics did not end there: we have now created a legacy programme that has delivered urban regeneration and engagement in sporting activities. The prestigious 2015 London Anniversary games were an important part of that legacy, attracting icons that hon. Members will remember from 2012.

The clause applies the same exemption policy that the Government provided in 2012. It benefits athletes who reside overseas and visited the UK to participate in the London Anniversary games, which were held in July. Importantly, this tax exemption encouraged more world-class international athletes to compete in the event. Following the announcement in the Budget, Usain Bolt confirmed that he would compete and he went on to win the 100-metre race, which drew a much wider audience’s attention to the success of the Olympics and London. The exemption was granted on an exceptional basis owing to the opportunity the event provided to build on the legacy of the 2012 games.

[Christian Matheson]

The London Anniversary games were specifically related to the Olympics, which were a great success for London and the whole of the nation. I have to say that a feeling remains in other parts of the UK that London, notwithstanding its success, does seem to get more than the lion’s share of sporting events. Is there a view in government that specific provisions such as this, which help to attract world-class athletes such as Usain Bolt, might be extended on individual bases to other great events that take place outside London, so that they too might benefit from the attendance of such athletes?

[Mr Gauke]

I can give one good example: we applied the same exemption for the Glasgow 2014 Commonwealth games. That is an example of the Government’s willingness to do that. Again, that was part of maintaining the Olympic legacy and ensuring that we could get top athletes to compete in the Commonwealth games. The hon. Gentleman raises a fair point and I hope he accepts that I have given a fair answer to it. I hope the Committee agrees that the clause should stand part of the Bill.

Oral Answers to Questions

Debate between David Gauke and Christian Matheson

Tuesday 16th June 2015 Commons Chamber

[Christian Matheson (City of Chester) (Lab)]

15. What assessment he has made of the level of productivity in the economy.

[The Financial Secretary to the Treasury (Mr David Gauke)]

The UK’s productivity has been lower than the G7 average since OECD records began 45 years ago. In the previous Parliament, we took a number of steps to increase the UK’s productivity in the long run, including cutting the corporation tax rates to the lowest in the G20 and investing in skills, infrastructure and science. The Chancellor will set out what further action this Government will take to boost productivity in our productivity plan to be published before the Budget.

[Christian Matheson]

I thank the Minister for his reply. In Chester, the number of people on apprenticeships continues to decline, and I am talking about Conservative-style cheap and cheerful apprenticeships with little added value at the end. Was the creation of a low-skill, low-wage economy an intention of the Government, or was it an unintended by-product?

[Mr Gauke]

On the subject of Chester, unemployment fell over the course of the last Parliament by 49%, which is something I would have expected the hon. Gentleman to welcome. The reality is that we are investing in apprenticeships; we saw 2.2 million people undertake apprenticeships in the previous Parliament, and we will increase that to 3 million in this Parliament.