Tax Avoidance and Evasion

David Linden Excerpts

Tuesday 14th November 2017 Commons Chamber

[Kirsty Blackman]

The hon. Gentleman is confusing income tax with a number of other types of tax. What has happened in Scotland in relation to the paper that has been produced, which sets out a number of options and their effects, and then consults on them, is way more transparent than any action that any UK Government take in advance of any Budget, where they pull rabbits out of hats. The Scottish Government have entered into dialogue with the other parties, which have the opportunity to take that chance to criticise or to praise. They should do that, as he should. The Scottish Government and the SNP have called for this area to be devolved to Scotland because we think we would do a better job.

As everyone knows, tax evasion is illegal, but the Paradise papers highlighted that tax avoidance is immoral.

[David Linden (Glasgow East) (SNP)]

On the Paradise papers, does my hon. Friend share my concern at seeing the Duchy of Lancaster’s investment in BrightHouse, a company that exploits constituents in vulnerable areas such as mine with extortionate annual percentage rates of 70%? Does she find that immoral as well?

[Kirsty Blackman]

I agree with my hon. Friend on that, as I, too, have constituents who are exploited by organisations such as BrightHouse. It is not a company that anyone reputable should be investing in.

It is not that difficult for people to pay the tax that they owe; it is not that difficult to say to a financial adviser—this is for those who have bags of cash—“I would like my money to grow, but I wouldn’t like it to grow by avoiding the tax that I owe.” It would be easy for people to say that. It is clear that some people lack a moral compass. Where they are taking decisions to engage in aggressive tax avoidance, the Government must legislate so that they can no longer do so—to provide that moral compass for people and make sure that the tax is paid when it is owed. We must have the best possible tax rules in place. We must simplify the tax code. We must crack down on evasion, and we must legislate to reduce avoidance. The Government are in an untenable position: they cannot continue to implement austerity while leaving a tax gap.

Scotch Whisky Industry

David Linden Excerpts

Tuesday 31st October 2017 Westminster Hall

[Mr Carmichael]

Indeed. The Scotch Whisky Association and the Wine and Spirit Trade Association would make that point: there is an industry and supply chain across the country. That includes the fact that the grain comes from farms throughout the country. The impact of the industry is particularly acute, however, in rural Scotland. The growth of whisky tourism, in particular, has been phenomenal in recent years, and has been transformative for the most economically fragile communities in Scotland.

[David Linden (Glasgow East) (SNP)]

There is an impact on the urban economy, as well as on the rural economy. Dewar’s whisky is produced on London Road in Glasgow. I do not know whether the right hon. Gentleman has had the pleasure of drinking it; I am more than happy to share it. His point about the wider supply chain is important. Having visited the bottling plant, I know the impact on Carntyne Transport, which provides many jobs in my constituency.

[Mr Peter Bone (in the Chair)]

Order. It is always good to have props—but it is wholly unallowed.

Finance Bill

David Linden Excerpts

Tuesday 31st October 2017 Commons Chamber

[Bim Afolami (Hitchin and Harpenden) (Con)]

I felt that, as I was going to speak this afternoon, I should listen to speeches by colleagues in the House.

[David Linden (Glasgow East) (SNP)]

Controversial.

[Bim Afolami]

I know that is a controversial view that many have. In particular, I listened very carefully to the speech by the hon. Member for Bootle (Peter Dowd) from the Opposition Front Bench.

Finance Bill (Fourth sitting)

David Linden Excerpts

Committee Debate: 4th sitting: House of Commons
Thursday 19th October 2017 Public Bill Committees

[Mel Stride]

A very quick one—perhaps we should leave it there, but no. The national living wage is another example of doing things for those who are less well-off. There are many things to consider.

[David Linden (Glasgow East) (SNP)]

Does the Minister accept that the national living wage that he is trumpeting is in fact a con trick, because it does not apply to under-25s?

Finance Bill (First sitting)

David Linden Excerpts

Committee Debate: 1st Sitting: House of Commons
Tuesday 17th October 2017 Public Bill Committees

[Kirsty Blackman (Aberdeen North) (SNP)]

It is a pleasure to take part in another Finance Bill Committee, and I am looking forward to another one coming later this year. It feels like we have been discussing this one for quite some time, so I am glad to finally be at the Committee stage in a Committee Room. Thank you for your chairmanship, Mr Howarth.

I wanted to highlight our amendment on this. There have been a huge number of changes in the pensions landscape in relatively recent years. In my working lifetime, we have seen a move away from a final salary pension scheme to career average for the majority of people, even in the public sector. We have seen changes to things such as the lifetime individual savings account and the ability to withdraw pensions. Those are pretty significant changes in the landscape; pensions for people my age look very different from how they looked not that many years ago.

We have also seen changes to the Women Against State Pension Inequality issue, and the equalisation problem. A number of people have come through the door of my surgery and talked to me about how they have been caught by the WASPI issue. If they had had different pensions advice, they would not have retired in the way they did. More than one person who took early retirement now finds that they are caught by the WASPI issue when they should have retired under ill health, which would have given them a completely different outlook on their pensions. If they had had more appropriate advice when they were deciding when to retire, they would have been much better off.

I welcome the Minister’s proposal to make the first £500 of pension advice tax-free; that is an important change and one that we all generally agree with. I agree with the shadow Minister, however, who asked whether £500 is the most appropriate amount. Should it be £1,000? Should it be less? The amendment we have put forward specifically asks about the issues for women born on or after 6 April 1950, because they are the ones who have been caught by this WASPI issue. I am keen to see an increased uptake of pensions advice by those women, because for some of them changing the way in which they retire would make a difference.

Those women have been failed by the system. They have been failed by the Government, who have moved the goalposts and changed the date on which they expected to retire. Some of them retired not long ago and were completely unaware of the change. Those are people who would have read every bit of paper that came through their door. A medical secretary came to my surgery the other day. A medical secretary is someone very diligent about reading bits of information that come through the door, particularly about financial matters that are important for her future, and I believe that she would have chosen a different route to retirement if she had had appropriate advice, and if she had known what would happen on state pension equalisation and what would happen to her.

[David Linden (Glasgow East) (SNP)]

Does my hon. Friend agree that this Government have a pretty dire record on protecting pensioners, not least on the WASPI issue, but even on the winter fuel payment?

[Kirsty Blackman]

That is absolutely correct; I have seen people come through my surgery door to complain about that as well. I did not quite realise the difference in temperature between London and where I live until I became an MP. In London, I could quite easily not have the heating on at all through the entire year, whereas in Aberdeen my heating is on in September, or even earlier. Heating costs significantly more, so the winter fuel payment is hugely important for a number of my constituents and makes a significant difference to their lives. Those people are in fuel poverty; they have been failed by the system, and it is important to note that.

I will not stretch this out too much, but I must be clear that a number of people have been failed by changes to the goalposts. Those changes might be in how their pension is structured and what kind of pension they will get in the end because of movements away from final salary pensions, or because their state pension age has been moved, or because of things like the Government’s wonderful lifetime ISA, which means that if someone becomes sick, their lifetime ISA is considered a savings pot for benefits and held against them when they try to claim benefits. Therefore, a lifetime ISA cannot be seen as something that can be used instead of a pension, because it does not provide the level of safeguards that a real, proper pension pot does.

Devolved Powers in Scotland

David Linden Excerpts

Tuesday 17th October 2017 Westminster Hall

[Stephen Kerr]

I do not necessarily recognise the nature of the problem that the hon. Gentleman is describing and I will come on to talk about the relationship that should exist between the Parliaments of this island.

As I was saying, Edinburgh is not the end of the road; Holyrood should just be the beginning. Politics, indeed, should be local. However, that is not Scotland’s story, nor has it been for the last 20 years of our Scottish Parliament. Instead of treating devolution as a process of bringing power to the people, first the Scottish Executive and then the Scottish Government have consolidated power in their offices in Edinburgh.

There has been a power grab in Scotland, sucking power from communities and taking power from the many into the hands of the few. Decisions taken around the Cabinet table in Bute House are remote and removed from the daily lives of the people of Scotland. They often run roughshod over the views of the public, and are apparently unheeding to and uncaring about the difficulties that communities face.

I am, however, full of hope that that situation can be addressed by the simple adoption of the principles of devolution by the Scottish Nationalist Government in Edinburgh. Since the passage of the Scotland Act 2016, we now have a powerhouse Parliament. It should not be forgotten that it was a Conservative Government who delivered those powers, in fulfilment of the vow made by David Cameron and, as Scottish Conservatives, we are proud to have done that. It is David Cameron’s proud legacy. Powers over equalities, gaming machines, income tax, railway policing, welfare, quarrying, air passenger duty, consumer advocacy and advice, the Crown Estate, elections and employment programmes—all these are in addition to the powers of general competence that the Scottish Government already enjoy, and there are more powers on their way.

The powers at the disposal of the Scottish Parliament have the potential to make a real difference to the lives of the people of Scotland. The Scottish Parliament can develop the economy, create specific help for people who need welfare and choose to vary taxation. I am by no means a fan of the idea of raising taxes, but I believe that services must be paid for and it should be for local councils and the Scottish Government to set an appropriate level of tax to pay for those services. With all those powers and the ability to tax and borrow more than ever before, the Scottish Parliament is well placed to get to work to solve our country’s problems and to work for Scotland’s betterment. What a shame that we still have so much confusion and grievance being shown.

Let me give an example of that. One of the Members of the Scottish Parliament made a statement just last month calling on Westminster to do something about the number of fixed odds betting machines, with the grievance about the lack of power hanging in the air, but of course that power was devolved in May 2016. It is possible that that statement was a simple mistake brought about by the confusing nature of the legislation, but it also misled members of the public about who is responsible. Instead of using such an important issue as a political ping-pong ball batted over Hadrian’s Wall, would it not be better if we approached such issues as a way of creating partnerships between different levels of Government, in order to achieve something?

[David Linden (Glasgow East) (SNP)]

I am very grateful to the hon. Gentleman for giving way and for giving us the opportunity to talk a bit about why the Scottish National party Government are still polling very highly and why the Tories have moved back into third place in Scotland. However, on the subject of fixed odds betting terminals, I represent a constituency that is littered with betting shops, as a result of the liberalisation of the Gambling Act 2005. Does he recognise that most of those shops are covered by previous legislation and that only new terminals are dealt with differently?

Ways and Means

David Linden Excerpts

Ways and Means resolution: House of Commons
Wednesday 6th September 2017 Commons Chamber

[Wes Streeting]

Of course, we cannot forget Glasgow. We have several powerful financial centres in the UK. They can contribute enormously to our revenues as well as creating jobs and making the UK an attractive place to do business. However, we should never forget that the crash was a banking crisis, and the thought of politicians—not just the UK Government of the day, but Governments throughout the world—was not that they had spent too much or invested too much in schools, hospitals, teachers, dinner ladies, nurses and doctors, but that the regulatory regime that oversaw financial services was inadequate for the practices of the time. A corrosive greed took hold on Wall Street and in the City and the vast majority of people paid the price.

[David Linden (Glasgow East) (SNP)]

The hon. Gentleman is being generous with his time. He mentioned powerful financial centres, including Glasgow and Edinburgh. Does he agree with my colleagues and me that the Government’s reckless approach to Brexit is deeply damaging and will cause grave effects in cities such as Glasgow and Edinburgh?

[Wes Streeting]

I certainly agree with the hon. Gentleman. I shall come to his point, in the context of the motions and the extent to which they are insufficient to deal with the structural economic problems and the economic outlook faced by the country.

Summer Adjournment

David Linden Excerpts

Thursday 20th July 2017 Commons Chamber

[David Linden (Glasgow East) (SNP)]

I echo the comments of the hon. Member for Redditch (Rachel Maclean) about the warm welcome that has been extended to new Members. I pay particular tribute to our staff in the SNP Whips Office, who have supported me in my meteoric rise to deputy assistant junior Whip.

I want to mention the proposed closures of Parkhead and Easterhouse jobcentres within my Glasgow East constituency. These proposed closures are ill-thought-out and will have a deeply damaging impact on some of the most vulnerable communities in Glasgow’s east end where access to transport and digital connectivity are major barriers. Ministers on the Treasury Bench would do well to come to Glasgow and see for themselves the havoc that these proposals would cause to an already fragile community. My main subject today is a difficult and deeply upsetting one. I must confess, I even thought twice about whether to speak about it at all, but it is incumbent on me to speak up because those who I want to speak for cannot speak up for themselves. They are the children and babies with life-threatening and life-limiting conditions, children who never live long enough to go to nursery or school.

Many right hon. and hon. Members will have experienced the joy of becoming a parent. Most, if they are lucky, will have a trouble-free pregnancy and a safe delivery. Some of us have gone through a difficult pregnancy, and the child is born prematurely or in dangerous circumstances. My own son Isaac was born prematurely and spent the first two weeks of his life in an intensive care and special care unit. We are indebted to the staff at NHS Greater Glasgow and Clyde for all of the care, love and support they provided to him during that time.

Isaac eventually left hospital, and he is a happy, if cheeky, little boy. However, on or before birth, some parents have to face the sobering, tragic reality that they will outlive their children, which is utterly unimaginable, yet, sadly, a reality for the families of approximately 50,000 children on these islands.

In preparing for this debate, I was incredibly grateful to my constituent and friend, Louise Gillan from Springboig, who shared with me her personal experience of having a child with complex health needs. Her daughter, Erin, was diagnosed with a rare condition at the age of two.

Across the UK, there is a mixed picture when it comes to the funding of children’s palliative care. Together for Short Lives quite rightly wants the UK Government to follow the lead of the Scottish Government, who have allocated £30 million over five years to children’s hospices, so that there is parity of funding with adult hospices. Children in England, Wales and Northern Ireland deserve the same recognition, opportunity and support as those in Scotland.

At this juncture, I want to pay tribute to the hon. Members for Colchester (Will Quince) and for Eddisbury (Antoinette Sandbach) for speaking so personally and movingly about their own experiences of being bereaved of a child. The hon. Gentleman did excellent work in the last Parliament to build interest and momentum around the concept of parental bereavement leave, which both Labour and the Conservatives included in their election manifestos. I am pleased that, in the past 24 hours, the Government have committed to introducing bereavement leave and supporting the private Member’s Bill of the hon. Member for Thirsk and Malton (Kevin Hollinrake).

The main issue I want to raise today is the cruel anomaly of not paying the mobility component of Disability Living Allowance for children under three years old. This has been dubbed the baby benefit bar. Children under three with life-shortening conditions often depend on ventilators and large equipment to stay alive. Some babies and children have permanent wheelchairs, as they are not able to use buggies suitable for well children of the same age. The wheelchairs are heavy because of the equipment needed to secure them to a vehicle.

All this leads me to conclude that exclusion from the mobility component of DLA is as inherently unfair as it is illogical. Calling on the UK Government to include the under threes in the mobility component of DLA is a small ask, but it is one that could enormously support and transform the lives of the families of children with short lives. These additional mobility needs are already recognised in other areas of Government policy. Children under three who depend on bulky medical equipment, or need to be near their vehicle in case they need emergency medical treatment, are already eligible for a blue parking badge, so excluding them from the DLA component is clearly an anomaly.

What we are talking about here is the difference of just £58 a week, which is a drop in the ocean for the Government when we consider just how few families this will affect, but it will have the potential to move some of those families away from unnecessary poverty.

I want to share with the House this testimony from a parent of a child receiving palliative care. They told us:

“My daughter has had a tracheotomy with a ventilator attached 24/7 since the age of eight months. She needs these for an undiagnosed neuromuscular condition. She cannot support herself at all. Carrying her, her vent, her suction machine, her oxygen, her emergency equipment to our car and back for two years was extremely difficult. We ended up selling our family car and purchasing a wheelchair accessible vehicle privately as it just became too hard to carry her as she grew.”

Time is not on the side of these families. The best that we can do is to be on their side.

Balancing the Public Finances

David Linden Excerpts

Tuesday 11th July 2017 Westminster Hall

[Mr Harper]

My hon. Friend makes a good point. As we are going to leave the European Union, we want to be more global and outward-looking and we want more companies to locate in Britain, so it seems to me that this is exactly the wrong time—if there ever is a good time—to increase corporate tax rates.

[David Linden (Glasgow East) (SNP)]

The right hon. Gentleman talks about the importance of what this Government have done for young people, but can he tell us how many people in the figure he mentioned are on exploitative zero-hours contracts? If the Government are so passionate about young people, why will they not pay them a real living wage? Why are they discriminating against the under-25s?

[Mr Harper]

I am glad that the hon. Gentleman raises zero-hours contracts. It simply is not true that everyone on a zero-hours contract is being exploited. There is some good evidence from the Chartered Institute of Personnel and Development. I am not sure whether these data have been updated, but it did a survey in 2014 that showed that around 63% of people on a zero-hours contract—higher than the proportion of people on a permanent full-time contract—were satisfied with their terms and conditions. Most people on zero-hours contracts actually find that they fit their requirements, because they are either students or people with caring responsibilities.

There are of course people who would prefer not to be on a zero-hours contract. That is why I welcome Matthew Taylor’s review, which was published today. He thinks that employees should have the right to ask their company to put them on a permanent contract. Indeed, McDonalds recently offered that to its employees. It is true that some of its staff on flexible contracts said that they would prefer to move to a fixed-term contract, but about 80% preferred to stay on a flexible contract because it suited them. I just do not agree with the contention that a zero-hours contract is by definition exploitative. In many cases, it suits the worker and it suits the business—it is a win-win. But it is completely true that if such contracts do not suit people, it is better that they should have the opportunity to move to a full-time or permanent contract to guarantee them hours. I am pleased with Matthew Taylor’s report.

My final point about youth unemployment concerns what happens to young people’s opportunities in countries that do not deal with their public finances. The most obvious example is Greece, which clearly has not dealt with its public finances, where 47%—nearly half—of young people are without work. Countries that do not deal with their public finances damage young people’s opportunities, probably for their lifetime. I do not want us to go down that road and be that sort of country; I want us to keep focused on balancing the public finances.

There is an interesting factor relevant to my constituency. I looked at a debate in the House in 1983, in which my predecessor but two, Paul Marland, spoke. He pointed out that at that time unemployment in his constituency was 15.3%, which was 2% above the national average. I am pleased that, seven years into a Conservative Government, unemployment in my constituency is 1.6%, which is below the average for the south-west—1.7%—and below the United Kingdom average. Our economic record has not just delivered for the United Kingdom and for the south-west; it has absolutely delivered for my constituents, who now have the opportunity to be in work, which is important for their families.

--- Later in debate ---

[David Linden (Glasgow East) (SNP)]

It is a pleasure to serve under your chairmanship, Ms Ryan. I congratulate the right hon. Member for Forest of Dean (Mr Harper) on securing this debate. It was somewhat mischievous of him to comment on one side of the Chamber being empty—interestingly, the Government side was empty last week when we were debating WASPI women.

For far too long, balancing the public finances has generally been done on the backs of the poorest and most vulnerable in our society.

[Rachel Maclean (Redditch) (Con)]

Will the hon. Gentleman give way?

[David Linden]

I will not, because Members have taken quite a long time. Despite several years of austerity, Her Majesty’s Government continue to miss their targets on debt, deficit and borrowing. Quite simply, austerity has failed to rebalance our public finances, and we need to reassess and re-evaluate our approach.

The biggest contributor to a sluggish UK economy and the biggest threat to our public finances is the reckless hard Brexit currently being pursued by Her Majesty’s Government. That has not been helped by Labour Members voting to give the Prime Minister a blank cheque by voting against single market membership only two weeks ago.

Scottish National party Members will continue to stand up not only for access to but membership of the single market and customs union. When we look at our public finances, we see a major trade deficit, which in the three months to April was £8.6 billion, up from £6.9 billion in the previous quarter. By turning our back on the single market and pursuing a hard Brexit, we risk delivering further shocks to our already precarious economy.

The UK economy grew by just 0.2% in quarter 1 of this year. In comparison, in the same quarter Scotland’s economy grew four times faster. That was somewhat of a surprise, not least because colleagues in the Scottish Conservative party were briefing last week that Scotland was about to move into recession, which certainly did not happen.

We face difficult financial decisions in Scotland, not least because Scotland’s budget faces a real-terms cut of £2.9 billion due to UK austerity. That figure of £2.9 billion is significant, because had Barnett consequentials been followed during the Government’s grubby deal with the Democratic Unionist party, Scotland would have stood to receive £2.9 billion.

I want to move on and to some of my concerns about the deeply worrying consequences posed for Scotland by a hard Brexit. The stark reality is that Brexit threatens to cost the economy around £11 billion by 2030 and result in 80,000 fewer jobs compared with remaining within the EU. We understand and accept that, despite 62% of Scots voting to remain in the EU, we are leaving. However, the Scottish Government have sought to be reasonable and amicable, and have come forward with a compromise that would allow Scotland to remain within the single market. Unfortunately, those pleas have fallen on deaf ears.

We know that Her Majesty’s Government are pursuing a reckless approach to the economy, with a hard Brexit coupled to an ideologically driven obsession with austerity. SNP Members believe it does not have to be like that. Cuts are a choice, not a necessity. During the recent general election campaign, we put forward a responsible and credible fiscal plan that would return a balanced budget by the end of the Parliament. However, in doing so, we would generate an additional £118 billion cumulatively over the next Parliament, with around £10 billion flowing to Scotland. Our fiscal plan would stabilise net borrowing at the level it was before the financial crash and see debt begin to fall as a share of GDP from 2019-20.

Ministers and Conservative Members regularly tell us how employment is high under this Conservative Government. What they do not say is that much of that is due to part-time work or, worse still, exploitative zero-hours contracts. Unstable and low pay is a worry for my constituents in the east end of Glasgow, with the Resolution Foundation estimating that the period 2011-2020 will be the worst decade for wage growth in 210 years. That is before we take into account the Government’s con trick of the living wage, which will actively discriminate against under-25s.

[Luke Graham (Ochil and South Perthshire) (Con)]

Will the hon. Gentleman give way?

[David Linden]

I will not, because of time pressures.

Austerity strangles the lifeblood out of an economy by exacerbating inequality. The Government’s tax and welfare reforms disproportionately affect the least well-off. Charities have warned that current planned welfare cuts are set to drive a potential fall in incomes of 10% for the poorest third of working-age households and a rise in inequality not seen since the 1980s.

[Mr Harper]

Will the hon. Gentleman give way?

[David Linden]

In conclusion, let us have a debate about balancing public finances but let us be serious and not balance the public finances on the backs of the poorest and most vulnerable.

[Several hon. Members rose—]