Oral Answers to Questions

Edward Miliband Excerpts

Wednesday 4th February 2015 Commons Chamber

[The Prime Minister]

My right hon. Friend is absolutely right. The coalition’s university policy was a long-term policy which has resulted in a record number of students going to university, as well as an increase in the number of university students from the poorest backgrounds. That is good for our country, good for students, and good for universities. What a contrast with Labour Members, who told us four years ago that they were going to get rid of tuition fees and who, four years later, have absolutely nothing to say about it. When will they make up their minds?

[Edward Miliband (Doncaster North) (Lab)]

I join the Prime Minister in condemning the appalling murders of the Jordanian pilot and the Japanese hostages by ISIL. These were sickening and despicable acts, and simply reinforce our determination to defeat that evil organisation.

Everyone pays stamp duty on stock market transactions except those involved in hedge funds, who are allowed to avoid it. That is costing many hundreds of millions of pounds. Why is the Prime Minister refusing to act?

[The Prime Minister]

I have to say that for 13 years, during many of which the right hon. Gentleman was in the Treasury, they did absolutely nothing about this. What this Government have done is more than any previous Government to make sure that individuals and companies pay their taxes properly. I have to say I am delighted that he has raised the economy on the morning after his shadow Chancellor could not name one single business leader who backed Labour.

[Edward Miliband]

This is Prime Minister’s questions and the Prime Minister should try to answer the question. I asked him a very specific question about why hedge funds are not paying stamp duty on stock market transactions. It is costing hundreds of millions of pounds. He is being funded to the tune of £47 million by the hedge funds. Everyone knows that is why he is refusing to act, but what is his explanation?

[The Prime Minister]

Let me just remind the right hon. Gentleman that when we came into office foreigners did not pay stamp duty on the properties they bought, foreigners did not pay capital gains tax on the properties they bought, and because of his tax rates City hedge fund managers were paying lower tax rates than the people who cleaned their offices. That is what we had to sort out. But let me put it to him again: the day after his shadow Chancellor was asked on television whether he could think of one single business leader, do you know what he said, Mr Speaker? He said, “Bill Somebody”! Bill Somebody is not a person—Bill Somebody is Labour’s policy.

[Edward Miliband]

I will tell the Prime Minister what people on the Opposition Benches are doing: we are standing up for hard-working families and businesses while he is a friend of the tax avoiders. I am going to keep asking him the question until he answers it. It is a very specific question about hedge funds avoiding stamp duty on their share transactions. It is costing hundreds of millions of pounds. He is bankrolled by the hedge funds. He claims he wants to act on tax avoidance. Why will he not act?

[The Prime Minister]

If the right hon. Gentleman has a good submission for the Budget, he can talk to the Chancellor about it. He says what they are doing on his side of the House. Let me tell him what he has been doing on his side of the House: two former Labour Health Secretaries completely condemned his health policy; all the leading university vice-chancellors condemned his university policy; and he cannot find one single business leader to back his economic policy. Is it any wonder that the Chuckle Brothers have lodged an official complaint and said they do not want to be compared to the two clowns opposite?

[Edward Miliband]

I am afraid I am going to keep asking the question until the Prime Minister has an answer. Let me explain it to him. [Interruption.] You can’t help him George; you’re too far away. Let me explain it to him very simply. Everybody pays stamp duty on their share transactions. [Interruption.]

[Mr Speaker]

Order. I apologise for interrupting. The questions and the answers will be heard. This is a democratic Chamber and no one, but no one, is going to be shouted down. The point is very simple and very obvious, and I hope everyone can grasp it.

[Edward Miliband]

Let me explain it to the right hon. Gentleman very simply. Everybody pays stamp duty on their share transactions, but the hedge funds are protected. We have been calling for action on this. It could raise hundreds of millions of pounds. Why will he not act?

[The Prime Minister]

We have acted on stamp duty. We will continue to act on stamp duty, but the right hon. Gentleman sat for 13 years in the Treasury and never did anything about it. If he wants to make sure that he acts on tax avoidance and evasion, why does he not start with Labour’s biggest donor, Mr John Mills— yes, we all remember this—who gave his donation in shares in order to cut his tax bill? Has he paid back the taxes yet?

[Edward Miliband]

I am really pleased the Prime Minister wants to talk about donors. Let us talk about his donors: £7 million—[Interruption.]

[Mr Speaker]

Order. The question will be heard. It is a very simple point. I have had to make it a second time, and I will make it as many times as necessary: the right hon. Gentleman will be heard.

[Edward Miliband]

I was talking about the Prime Minister’s donors, Mr Speaker: £7 million from Lord Laidlaw, a tax exile living in Monaco; £3 million from Michael Hintze with a company based in Jersey; and Michael Spencer, who gave him £4 million, involved in the LIBOR scandal. Same old Tories.

Now, let us give the Prime Minister a fifth chance. I know he does not do his homework, but this is his fifth chance. The hedge funds are avoiding tax to the tune of hundreds of millions of pounds. Will he now promise, from that Dispatch Box, to act for the national health service?

[The Prime Minister]

We had Labour for 13 years: no action on stamp duty, foreigners not paying stamp duty, foreigners not paying capital gains tax, no bank levy. The right hon. Gentleman talks about tax exiles: Andrew Rosenfeld, the man who raises his money, was for years a tax exile living in Geneva. That is what we get. But is it any wonder the right hon. Gentleman wants to find one particular issue to raise today? He cannot talk about minimum wages because his policy is to cut them, he cannot talk about energy prices because his policy is to keep them up, he cannot talk about universities because his policy is to trash them, and he cannot name a single business leader who supports Labour. No wonder the person who wrote “Things can only get better” says it no longer applies to Labour.

[Edward Miliband]

So basically, the right hon. Gentleman has been found out: five chances to answer the question, no answer coming. Let us close that tax loophole so we can have more doctors, more nurses, more care workers and more midwives. This is the difference: this is a Prime Minister who will not tackle tax avoidance for the simple reason that too many of his friends would get caught in the net. They are the party of Mayfair hedge funds and Monaco tax avoiders, and under him you always know that it is one rule for those at the top and another rule for everyone else.

[The Prime Minister]

There is only one person who has been found out this week and that is the leader of the Labour party: his economic policy has collapsed; his health policy has collapsed; his universities policy has collapsed. The most vital election in a generation is coming, and people can see the choice: a Labour party that is anti-enterprise, anti-business and that is falling apart under scrutiny, and a Conservative party turning this country around. That is the choice: competence from us, chaos from them.