Budget Resolutions

Baroness Laing of Elderslie Excerpts

1st reading: House of Commons
Tuesday 28th November 2017 Commons Chamber

[Ruth George]

In spite of what the right hon. and learned Gentleman just said, I wonder whether he agrees with the organisation Full Fact, which says that for most of Labour’s last term in office public sector national debt was down and that it was 36% in 2008-09. Yes, it then went up to 65% in 2009-10, but that was as a result of the global economic crash and the subsequent recession, which happened globally.

[Madam Deputy Speaker (Mrs Eleanor Laing)]

Order. This is not a speech.

[Mr Clarke]

In its period of office, the Labour party was so out of control and so wrong in its reaction to events that early on it almost started to repay the national debt at the time of the dotcom boom, which boosted tax revenues to an extraordinary extent. The Labour Government found that their tax revenues had been boosted for reasons that they did not properly analyse, and they just carried on borrowing on top of that. The figures looked quite respectable until suddenly the floor fell away. There was the credit crunch. Down went the tax revenues. They were left exposed, with an accumulation of errors that led to the soaring deficit and the soaring debt that are a burden on us now and will be a burden for our children.

--- Later in debate ---

[Several hon. Members rose—]

[Madam Deputy Speaker (Mrs Eleanor Laing)]

Order. The House is obviously aware that a great many people wish to speak and there is limited time, so we will begin with a time limit of seven minutes.

--- Later in debate ---

[Several hon. Members rose—]

[Madam Deputy Speaker (Mrs Eleanor Laing)]

Order. I must now reduce the speaking limit to four minutes.

--- Later in debate ---

[Mr Jim Cunningham (Coventry South) (Lab)]

This is a Budget from a Government who have run out of ideas and are lacking in imagination. They heralded it as a Budget that will help everyone, but nothing in this Budget will help ordinary working people. In seven years under this Government, we have seen wages fall, and they are now lower than they were in 2010. Personal debt levels are rising, and with interest rates starting to rise we are heading for a massive problem. There has not been nearly enough progress in closing the gender, race and disability pay gaps—that is simply unacceptable. Britain is meant to be the sixth largest economy, yet public and business investment is among some of the lowest in advanced countries. We are also seeing low productivity.

On Brexit, there is uncertainty in all sections of society because of the shambolic negotiations that we have seen so far. The OBR’s downgrading of economic growth and productivity make for bleak reading, and we seem to have a Government who have refused to learn from their mistakes. They cannot even hit targets they set for themselves; they promised to eradicate the deficit by 2015, 2016 and 2017, and now they have pushed it back to 2020 and probably beyond.

Coventry and the west midlands stand to lose out hundreds of millions of pounds in EU structural funding after Brexit. This Government’s policies and, in particular, this Budget do not do enough to stimulate investment and growth and to help replace the funding that will be lost. The Government are not building a strong economy and they certainly are not leading the way for Britain to remain a major world player.

The Budget does nothing to help ordinary people who are struggling up and down the country. The national living wage has been revised down, so it will not reach £9 by 2020, as previously promised, and the Government are persisting with the horrendous roll-out of universal credit, instead of pausing the roll-out to allow the system to be improved. The Chancellor’s offer of help will not help people enough, as it is only a fraction of the £3 billion a year cuts they have made to this scheme. Only £1 of every £10 cut has been put back, and that just is not enough to help vulnerable people. More than 100,000 people in Coventry have used a food bank in the past few years—that is unacceptable in 2017. These changes are made worse because they are being implemented alongside jobcentre closures, and the services on offer are also being privatised. The Government are removing jobs and services from parts of the country that need them the most, including Coventry. That will have long-lasting repercussions

The housing crisis has not been addressed either. Last year, fewer than 6,000 social houses were built, and that is simply unsustainably low. The Government pledged to build 300,000 homes by the mid-2020s, but houses are needed now—not just any houses, but affordable houses that help first-time buyers. The OBR said that the stamp duty cut would actually end up raising house prices, so this is yet another policy that has not been thought out.

Despite being a key issue during the recent general election, and despite it being a sector in desperate need of investment, there was, shockingly, absolutely no mention of social care in the Budget. Local government services in Coventry continue to have funding slashed, and there is no additional money for the police or fire services, making provision of vital services more and more impossible.

The NHS has again—[Interruption.]

[Madam Deputy Speaker (Mrs Eleanor Laing)]

Order. I was going to let the hon. Gentleman finish his sentence.

[Mr Cunningham]

I will finish there, Madam Deputy Speaker.

Finance (No. 2) Bill

Baroness Laing of Elderslie Excerpts

2nd reading: House of Commons
Monday 11th December 2017 Commons Chamber

[Gareth Thomas]

Speech!

[Madam Deputy Speaker (Mrs Eleanor Laing)]

Order.

[Gareth Thomas]

I beg your pardon, Madam Deputy Speaker.

[Madam Deputy Speaker]

I am very pleased that the hon. Gentleman—from a sedentary position, which he is not allowed to do—has apologised. If the Minister was making an intervention that was too long, I would stop him so doing. I have allowed the hon. Gentleman and several other Members to make fairly long interventions because I thought we were having a meaningful debate, but we will not have shouting from a sedentary position. I will allow the Minister to finish his intervention.

--- Later in debate ---

[Several hon. Members rose—]

[Madam Deputy Speaker (Mrs Eleanor Laing)]

Order. The hon. Gentleman is not giving way.

[Peter Dowd]

Thank you, Madam Deputy Speaker.

Mind you, anything to avoid even more embarrassment for an enfeebled Prime Minister. Our stretched public services and crumbling infrastructure desperately need investment. We need bold, imaginative and innovative answers to tackle our slowing economic growth and falling productivity and to give workers the pay rise they deserve.

As my hon. Friend the Member for High Peak (Ruth George) said, since 2010 the Government have added more than £720 billion to the national debt, yet they have failed at every opportunity to invest. Instead, they have borrowed record amounts just to cover day-to-day spending. Labour Members are clear: it is high time the Government borrowed to invest in infrastructure, jobs and skills that will grow our economy sustainably. That is not controversial, no matter how much Conservative Members fulminate about it. [Interruption.] Well, they can simply ask the Secretary of State for Communities and Local Government, who wants to borrow £50 billion to solve the housing crisis. Where will that money come from?

If we asked any business owner, they would tell us that they borrow to grow their business and, in so doing, they reap the rewards. They do not borrow to pay the day-to-day bills, as the Government have done, year after year. They borrow to invest—an alien concept to the Government. If this clapped-out Government are unwilling to invest in our people and our nation, its talent and its entrepreneurial spirit, I assure the Minister that the next Labour Government will.

We will invest in infrastructure across every region and nation to create high-wage, high-productivity jobs and start a large-scale house building programme, backed up with controls on rent. We will tackle debt, introducing further controls on high-interest, short-term lending, and we will scrap tuition fees.

While we are at it, we will lift for the whole of the public sector the public sector pay cap that has so damaged the morale of our staff in vital services. We will fix universal credit and put the compassion that the Government have sucked out back into our social security system. We will introduce a £10-an-hour real living wage that people can live off, not get by on. In doing all that, we will ensure that people in every region and nation, in every community and age group, have a Government that listen, act and ensure well-paid jobs, roofs over their heads and an economy that works for the many, not the few.

--- Later in debate ---

[Several hon. Members rose—]

[Madam Deputy Speaker (Mrs Eleanor Laing)]

Order. Before we proceed, let me enlighten those Members who might not be aware that, because this is a Finance Bill, the debate may continue “until any hour”, as they will see on the Order Paper. There is no limit on today’s debate. Approximately 18 people have indicated to me that they wish to speak, and if they each take about 15 minutes, they will be able to calculate for themselves that we will be here until around midnight. Now, it might be their intention to cause that to happen, and it is not for me to say whether that is a good or a bad idea—I am always in favour of debates—but I merely point this out so that Members can behave honourably and with due consideration to other Members, and work out for themselves for just how long they ought to keep the Floor. This puts a lot of pressure on Mr Alister Jack.

--- Later in debate ---

[Stephen Kerr]

Does my hon. Friend agree that this was all designed in order to create a grievance—

[Madam Deputy Speaker (Mrs Eleanor Laing)]

Order. I do not like to interrupt the hon. Gentleman, and I let him do this earlier, but if he faces away from the Chair, no one can hear him. I certainly cannot hear him. He has to speak to the Chair, and not to the Member upon whom he is intervening. But I am sorry—I interrupted him, so I will allow him to finish his intervention.

[Stephen Kerr]

Thank you, Madam Deputy Speaker. I had in fact finished my intervention, in which I asked my hon. Friend whether he felt that this was a designed grievance-manufacturing moment for the SNP.

Finance (No. 2) Bill

Baroness Laing of Elderslie Excerpts

Committee: 1st sitting: House of Commons
Monday 18th December 2017 Commons Chamber

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

[The First Deputy Chairman of Ways and Means (Mrs Eleanor Laing)]

With this it will be convenient to discuss the following:

Amendment 1, in schedule 9, page 132, line 32, leave out from “in” to end of line 33 and insert

“accordance with the provisions of section (bank levy: Part 1 of Schedule 9: pre-commencement requirements)”.

This amendment paves the way for NC3.

New clause 1—Review of operation and effectiveness of bank levy—

“(1) Schedule 19 to FA 2011 (bank levy) is amended as follows.

(2) After paragraph 81, insert—

Part 10

Review

82 (1) Within six months of the passing of the Finance Act 2018, the Chancellor of the Exchequer shall undertake a review of the operation and effectiveness of the bank levy.

(2) The review shall consider in particular—

(a) the effectiveness of the levy in reflecting risks to the financial system and the wider UK economy arising from the banking sector,

(b) the effectiveness of the levy in encouraging banks to move away from riskier funding models,

(c) the revenue effects of the changes to the levy made in Schedule 2 to the Finance (No. 2) Act 2015,

(d) the effectiveness of the anti-avoidance provisions in paragraphs 47 and 48 of this Schedule.

(3) A review shall also compare the effects of the bank levy with those of the bank payroll tax (within the meaning given by Schedule 2 to the Finance Act 2010) in relation to—

(a) revenue, and

(b) the matters specified in sub-paragraph (2)(a) and (b).

(4) A report of the review under this paragraph shall be laid before the House of Commons within one calendar month of its completion.””

This new clause requires the Government to carry out a review of the bank levy, including its effectiveness in relation to its stated aims, the revenue effects of the changes made in 2015 and the comparable effectiveness of the bank payroll tax.

New clause 2—Public register of entities paying the bank levy and payments made—

“(1) Schedule 19 to FA 2011 (bank levy) is amended as follows.

(2) After paragraph 81, insert—

Part 11

Public register of payments

83 (1) It shall be the duty of the Commissioners for Her Majesty’s Revenue and Customs to maintain a public register of groups paying the bank levy and the amounts paid.

(2) In relation to each group, the register shall state whether it is—

(a) a UK banking group,

(b) a building society group,

(c) a foreign banking group, or

(d) a relevant non-banking group.

(3) In relation to each group, the register shall state the amount paid in respect of each chargeable period.

(4) In relation to chargeable periods ending between 28 February 2011 and 31 December 2017, the Commissioners must public the register no later than 31 October 2018.

(5) In respect of subsequent chargeable periods, the Commissioners must public the updated register no later than ten months after the end of the chargeable period.””

This new clause requires HMRC to prepare a public register of banks paying the bank levy and the amount they have paid.

New clause 3—Bank levy: Part 1 of Schedule 9: pre-commencement requirements—

“(1) Part 1 of Schedule 9 shall come into force in accordance with the provisions of this section.

(2) No later than 31 October 2020, the Chancellor of the Exchequer shall lay before the House of Commons an account of the effects of the proposed changes in Part 1 of Schedule 9—

(a) on the public revenue,

(b) in reflecting risks to the financial system and the wider UK economy arising from the banking sector, and

(c) in encouraging banks to move away from riskier funding models.

(3) Part 1 of Schedule 9 shall have effect in relation to chargeable periods ending on or after 1 January 2021 if, no earlier than 30 November 2020, the House of Commons comes to a resolution to that effect.”

This new clause requires the Government to provide a separate analysis of the impact of Part 1 of Schedule 9 nearer to the time of proposed implementation in 2021 and to seek the separate agreement of the House of Commons to commencement in the light of that review.

New clause 11—Review of effects of bank levy on inclusive growth and equality—

“(1) Schedule 19 to FA 2011 (bank levy) is amended as follows.

(2) After paragraph 81, insert—

Part 10

Review on inclusive growth and equality

82 (1) Within six months of the passing of the Finance Act 2018, the Chancellor of the Exchequer shall undertake a review of the bank levy.

(2) The review shall consider in particular—

(a) the effects of the levy on inclusive growth,

(b) the impact of the levy on equality.

(3) A report of the review under this paragraph shall be laid before the House of Commons within one calendar month of its completion.””

This new clause requires the Government to carry out a review of the bank levy, including its effects on inclusive growth and inequality.

[The Financial Secretary to the Treasury (Mel Stride)]

The Finance Bill makes changes to the bank levy, in particular restricting its scope to UK activities. These changes support our vision to help keep UK banks globally competitive. They reflect improvements in international banking regulation that reduce the risk of overseas operations to the UK, and they complete a set of changes announced in 2015 and 2016 that significantly increase the tax we raise from our banks.

Let me be clear from the outset that this Government believe that banks should make a significant contribution to the public finances, beyond general business taxation, that reflects the risk they pose to the UK economy. That has been the record of Chancellors since 2010. As part of that, in 2011 the Government introduced the bank levy on the balance sheet equity and liabilities of banks and building societies, but this additional tax contribution made by banks has to support our broader objectives for the sector. It therefore needs to be responsive to international commercial and regulatory changes in banking. Any tax changes should ensure that we can continue to secure the additional contribution from the banks from a sustainable tax base, and they also need to ensure we retain a strong, stable and competitive banking sector that supports the wider economy by lending capital to both businesses and individuals.

Finance (No. 2) Bill

Baroness Laing of Elderslie Excerpts

Committee: 2nd sitting: House of Commons
Tuesday 19th December 2017 Commons Chamber

[Dawn Butler (Brent Central) (Lab)]

I beg to move, That the clause be read a Second time.

[The Temporary Chair (Mrs Eleanor Laing)]

With this it will be convenient to discuss the following:

New clause 7—Equality impact analyses of provisions of this Act (No. 2)—

‘(1) The Office for Budget Responsibility must review the equality impact of the provisions of this Act in accordance with this section within six months of the passing of this Act.

(2) A review under this section must consider—

(a) the impact of those provisions on households at different levels of income,

(b) the impact of those provisions on people with protected characteristics (within the meaning of the Equality Act 2010),

(c) the impact of those provisions on the Treasury’s compliance with the public sector equality duty under section 149 of the Equality Act 2010, and

(d) the impact of those provisions on equality in different parts of the United Kingdom and different regions of England.

(3) A review under this section must give a separate analysis in relation to the following matters—

(a) income tax (in sections 1 and 3 to 6),

(b) employment (in sections 7 to 10),

(c) disguised remuneration (in sections 11 and 12 and Schedules 1 and 2),

(d) pension schemes (in section 13 and Schedule 3),

(e) investments (in sections 14 to 17 and Schedules 4 to 5),

(f) corporation tax and other aspects of business taxation (in sections 2, 19 to 32, 36 and 37 and Schedules 7 and 8),

(g) the bank levy (in section 33 and Schedule 9),

(h) settlements (in section 35 and Schedule 10),

(i) stamp duty land tax (in sections 40 and 41 and Schedule 11),

(j) air passenger duty (in section 43),

(k) vehicle excise duty (in section 44), and

(l) tobacco products duty (in section 45).

(4) In this section—

“parts of the United Kingdom” means—

(a) England,

(b) Scotland,

(c) Wales, and

(d) Northern Ireland;

“regions of England” has the same meaning as that used by the Office for National Statistics.

(5) The Chancellor of the Exchequer must lay before the House of Commons the report of the review under this section as soon as practicable after its completion.” .

This new clause requires the Office for Budget Responsibility to carry out a review of the effects of the provisions of the Bill on equality in relation to households with different levels of income, people with protected characteristics, the Treasury’s public sector equality duty and on a regional basis.

[Dawn Butler]

New clause 6 stands in the name of my right hon. Friend the Leader of the Opposition and those of other Members on both sides of the House. The aim of both new clauses is basically to help the Government. We want them to set an example to every Department and public sector organisation by fulfilling their own obligation under the public sector equality duty and publishing a meaningful equality impact assessment. The equality duty covers nine protected characteristics: age, disability, gender reassignment, pregnancy, maternity, race, religion or belief, sex and sexual orientation.

The Prime Minister says that she understands the problems faced by members of protected groups and that her Government are committed to tackling inequality in the ways set out in the equality duty, but one thing confuses me. If she understands all that, why does she allow her policies to undermine and hurt women and other groups with protected characteristics? Such “words over deeds” undermine people’s trust in politics and politicians.

How can I be sure that the Prime Minister knows these problems so well? There have been two stand-out moments. The first was in 2010, when the Prime Minister said:

“there are real risks that women, ethnic minorities, disabled people and older people will be disproportionately affected by proposed cuts to public spending.”

The second was when she said, on the steps of No. 10, that she wanted to tackle the “burning injustices” in our society. But all that she has done is make things worse. She has added fuel to the fire, and those injustices now burn brighter than ever. The Chancellor said that this Budget would be full of new opportunities—for whom? He failed to address the position of women born in the 1950s, violence against women and girls, the crisis in social care, falling wages, and a social security system that is leaving millions of children in poverty.

I am sure that the Minister will disagree with some of what I am saying, but let me challenge him. This is his opportunity—his moment—to carry out a comprehensive equality impact assessment, publish it, and prove me wrong.

Finance (No. 2) Bill

Baroness Laing of Elderslie Excerpts

3rd reading: House of Commons & Report stage: House of Commons
Wednesday 21st February 2018 Commons Chamber

[Madam Deputy Speaker (Mrs Eleanor Laing)]

I call Peter Dowd.

[Peter Dowd]

Very little that I have heard from the other side in this debate has convinced me that we should withdraw our new clause—

--- Later in debate ---

[Madam Deputy Speaker]

Order. I beg the hon. Gentleman’s pardon. I have made a mistake, in that I thought the Minister had already addressed the House on this group. I also beg the Minister’s pardon.

[Mel Stride]

There was a ripple of dissatisfaction when you failed to call me to speak, Madam Deputy Speaker, but it was almost imperceptible. Thank you for correcting your error.

In this debate we have heard about a range of issues, including the changes the Finance Bill makes to the bank levy, the taxation of private finance initiatives, and tax avoidance and evasion. I will respond to each in turn, starting with the bank levy. Opposition Members have raised a number of objections to the changes to the levy made by the Finance Bill and to the Government’s broader approach to bank taxation. These are unjustified. This Government remain committed to ensuring that banks make an appropriate additional tax contribution, beyond that paid by other businesses, that reflects the unique risks they pose to the UK financial system and to the wider economy.

I shall address some of the arguments put forward by the shadow Chief Secretary to the Treasury, the hon. Member for Bootle (Peter Dowd), which I felt focused far too much on the bank levy. It is indeed declining, but there is good reason for that. In 2015, when we took the relevant decisions on this, we recognised that the risks presented by our banks had eased quite considerably. Indeed, the Bank of England has recently carried out rigorous stress testing on the banks, and that was the first occasion on which not a single bank failed its stress test. That is indicative of the fact that one of the raisons d’être for the bank levy has started to recede. That is to say that the banks are less of a risk than they were before, and the charges on the assets and liabilities that they hold are therefore becoming less relevant. The hon. Gentleman did not focus so much on the surcharge to the banking tax, which came in from 1 January 2016 and which represents an additional 8% on the profitability of banks at the present time. Whereas corporations are paying 19%, we are now looking at a total rate of around 27% for banks.

--- Later in debate ---

[Anneliese Dodds]

I beg to move, That the clause be read a Second time.

[Madam Deputy Speaker (Mrs Eleanor Laing)]

With this it will be convenient to discuss the following:

New clause 8—Annual report on relief for first-time buyers—

“(1) The Chancellor of the Exchequer must prepare and lay before the House of Commons a report for each relevant period on the operation of the relief for first-time buyers introduced in Schedule 6ZA to FA 2003 not less than three months after the end of the relevant period.

(2) The report shall include, in particular, information in respect of the relevant period on—

(a) the number of first-time buyers benefiting from the relief,

(b) the number of purchases benefiting from the relief,

(c) the average age of first-time buyers benefiting from the relief,

(d) the effects on the operation of the private rented sector,

(e) the effects on council housing and other social housing,

(f) the effects on the supply of affordable housing, and

(g) the effects on the operation of collective investment schemes under Part 17 of the Financial Services and Markets Act 2000.

(3) For the purposes of this section, ‘relevant period’ means—

(a) the period from 22 November 2017 to 5 April 2018,

(b) each period of 12 months beginning on 6 April during which the relief is in effect, and

(c) the period beginning on 6 April and ending with the day on which the relief ceases to have effect.”

This new clause requires an annual report on the operation of the relief for first-time buyers, including information on the beneficiaries and effects on different aspects of housing supply.

New clause 2—Review of income tax revenue—

“(1) The Office for Budget Responsibility must review the revenue raised by the rates of income tax within six months of the passing of this Act.

(2) A review under this section must consider revenue raised by the rates of income tax specified in sections 3 and 4.

(3) A review under this section must also consider the effect on revenue of raising each of the rates of income tax specified in sections 3 and 4 by one percentage point.

(4) The Chancellor of the Exchequer must lay before the House of Commons the report of the review under this section as soon as practicable after its completion.”

This new clause provides for a review of the revenue raised at the rates of income tax specified by Clauses 3 and 4 of the Bill and the effect on revenue of raising each of those rates by one percentage point.

New clause 10—Review of retrospective VAT refunds for the Scottish Fire and Rescue Service and the Scottish Police Authority—

“(1) Within one month of this Act receiving Royal Assent, the Chancellor of the Exchequer shall commission a review of the potential consequences of allowing the Scottish Fire and Rescue Service and the Scottish Police Authority to claim VAT refunds under section 33 of VATA 1994 retrospective to the date of their establishment.

(2) The review shall consider—

(a) the administrative consequences of allowing retrospective claims, and

(b) the impact on revenue of allowing retrospective claims.

(3) The Chancellor of the Exchequer shall lay the report of this review before the House of Commons within six months of this Act receiving Royal Assent.”

This new clause would require the Chancellor of the Exchequer to commission a review into what the potential consequences of allowing the Scottish Fire and Rescue Service and the Scottish Police Authority to make retrospective claims for VAT refunds would be.

New clause 11—Analysis of effect of income tax rates on incentives into employment—

“(1) The Office for Budget Responsibility must review the impact of the rates of income tax specified in sections 3 and 4 in accordance with this section within six months of the passing of this Act.

(2) A review under this section must consider the impact of the rates of income tax specified in sections 3 and 4 on the incentives for individuals to seek employment, including—

(a) whether those rates create, or detract from, an incentive for those not employed to enter into employment,

(b) whether those rates create, or detract from, an incentive for those currently in employment entering into new employment at a different level of income, and

(c) to what degree those rates create, or detract from, any such incentive.

(3) A review under this section must also consider those rates in the context of—

(a) National Insurance contributions,

(b) tax credits, and

(c) social security benefits.

(4) A review under this section must give separate analyses in relation to the impact of the rates of income tax specified in sections 3 and 4 in different parts of the United Kingdom.

(5) In this section—

‘parts of the United Kingdom’ means—

(a) England,

(b) Scotland,

(c) Wales, and

(d) Northern Ireland.

(6) The Chancellor of the Exchequer must lay before the House of Commons the report of the review under this section as soon as practicable after its completion.”

Government amendments 6 to 8.

Amendment 10, in clause 44, page 38, line 30, at end insert—

“(4A) In paragraph 1GE (higher rates of duty) after paragraph (3)(c) insert—

‘(d) the vehicle is not a taxi.

(3A) For the purposes of this paragraph, ‘taxi’ has the same meaning as in section 64 of the Transport Act 1980.’”

Amendment 11, page 39, line 1, after “section”, insert

“(other than those made by subsection (4A)”.

Amendment 12, page 39, line 2, at end insert—

“(8) The amendments made by subsection (4A) have effect in relation to licences taken out on or after the day on which this Act is passed.”

Amendment 13, in schedule 3, page 65, line 32, leave out from “and” to “or” in line 36 and insert

“each of the conditions in subsection (1A) is met”.

This amendment, together with Amendment 14, provides that a pension scheme cannot be de-registered on grounds of the dormancy of a single company within the scheme, but only if conditions are met in relation to the date of first registration and the trading status of participating companies.

Amendment 14, page 65, line 37, at end insert—

“(4A) In section 158 (grounds for de-registration), after subsection (1), insert—

(1A) The conditions in this subsection are that—

(a) the scheme was registered in the current tax year or in the six preceding tax years,

(b) no sponsoring employer in relation to the scheme is a body corporate that is actively trading at the time that withdrawal is being considered, and

(c) no sponsoring employer in relation to the scheme is a body corporate that was actively trading for a period of at least twenty four months.”

See explanatory statement for Amendment 13.

Government amendment 9.

[Anneliese Dodds]

With permission, Madam Deputy Speaker, I will speak briefly to the SNP’s new clause 10 and to amendment 12, which was tabled by my hon. Friend the Member for Ilford North (Wes Streeting), both of which the Opposition support. I will then speak in more detail about our new clauses 7 and 8.

On new clause 10, Labour Members welcome the Government’s decision to allow the Scottish Fire and Rescue Service and the Scottish Police Authority to claim retrospective VAT refunds. The measures in the new clause follow the Scottish Government’s decision in 2012 to establish a nationwide fire and rescue service for Scotland. The then Treasury Minister, who is now the Justice Secretary, wrote:

“Based on the information currently available it seems that, following the Scottish government’s planned reforms, neither the new police authority nor the fire and rescue service will be eligible for VAT refunds under Section 33 of the VAT Act 1994.”

As colleagues will know, that Government decision meant that the Scottish police and fire services lost out on VAT refunds worth more than £30 million, with the Scottish police losing out on about £26 million. To some extent, I would argue it was a sign of recklessness that, at a time of austerity, the Government effectively left Scottish firefighters and police officers to fend for themselves. While Labour Members welcome the Government’s change of heart, we recognise the need for a proper process covering retrospective claims for VAT refunds.

The review proposed by the hon. Member for Aberdeen North (Kirsty Blackman) would ensure that the process for VAT refunds was transparent, and that the VAT claims of the Scottish Fire and Rescue Service and the Scottish Police Authority were properly refunded by the Government. The review would also ensure that such an ill-informed decision, backed up by insubstantial reasoning, would not be allowed to happen again. That is why we support the new clause.

Amendment 12 focuses on an issue that I raised in Committee: the fact that taxi drivers with a zero-emission capable vehicle will not be exempt from vehicle excise duty until next year. As we discussed in Committee—I am sure that the Minister remembers this—taxi drivers need to purchase their car over a long period due to its relatively high cost. In many areas of the country, taxi drivers are shifting to lower or zero-emission capable taxis. I asked the Minister whether further changes were needed to the Bill so that the take-up of zero-emission capable taxis would not be choked off. I was grateful to the Minister for stating that there would be a consultation on the new measures in the spring, but I do not know whether that consultation has yet begun, so perhaps the Minister will enlighten us on that point. In the meantime, it seems sensible, as my hon. Friend the Member for Ilford North proposes, to prevent taxi drivers from taking a hit when they have taken an environmentally friendly choice, which has considerable financial consequences for them because the vehicles are more expensive than standard taxis.

I now come on to Labour’s new clauses 7 and 8, which would require a review of the proposed relief on stamp duty for first-time buyers, followed by an annual report on the policy’s effectiveness. The review and the report would consider the impact of the new measure on house prices and housing supply, and cover who benefits from the policy. The need for such reviews is very clear. The Office for Budget Responsibility’s assessment of the measure is set out in black and white: it is likely to increase prices by 0.3% and benefit a very small number of people. In its words, the main gainers from the new stamp duty policy are people who already own property, not first-time buyers. It added that some potential first-time buyers with smaller deposits might now be able to borrow a little more, therefore allowing them to buy properties that they otherwise could not afford, but that the process would be more expensive. That is in the context in which the average price of a home in England for first-time buyers has gone up by almost £40,000 since 2010. In fact, only about 3,500 additional homes are predicted to be sold as a result of the new incentive.

--- Later in debate ---

[Anneliese Dodds]

No, I will not give way, because I think I have answered the point. As I say, it is very clear; the figures speak for themselves, very obviously, on this point. The point is particularly and disturbingly clear in relation to home ownership among under-45 households—so for younger people—where the number of homeowners has fallen by 1 million since 2010.

We had a debate earlier about home ownership, and the hon. Member for Faversham and Mid Kent (Helen Whately) stated, “It’s not just about home ownership. We need to think about other areas as well”. That is absolutely right. We have 1.3 million additional private renters in this country. Many on the Opposition Benches would not necessarily see that as a terrific thing; we would see it as lots of people stuck in private rented accommodation who do not want to be there, and we do not see measures in the Budget or Bill to deal with that problem.

[Madam Deputy Speaker (Mrs Eleanor Laing)]

Order.

[Anneliese Dodds]

If I can end—

[Madam Deputy Speaker]

Ah, I was about to draw to the hon. Lady’s attention the fact that we only have an hour for this debate, but she has already counted that.

[Anneliese Dodds]

Thank you, Madam Deputy Speaker. I do beg your pardon.

Let me end by quoting, very briefly, what I think was a devastating assessment of this policy by my hon. Friend the Member for Wirral South (Alison McGovern), because not every Member who is present now was present then. She said:

“what is really unpopular in our country is having to step over rough sleepers while walking home. What is really unpopular in our country is having to watch other parents taking paper into schools because our schools cannot even afford the basic necessities. And what is deeply unpopular in our country is watching the number of food banks grow because jobs do not pay enough.

People will remember that while all that was going on, the Tories were busy cutting stamp duty for people who could afford to buy houses. I do not think they will ever forget that.”—[Official Report, 18 December 2017; Vol. 633, c. 867.]