Finance (No. 2) Bill

Baroness Laing of Elderslie Excerpts

Committee stage
Wednesday 1st December 2021 Commons Chamber

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

[The Chairman of Ways and Means (Dame Eleanor Laing)]

With this it will be convenient to discuss the following:

Clauses 6 to 8 stand part.

That schedule 1 be the First schedule to the Bill.

Amendment 5, in clause 12, page 10, line 44, at end insert—

‘, and at the end of section 32(1) insert “, but eligibility for the increased maximum annual allowance from 1 January 2022 to 31 March 2023 is available only to businesses which can demonstrate that they have taken steps to reduce carbon emissions within their own business models and have set out further steps for how they plan to reduce carbon emissions towards a net zero goal”.’

This amendment would restrict access to the extended temporary increase in annual investment allowance to businesses that support transition to “net-zero”.

Amendment 6, page 10, line 44, at end insert —

‘, and at the end of section 32(1) insert “, but eligibility for the increased maximum annual allowance from 1 January 2022 to 31 March 2023 is available only to businesses which do not have a history of tax avoidance”.’

This amendment would restrict access to the extended temporary increase in annual investment allowance to businesses that do not have a history of tax avoidance.

Amendment 4, page 11, line 10, at end insert—

‘(3) The Chancellor of the Exchequer must, no later than 5 April 2022, lay before the House of Commons a report—

(a) analysing the fiscal and economic effects of the temporary increase in annual investment allowance, and the changes in those effects which it estimates will occur as a result of the provisions of this section, in respect of—

(i) each NUTS 1 statistical region of England and England as a whole,

(ii) Scotland,

(iii) Wales, and

(iv) Northern Ireland; and

(b) assessing how the temporary increase in annual investment allowance is furthering efforts to mitigate climate change, and any differences in the benefit of this funding in respect of—

(i) each NUTS 1 statistical region of England and England as a whole,

(ii) Scotland,

(iii) Wales, and

(iv) Northern Ireland.’

This amendment would require the Chancellor of the Exchequer to analyse the impact of changes proposed in clause 12 in terms of impact on the economy and geographical reach and to assess the impact of the temporary increase in the annual investment allowance on efforts to mitigate climate change.

Amendment 7, page 11, line 10, at end insert—

‘(3) In paragraph 2(3) of Schedule 13 of that Act—

(a) after “second straddling period is” insert “the greater of (a)”; and

(b) after “of that sub-paragraph” add “and (b) the amount (if any) by which the maximum allowance under section 51A of CAA 2001 had there been no temporary increase in the allowance exceeds the annual investment allowance qualifying expenditure incurred before 1 April 2023.”’

This amendment would amend the transitional provisions for the reversion of the AIA to £200,000 on 1 April 2023, to ensure that smaller businesses with lower levels of qualifying capital expenditure are not disadvantaged by having their effective AIA limit restricted to significantly less than £200,000 for a period.

Clause 12 stand part.

New clause 1—Review of the impact on revenues from tax on dividend income—

‘The Chancellor of the Exchequer must, within six months of the passing of this Act, publish an assessment of the impact on revenues from tax on dividend income of increasing the rates set out in section 8 of ITA 2007 by—

(a) 1.25%,

(b) 2.5%, and

(c) 3.75%.’

This new clause requires an assessment of what extra revenue would be derived by increasing the rates of tax on dividend income by different amounts.

New clause 2—Review of the impact on revenues from banking surcharge—

‘(1) The Chancellor of the Exchequer must, within six months of the passing of this Act, publish an assessment of revenues from the banking surcharge.

(2) This review must consider—

(a) the total revenue raised by the banking surcharge since its introduction,

(b) the total public expenditure on supporting the banking sector since 2008, and

(c) an assessment of risks to the banking sector in the future including the likelihood of further public support being required.’

This new clause requires an assessment of the banking surcharge in the context of the cost of public support to banks since the financial crisis and an assessment of the risk of the need for further public support in future.

New clause 3—Review of the impact of the extension of temporary increase in annual investment allowance—

‘The Chancellor of the Exchequer must, within three months of the end of tax year 2022-23, publish a review of decisions by companies to invest in the UK in 2022-23, which must report on which companies, broken down by size, sector, and country of ownership, have benefited from the annual investment allowance; and this assessment must also assess the merits of the existence of the superdeduction in light of the AIA.’

This new clause requires a review of which companies have benefited from the Annual Investment Allowance in 2022-23, broken down by size, sector, and country of ownership, and an assessment of the merits of the superdeduction in light of the AIA.

New clause 8—Review of changes to taxation of dividend income—

‘(1) The Chancellor of the Exchequer must, not later than six months after the passing of the Act, lay before the House of Commons a review of the fiscal and economic effects of the changes in the taxation of dividend income resulting from the provisions of section 4 of this Act.

(2) The review under subsection (1) must also include an assessment of the fiscal and economic effects of—

(a) removing the personal dividend taxation allowance, and

(b) amending the dividend income rates of taxation to match the existing rates of taxation of earnings.’

This new clause would require the Government to report to the House on the fiscal and economic effects of the changes made by clause 4 to the rates of taxation of dividend income, and also to assess the effects of other changes to the taxation of dividend income.

New clause 10—Assessment of annual investment allowance—

‘The Government must publish within 12 months of this Act coming into effect an assessment of—

(a) how much the changes to the annual investment allowance under section 12 of this Act will affect GDP in the event of the Finance Act coming into effect, and

(b) how the same changes would have affected GDP had the UK—

(i) remained in the European Union, and

(ii) left the European Union without a Future Trade and Investment Partnership.’

This new clause would require an assessment of the effects of the provisions in clause 12 on GDP in different scenarios.

New clause 11—Review of temporary increase in annual investment allowance—

‘The Government must publish within 12 months of this Act coming into effect an assessment of

(a) the size, number, and location of companies claiming the increased annual investment allowance,

(b) the impact of this relief upon levels of capital investment, and

(c) the percentage of total business investments that were covered by this relief in 2019, 2020 & 2021.’

This new clause would require an assessment of the take-up and impact of the temporary increase in the AIA.

New clause 16—Assessment of revenue effects of increases in the rates of tax on dividend income—

‘The Chancellor of the Exchequer must, no later than 31 January 2022, lay before the House of Commons an assessment of the effects on tax revenues of—

(a) the provision of section 4, and

(b) increasing the rates of tax on dividend income to the default rates of income tax.’

New clause 17—Review of impact of the abolition of basis periods—

‘(1) The Chancellor of the Exchequer must, within six months of the passing of this Act, review the impact of the abolition of basis periods.

(2) The review must consider the effects of the abolition on—

(a) farmers and other seasonal businesses,

(b) sole traders, and

(c) partnerships.

(3) The review must consider the effects of the abolition in respect of—

(a) each region of England and England as a whole,

(b) Scotland,

(c) Wales, and

(d) Northern Ireland.

(4) In this section, “region” has the same meaning as that used by the Office for National Statistics.’

This new clause would require a report on the effects of the abolition of basis periods on particular sectors, including farming and other seasonal businesses, sole traders and partnerships.

Finance (No. 2) Bill

Baroness Laing of Elderslie Excerpts

Report stage
Wednesday 2nd February 2022 Commons Chamber

[The Financial Secretary to the Treasury (Lucy Frazer)]

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

[Madam Deputy Speaker (Dame Eleanor Laing)]

With this it will be convenient to discuss the following:

Government new clause 3—Public interest business protection tax.

New clause 2—Review of impact of section 25 (Tonnage tax)—

‘(1) The Chancellor must review the impact of the changes made by section 25 of this Act (Tonnage tax), and lay a report of that review before the House of Commons, within 12 months of that section coming into force.

(2) The review carried out under subsection (1) must include assessment of the impact of the provisions of that section on—

(a) the training of UK—

(i) cadets and

(ii) ratings, and

(b) the employment of UK—

(i) cadets and

(ii) ratings

by operators of qualifying ships.

(3) The review carried out under subsection (1) must include assessment of the effect of changes to flagging arrangements made by subsections 25(6) and (7).’

This new clause would require the Government to report to the House on the impact of the provisions of clause 25 on the training and employment of UK seafarers.

New clause 4—Reviews of Economic crime (anti-money laundering) levy—

‘(1) The Government must publish a review of the operation of the Economic Crime (Anti-Money Laundering) Levy by 31 December 2027.

(2) The Government must publish on 31 December each year until the establishment of a register of beneficial owners of overseas entities that own UK property—

(a) an assessment of the contribution to the effectiveness of the Levy that such a register would make; and

(b) an update on progress toward implementing such a register.’

This new clause would put into law the Government’s commitment to undertake a review of the Levy by the end of 2027, and require them to publish an assessment every year until a register of beneficial owners of overseas entities that own UK property is in place an assessment of what impact such a register would have on the effectiveness of the Levy, and progress toward the register being established.

New clause 5—Review of the impact of the extension of temporary increase in annual investment allowance—

‘The Chancellor of the Exchequer must, within three months of the end of tax year 2022-23, publish a review of decisions by companies to invest in the UK in 2022-23, which must report on which companies, broken down by size, sector, and country of ownership, have benefited from the annual investment allowance; and this assessment must also assess the merits of the existence of the superdeduction in light of the AIA.’

This new clause would require a review of which companies have benefited from the Annual Investment Allowance in 2022-23, broken down by size, sector, and country of ownership, and an assessment of the merits of the superdeduction in light of the AIA.

New clause 6—Review of the impact of this Act—

‘(1) The Government must publish a review of the measures in this Act within three months of its passing.

(2) The review in subsection (1) must consider how the measures in this Act will affect—

(a) the amount of tax working people will be paying in 2022/23;

(b) household finances in 2022/23;

(c) the rate at which the economy will be growing in 2022/23.’

This review would require the Government to review what impact measures in this Act are having in 2022/23 on the amount of tax working people will be paying, household finances, and economic growth.

New clause 7—Equality Impact Analyses of Provisions of this Act—

‘(1) The Chancellor of the Exchequer must review the equality impact of the provisions of this Act in accordance with this section and lay a report of that review before the House of Commons within six months of the passing of this Act.

(2) A review under this section must consider the impact of those provisions on—

(a) households at different levels of income,

(b) people with protected characteristics (within the meaning of the Equality Act 2010),

(c) the Government’s compliance with the public sector equality duty under section 149 of the Equality Act 2010, and

(d) equality in different parts of the United Kingdom and different regions of England.

(3) A review under this section must include a separate analysis of each separate measure in the Act, and must also consider the cumulative impact of the Act as a whole.’

New clause 8—Government review of operation of Economic crime (anti-money laundering) levy—

‘(1) The Treasury must conduct a review of the Economic crime (anti-money laundering) levy.

(2) The review must consider the impact on the effectiveness of the levy that would be made by the following measures—

(a) the establishment of a register of overseas entities as proposed in the draft Registration of Overseas Entities Bill that was laid before Parliament on 23 July 2018; and

(b) proposals for corporate transparency and reform of the companies register announced in a Ministerial Statement to Parliament on 21 September 2020.

(3) The review must be published and laid before Parliament within two years of the levy coming into operation.’

This new clause would require the Treasury to conduct a review of the economic crime (anti-money laundering levy). In particular, the review would need to consider how the introduction of corporate transparency measures previously announced by the Government would affect the levy’s operation.

New clause 9—Assessment of annual investment allowance—

(a) how much the changes to the annual investment allowance under section 12 of this Act will affect GDP in the event of the Finance Act coming into effect, and

(b) how the same changes would have affected GDP had the UK—

(i) remained in the European Union, and

(ii) left the European Union without a Future Trade and Investment Partnership.’

This new clause would require an assessment of the effects of the provisions in clause 12 on GDP in different scenarios.

New Clause 10—Review of temporary increase in annual investment allowance—

The Government must publish within 12 months of this Act coming into effect an assessment of—

(a) the size, number, and location of companies claiming the increased annual investment allowance,

(b) the impact of this relief upon levels of capital investment, and

(c) the percentage of total business investments that were covered by this relief in 2019, 2020 & 2021.’

This new clause would require an assessment of the take-up and impact of the temporary increase in the AIA.

New clause 11—Assessment of Economic crime (anti-money laundering) levy—

‘The Government must publish within 12 months of the Act coming into effect an assessment of the impact of Part 3 of this Act (Economic crime (anti-money laundering) levy) on the tax gap and how it has affected opportunities for tax evasion, tax avoidance, and other economic crimes.’

This new clause would require an assessment of the impact of the Economic crime (anti-money laundering) levy on the tax gap and on opportunities for tax avoidance, evasion and other economic crimes.

New clause 12—Review of avoidance provisions of sections 84 to 92 on the tax gap—

‘The Government must publish within 12 months of the Act coming into effect an assessment of the provisions in sections 84 to 92 of this Act on the tax gap in the UK.’

This new clause would require an assessment of the impact of the provisions on tax avoidance in clauses 84 to 92 on the tax gap.

New clause 13—Review of provisions of section 85 and publication of information on overseas property ownership—

‘(1) The Government must publish within 12 months of this Act coming into effect an assessment of the impact of the provisions of section 85 about the publication by HMRC of information about tax avoidance schemes.

(2) This assessment must include consideration of the impact of the publication of a register of overseas property ownership upon the promotion of tax avoidance in the UK.’

This new clause would require an assessment of the impact of the provisions of clause 85, and consideration of the impact of publishing a register of overseas property ownership.

New clause 14—Review of reliefs on investments—

‘The Government must publish within 12 months of this Act coming into force an assessment of the impact on the tax gap of the reliefs on investments contained in this Act, and of whether those reliefs have increased opportunities for tax evasion and avoidance.’

New clause 15—Effect on GDP of international matters in Act, and of whole Act—

‘(1) The Government must publish an assessment of the impact on GDP of—

(a) the provisions in sections 24 to 28 of this Act, and

(b) this Act as a whole.

(2) The assessment must also compare these impacts to the impacts had the UK—

(a) remained in the European Union, and

(b) left the European Union without a Future Trade and Investment Partnership.’

This new clause would require a Government assessment of the effect on GDP of the international provisions of the Act, and of the Act as a whole, in different scenarios.

New clause 16—Review of impact of Residential property developer tax on the tax gap—

‘The Government must publish within 12 months of this Act coming into effect an assessment of the impact of Part 2 of this Act (Residential property developer tax) on the tax gap, and of whether it has increased opportunities for tax evasion and avoidance.’

This new clause would require a Government assessment of the impact of the Residential Property Developer Tax introduced in this Bill, and of its effect on opportunities for tax evasion and avoidance.

New clause 17—Impact of Act on tackling climate change—

‘The Government must publish within 12 months of this Act coming into effect an impact assessment of the changes in the Act as a whole on the goal of tackling climate change and the UK‘s plans to reach net zero by 2050.’

New clause 18—Vehicle taxes: effect on climate change goals—

‘The Government must publish within 12 months of this Act coming into effect an assessment of the impact of sections 77 to 79 on the goal of tackling climate change and on the UK‘s plans to reach net zero by 2050.’

New clause 19—Review of impact of reliefs in Act on the tax gap—

‘The Government must publish within 12 months of the Act coming into effect an assessment of the impact of the tax reliefs in this Act on the tax gap, and of whether they have increased opportunities for tax evasion and avoidance.’

New clause 20—Uncertain tax treatment—

‘The Government must publish within 12 months of this Act coming into effect an assessment comparing the rates of uncertain tax in the UK to those of all other OECD countries.’

New clause 21—Emissions certificates—

‘The Government must publish within 12 months of this Act coming into effect an assessment of the impact of sections 99 and Schedule 16 of this Act on the goal of tackling climate change and the UK‘s plans to reach net zero by 2050.’

New clause 22—Composition of the Office of Tax Simplification—

‘The Government must publish within 12 months of this Act coming into effect an assessment of the composition of the Office of Tax Simplification membership with a view to ensuring it is diverse and representative.’

New clause 23—Capacity of the OTS—

‘The Government must publish within 12 months of this Act coming into effect a review of the membership and capacity of the OTS, including consideration of the capacity the membership would have to deal with an expansion of its remit to include fairness in the tax system.’

New clause 24—Gambling—

‘The Government must publish within 12 months of this Act coming into effect an assessment of the provisions of clause 80 on—

(a) the volume of gambling, and

(b) public health.’

New clause 25—Impact of Act on tax burden of hospitality sector—

‘The Government must publish within 12 months of this Act coming into effect an assessment of the impact of the Act as a whole on the tax burden on the hospitality sector.’

New clause 26—Review of the residential property developer tax—

‘(1) The Government must publish a review of the residential property developer tax within three months of the passing of this Act.

(2) The review under subsection (1) must assess how much money the RPDT would raise at a range of rates at 0.5 percentage point increments.’

This review would assess how the revenue the RPDT would raise at range of rates at 0.5 percentage point increments.

New clause 27—Review of Economic crime (anti-money laundering) levy—

‘(1) The Government must publish an impact assessment of the operation of the Economic crime (anti-money laundering) levy within six months of Royal Assent to this Act.

(2) The assessment carried out under subsection (1) must include an assessment of the contribution to the effectiveness of the levy that a register of beneficial owners of property would make.’

This new clause would require the Government to produce an impact assessment of the operation of the new Economic crime (anti-money laundering) levy, and assess how a register of beneficial owners of property would contribute to the effectiveness of the levy.

Amendment 35, page 2, line 30, leave out Clause 6.

This amendment deletes clause 6 which reduces the rate of the banking surcharge and the level of the surcharge allowance.

Amendment 36, page 10, line 44, at end insert—

“, and at the end of section 32(1) insert “, but eligibility for the increased maximum annual allowance from 1 January 2022 to 31 March 2023 is available only to businesses which can demonstrate that they have taken steps to reduce carbon emissions within their own business models and have set out further steps for how they plan to reduce carbon emissions towards a net zero goal”.”

This amendment would restrict access to the extended temporary increase in annual investment allowance to businesses that support transition to “net-zero”.

Amendment 37, page 10, line 44, at end insert—

“, and at the end of section 32(1) insert “, but eligibility for the increased maximum annual allowance from 1 January 2022 to 31 March 2023 is available only to businesses which do not have a history of tax avoidance”.”

This amendment would restrict access to the extended temporary increase in annual investment allowance to businesses that do not have a history of tax avoidance.

Amendment 38, page 11, line 10, at end insert—

‘(3) In paragraph 2(3) of Schedule 13 of that Act—

(a) after “second straddling period is” insert “the greater of (a)”; and

(b) after “of that sub-paragraph” add “and (b) the amount (if any) by which the maximum allowance under section 51A of CAA 2001 had there been no temporary increase in the allowance exceeds the annual investment allowance qualifying expenditure incurred before 1 April 2023.”’

This amendment would amend the transitional provisions for the reversion of the AIA to £200,000 on 1 April 2023, to ensure that smaller businesses with lower levels of qualifying capital expenditure are not disadvantaged by having their effective AIA limit restricted to significantly less than £200,000 for a period.

Amendment 34, page 19, line 41, at end insert—

‘(10A) The Secretary of State must consult trade unions representing UK seafarers before making any regulations pursuant to subsection (8).’

This amendment would require the Government to consult trade unions representing UK seafarers before making regulations pursuant to subsection (8) of this clause. This subsection extends to ships not registered in the UK the power of the Department to make regulations requiring proof from companies and groups within the tonnage tax regime that their ships comply with safety, environmental and working conditions.

Government amendments 1 to 13.

Government new schedule 1—Freeport tax site reliefs: provision about regulations.

Government new schedule 2—Public interest business protection tax.

Government amendments 14 to 33.

[Lucy Frazer]

I thank all Members who have taken part in the debates on the Finance Bill so far. Today we are focusing on a number of potential amendments to the Bill. Many of the amendments seek to ensure the proper functioning of the legislation in response to stakeholder scrutiny and feedback. Others take forward responses to substantive issues that have emerged during the Bill’s passage. I will address each amendment in turn.

Amendments 1 to 8 to clause 36 relate to the Bill’s measures to establish a residential property developer tax, or RPDT. These amendments ensure that those holding a specific type of build licence giving them effective control of the land are subject to RPDT. That will ensure that the legislation works as intended, and closes a potential loophole.

Amendments 9 and 10 to clause 58 relate to the Bill’s clauses on the economic crime (anti-money laundering) levy. These amendments seek simply to amend clause 58 by replacing two references to “entities that are” with “persons”, providing further clarity by using terms consistently throughout the legislation.

Amendments 11 to 13 form part of the extensive action that the Government are taking to address the current heavy goods vehicle driver shortage. As Members will remember, at the last autumn Budget, the Government temporarily extended cabotage rights for foreign operators of heavy goods vehicles until 30 April this year to ease supply-chain pressures. That change was made on a short-term basis to support essential supply chains. These amendments seek to introduce an enabling power through the Bill to make temporary changes to vehicle excise duty legislation should the Government decide to introduce a further temporary extension of road haulage cabotage flexibilities beyond April and up to 31 December 2022. These amendments do not, in themselves, extend those flexibilities. The Government have made no decision to extend the cabotage easement. Any such decision would be taken only after consulting with interested parties, and in consideration of wider pressure on supply chains at the time.

Amendments 14 to 17 are technical amendments to clauses 7 and 8, and to schedule 1, which seek to abolish the basis period rules for the self-employed and partners, and introduce the tax-year basis from April 2024. The amendments will ensure that eligible taxpayers are able to benefit from certain tax reliefs, including double taxation relief, that are given as a deduction against tax rather than against profits during the transition to the new tax-year basis. The amendments are required to avoid an unintentional outcome of the basis period reform transition rules.

Amendments 18 to 30 address a number of technical points in the new asset holding companies regime to better reflect the original policy intentions. These amendments follow engagement with industry. They will make the rules of the tax regime clearer for companies that will use it, and will ensure that it can be more effectively implemented.

Amendments 31 to 33 relate to accounting standards. They make minor technical changes to part 2 of schedule 5, which revokes the requirement for life insurance companies to spread their acquisition costs over seven years for tax purposes. These changes will simply ensure that the legislation functions as originally intended.

I turn now to the Government new clauses and new schedules. New clause 1 and new schedule 1 will deal with provisions about regulations regarding freeports. These new provisions seek to build on our existing powers that allow us to introduce, amend and remove conditions to enable businesses to qualify for freeport tax reliefs. The provisions do that by allowing the Government to use secondary legislation to remove and recover those reliefs from individual businesses, if necessary on a prospective basis. This power could be used to enforce compliance. For instance, it would allow the Government to introduce new reporting requirements if needed, and to respond if companies did not adhere to them by removing reliefs or taking other action.

These provisions support our critical freeports programme, which will help to create employment in left-behind areas, and allow them to prosper with additional and much-needed investment. We look forward to seeing them, and the businesses within them, prosper.

New clause 3 and new schedule 2 seek to legislate for a new public interest business protection tax. Energy groups will often enter into derivative contracts to hedge their exposure to fluctuations in wholesale energy prices, and help to ensure that they can supply energy to customers at the prices fixed and under the price cap set by Ofgem. They will typically use a forward purchase agreement to buy energy in the future at a price that is fixed at the time when the contract is entered into.

The Government have been monitoring the global rise in wholesale energy prices very closely. We have a serious concern about certain arrangements whereby energy suppliers do not own, control or have the economic rights to the key assets needed to run their businesses, including forward purchase contracts. It is currently possible for an energy business to derive value from such a valuable asset for its own benefit and the benefit of its shareholders, while leaving its energy supply business to fail, or increasing the costs of a failure. The costs of that failure would then be picked up by the taxpayer or consumers, because it would trigger a special administration regime or a supplier of last resort scheme. These are special Government-funded administration routes that help to ensure that UK customers continue to be supplied with energy.

Ofgem is now consulting on a range of regulatory actions that it proposes to take to ensure that the right protections are in place in these circumstances. That work will ensure the ongoing resilience of energy supply businesses. However, it will take months for these changes to come into effect. The Government recognise that it would be unacceptable for a Government to allow business owners to profit from engineering this kind of outcome in the interim period, at great and direct expense to the taxpayer.

--- Later in debate ---

[Several hon. Members rose—]

[Madam Deputy Speaker (Dame Eleanor Laing)]

Order. I hope to bring in the Minister at 5.55 pm at the very latest, because many questions have been asked that hon. Members want the Minister to answer, so it is only fair to give her the time to answer them. Three hon. Members have tabled new clauses to which they must have the opportunity to speak. I must ask for short speeches, please; I hope we can manage without a time limit, but if those who are speaking to their new clauses can keep to five minutes, everyone will have the opportunity, however briefly, to address the House.

[Layla Moran (Oxford West and Abingdon) (LD)]

I rise to speak on behalf of the Liberal Democrats, particularly on new clause 27, which is tabled in my name.

The Liberal Democrats have concerns about this Bill. People who work hard, pay their taxes and play by the rules are seeing their incomes squeezed through no fault of their own. They are being crippled by tax hikes, benefits slashes and skyrocketing bills, and today I am afraid the Chancellor is letting them down. He is providing less in extra catch-up funding for children than he is in a tax cut for bankers. In contrast, the Liberal Democrats are calling for a £15 billion catch-up fund for kids, support for small businesses and protection from energy bill rises for the most vulnerable, and we support all new clauses that help to that end. We live in precarious times and we must do more.

In the context of escalating tensions with Russia, I am also concerned about what is missing from the Bill. New clause 27 has support from both sides of this House. It is similar to new clauses 4 and 11, tabled by Labour and SNP Front Benchers—I am grateful to them for rowing behind this clause—but it also has Conservative Members as signatories, which goes to show the cross-party support for bringing in this measure.

The new clause asks for an impact assessment to be produced on the operation of the new economic crime levy, and would require the Government to assess how a register of beneficial owners of property would contribute to the effectiveness of such a levy. Sadly, due to the scope of the Bill, the new clause cannot introduce such a register, but that does not make the need for it any less urgent.

The register would close the loopholes that allow oligarchs to launder money through British property. Lax regulations have turned London into a playground and a laundromat for Russian oligarchs, with successive warnings from the intelligence and security communities painting the city as “Londongrad”. Prior to the pandemic, Transparency International identified 87,000 properties in England and Wales that were owned by anonymous companies registered in tax havens. A new analysis has found that, of the £6.7 billion-worth of UK property bought with suspicious money, £1.5 billion comes from Russia.

On Monday, the Foreign Secretary spoke about introducing new sanctions, and I welcomed that. It is interesting that The Moscow Times reported on Monday that the Kremlin was “alarmed” at the British threat and vowed to retaliate. The dirty money that oligarchs invest in yachts, football clubs and Belgravia mansions has close ties to Putin’s own wealth. We know how he operates: he gives them the money to buy the assets. If we aim at the oligarchs, we aim at Putin, but there is a problem, because we cannot sanction what we cannot see. Claims from the Government that we are standing up to Putin’s military manoeuvres ring hollow when he and his friends know full well that they have already hidden half the money in our own back garden, and the Government continue to do nothing about it.

Dirty money also undermines our credibility with our allies. The Centre for American Progress, a think-tank closely linked to the Biden Administration, said:

“Uprooting…oligarchs will be a challenge given the close ties between Russian money and the United Kingdom”.

I am afraid to say that the stench of corruption and dirty money wafts over our political system and the whole country, and it is incumbent on us here and the Government to clean it up. There is a way to do that, and it is through the economic crime Bill, but waiting for that feels like waiting for Godot. It should not be this difficult to get the Government to make good on their own promises, because it was a Conservative Government six years ago who said they would introduce it. Two thousand days later and we have had nothing.

Just this week, the Prime Minister stood at the Dispatch Box and announced plans for a register of beneficial ownership, but at this stage it feels like he is the boy who cried wolf. I urge the Minister to accept new clause 27, which has support on both sides of the House, to start those tentative steps, to show Putin we are serious and to make sure that we clean up dirty money from our politics and our country for good.