Finance (No. 2) Bill

Baroness Laing of Elderslie Excerpts

Committee stage & Committee of the Whole House (Day 1)
Monday 19th April 2021 Commons Chamber

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

With this it will be convenient to discuss the following:

Clause 109 stand part.

Clauses 110 and 111 stand part.

That schedule 21 be the Twenty-first schedule to the Bill.

Government amendments 43 to 52.

That schedule 22 be the Twenty-second schedule to the Bill.

New clause 4—Eligibility for capital allowances and stamp duty land tax relief for freeport tax sites—

“No company shall benefit financially from the provisions of sections 110 or 111 unless the company—

(a) recognises a trade union for the purposes of collective bargaining with its workforce,

(b) is certified by the Living Wage Foundation as a living wage employer,

(c) is taking steps to reduce its carbon emissions, and

(d) publishes details of its equality pay gap and has a published plan to reduce disparities.”

This new clause would ensure that the benefits of capital allowances and relief from stamp duty land tax for freeport sites apply only to companies that meet certain criteria relating to employment and environmental credentials.

New clause 5—Economic impact of freeport tax sites—

“(1) Sections 109 to 111 shall not come into force until—

(a) the Secretary of State has published a report, commissioned from the Office for Budget Responsibility, and

(b) the report has been debated and approved by both Houses of Parliament.

(2) The report in subsection (1) must forecast the impact of sections 109 to 111 on—

(a) Government and local council tax revenues,

(b) economic activity in areas directly adjacent to proposed freeports,

(c) UK productivity, and

(d) the provision of jobs paid at more than the median wage.”

The new clause would make the commencements of sections 109 to 111 dependent on the Secretary of State publishing a report that would allow Members of Parliament to assess the economic case for freeports, and on both Houses agreeing that report.

New clause 25—Review of freeports—

“(1) The Chancellor of the Exchequer must review the impact of sections 109 to 111 and schedules 21 and 22 of this Act and lay a report of that review before the House of Commons within six months of the passing of this Act and once a year thereafter.

(2) A review under this section must estimate the expected impact of sections 109 to 111 and schedules 21 and 22 on—

(a) job creation within the sites designated as freeports and across the UK as a whole,

(b) revenue from corporation tax and stamp duty land tax within the sites designated as freeports and across the UK as a whole,

(c) levels of artificial tax avoidance and tax evasion across the UK as a whole,

(d) levels of criminal activity,

(e) the necessary level of staffing for HMRC and the UK Border Force, and

(f) departmental spending by HMRC and other departments on enforcement.”

This new clause would require the Government to review the impact of the provisions of the Act introducing freeports and publish regular reports setting out the findings.