Arms Export Licences (Saudi Arabia)

Debate between Elizabeth Truss and John Bercow

Thursday 26th September 2019 Commons Chamber

[John Woodcock (Barrow and Furness) (Ind)]

I refer Members to my declaration in the Register of Members’ Financial Interests. These mistakes are highly regrettable and point to the need for the Government to put their house in order in terms of the overall suspension as quickly as possible. Is it not lamentable for any Member of this House to imply that the suffering in Yemen is principally caused by any arms relationship or our coalition partners rather than the disgrace of the Houthi Islamist regime?

[Mr Speaker]

I am immensely obliged to the hon. Gentleman.

[Elizabeth Truss]

The hon. Gentleman makes an effective point, but the specific issue I deal with as Secretary of State for International Trade is making sure that our export licensing regime is in line with the process that we have laid out as well as the judgment of the Court of Appeal.

NHS Pensions: Taxation

Debate between Elizabeth Truss and John Bercow

Monday 8th July 2019 Commons Chamber

[Hon. Members]

When?

[Mr Speaker]

Order.

[Elizabeth Truss]

That is also why the Secretary of State is meeting representatives of the medical profession today. The hon. Lady asks whether the 50:50 scheme is enough and whether more can be done. Those are precisely the issues that the Health Secretary is discussing with those representatives of the medical profession. Of course he is working hand in hand with the Treasury to find NHS-specific solutions to deal with the problems that we all acknowledge and that have been raised today by my hon. Friend the Member for South West Bedfordshire (Andrew Selous). We all acknowledge that.

The important thing to remember is that, while we need to look for NHS-specific solutions—which is precisely what the Health Secretary is working on—the broader issue of taxation cannot be looked at just for one profession. The broader issue of the pension system has to be looked at in the round and in the whole. I am not going to stand at the Dispatch Box today and announce an entirely new pensions policy. We are pragmatically dealing with the situation that has arisen in the NHS, and of course we continue to review our pensions system to ensure that it makes financial sense for those people contributing to it as well as for the Exchequer. We pay more than £50 billion-worth of pension tax relief and it is important that we get value for money for that—that is why the reforms were conducted earlier—but of course we continue to review the arrangements to ensure that they are providing value for money as well as the right incentives for people to save for their later age.

Oral Answers to Questions

Debate between Elizabeth Truss and John Bercow

Tuesday 21st May 2019 Commons Chamber

[Mr Speaker]

The question is actually about the fiscal effects of the no recourse to public funds condition. I think I know what the hon. Lady is driving at, but I hope that other people are as aware of the connection as I am.

[Elizabeth Truss]

I have to agree, Mr Speaker; I am slightly struggling with the link between fiscal policy and the hon. Lady’s question. However, she might be interested to know that in the spending review we are specifically looking at how we can help women suffering domestic violence and how we can take the matter into account when deciding the future of our public spending.

[Elizabeth Truss]

It was certainly a weekend to remember on the Isle of Wight. It was my first ever visit to that great place, and I was impressed. The Isle of Wight provides a good opportunity to look at how we can do things differently, including how we can integrate services to cut down on bureaucracy and put more money on the frontline.

[Mr Speaker]

I am sure that the people of the Isle of Wight were most gratified that the right hon. Lady was among their number, even if only for a relatively short period.

--- Later in debate ---

[Elizabeth Truss]

I agree with the hon. Lady that Leeds does need flood protection. I remember visiting with her a few years ago to see the scheme. We have already achieved phase 1 with the £32 million for that, and the Government are putting forward £65 million for phase 2. My understanding is that Leeds City Council is keen to work with us on that, and we are keen to make progress.

[Mr Speaker]

Anneliese Dodds.

[Anneliese Dodds (Oxford East) (Lab/Co-op)]

Thank you, Mr Speaker; take two. The Environment Secretary said to Extinction Rebellion that he, at least, had got the message, but of course days later his Government were panned by the Solar Trade Association for new tax changes that will affect solar and storage schemes. That contrasts with Labour’s announcement last week of plans for 1.75 million households to benefit from the solar energy revolution. So will this Government abandon the damaging changes to VAT, match Labour’s solar investment plans and actually start taking renewables seriously?

Oral Answers to Questions

Debate between Elizabeth Truss and John Bercow

Tuesday 5th March 2019 Commons Chamber

[Elizabeth Truss]

We need to ensure that all businesses succeed. In the spending review, we will be ensuring that business support is just as supportive of new entrants and start-ups.

[Mr Speaker]

This one-sentence model could catch on; that would be splendid. I call Stephen Kinnock.

--- Later in debate ---

[Elizabeth Truss]

I would be delighted to meet the hon. Gentleman and colleagues to discuss this important issue.

[Mr Speaker]

Oh, I see what the hon. Gentleman was driving at in relation to topical questions. Jolly well done; what a prescient fellow. We now come to topical questions. I call Stephen Kinnock.

Oral Answers to Questions

Debate between Elizabeth Truss and John Bercow

Tuesday 29th January 2019 Commons Chamber

[Mr Speaker]

There is a lot to be said for Essex. The right hon. Lady and I can agree about that.

[The Chief Secretary to the Treasury (Elizabeth Truss)]

Mr Speaker is right: the only way is Essex. My right hon. Friend the Member for Witham (Priti Patel) is a great champion of the fantastic county of Essex, and she will have noticed that the Ministry of Housing, Communities and Local Government has already launched a fair funding consultation on local government spending. In the spending review, we will, of course, look at the different funding streams and make sure they are fair for all parts of the country.

ONS Decisions: Student Loans

Debate between Elizabeth Truss and John Bercow

Tuesday 18th December 2018 Commons Chamber

[Elizabeth Truss]

That issue is being considered by the Augar review, which is properly being led by the Secretary of State for Education, who is sitting beside me. From a Treasury perspective, my role is to ensure that we get good value for money from our public finances and that we are fair and transparent in the way we present things. That is what the OBR and the ONS look at.

[Mr Speaker]

Ah, the key there was a reference to the ONS. It would be helpful if colleagues would frame their questions with reference to the Office for National Statistics, because that is the gravamen of the matter.

[Dr Roberta Blackman-Woods (City of Durham) (Lab)]

The fact that the ONS has said that student loans will push up the UK’s deficit undoubtedly provides an incentive to reduce fees, but that could create a huge problem for university funding. I hope the Government will take stock and introduce a new system of student finance that does not rely on loans, massive student debt or punitive interest rates, but gives our universities the stable funding they need to thrive.

--- Later in debate ---

[Elizabeth Truss]

I suggest that the hon. Gentleman look at the results. The fact is that, since 2009, there has been a 68% increase in the number of low-income students going to university.

[Mr Speaker]

What the hon. Member for Glasgow North East (Mr Sweeney) conveyed to the House was quite extraordinarily interesting, but most of it did suffer from the notable disadvantage that it did not constitute a question. We got to a question mark very belatedly.

[Derek Thomas (St Ives) (Con)]

The ONS decision actually reminds us that the education of a large number of university students is funded by the taxpayer. That is welcome for those who come from deprived areas and may not earn the £25,000-plus that we would like. Will the Chief Secretary look at fairness across the system, so that people who do not go to university but want to study and train locally can get the skills and opportunities they need?

Oral Answers to Questions

Debate between Elizabeth Truss and John Bercow

Tuesday 11th December 2018 Commons Chamber

[Elizabeth Truss]

I think it is good if young people have the opportunity to work and study across the country, and we should not say that people have to be kept in their place, as we often hear from the Labour party. By expanding broadband and roads and putting more money into infrastructure, we are making sure that every town in Britain can succeed.

[Mr Speaker]

It is perfectly open to the hon. Members for Thornbury and Yate (Luke Hall) and for Sleaford and North Hykeham (Dr Johnson) to take part in the exchanges on this question, to which their own rather later inquiries are entirely relevant.

[Luke Hall (Thornbury and Yate) (Con)]

8. Can the Minister update us on what analysis the Treasury has conducted of the effectiveness of the apprenticeship levy in helping young people get into high-paid roles once they finish their apprenticeships?

--- Later in debate ---

[Elizabeth Truss]

The £84 million is specifically to roll out pilots and projects that we know have worked to reduce demand on children’s services and make sure children get a better outcome, but at the Budget we also put in an extra £410 million, which councils can spend on either adult social care or children’s social care.

[Mr Speaker]

It is always worth staying for topical questions, if colleagues are interested.

Public Sector Pay

Debate between Elizabeth Truss and John Bercow

Tuesday 24th July 2018 Commons Chamber

[Elizabeth Truss]

Yet again, we hear from a Labour Front Bencher not a positive welcome of the news today, which will mean hundreds of pounds more in the pay packets of public sector workers, but yet more complaints and no solutions.

We have scrapped the cap, and we are making sure that public sector workers get a decent pay rise. Let me tell the House what that will mean for workers in the public sector. For teachers earning under £35,000, it will mean a 3.5% pay rise, earning them an extra £800 a year. Police will see a 2% rise, with the average police constable on a £38,000 salary seeing a £760 pay rise. Prison officers will see a 2% rise and a 0.75% bonus, with extra for those who are new recruits. Junior doctors will get at least a 2% pay rise, and the hard-working people in our armed forces will receive a 2% pay rise and an additional 0.9% bonus, to reflect the brilliant work they do for our country.

The hon. Gentleman asks me how these pay rises are funded. Unlike the profligate Labour party, we have worked to support every Department to ensure that these pay rises are affordable within their budgets. In the case of the Department for Education—[Interruption.] The hon. Gentleman asked me the question. Does he want to hear the answer or not? [Interruption.] He obviously does not.

[Mr Speaker]

Order. I think the hon. Member for West Ham (Lyn Brown) is the author of a newly published book entitled “Summer Rage”, but if I may say so, the launch party can wait until after today.

[Elizabeth Truss]

I was diligently trying to answer the hon. Gentleman’s question, and I hope that he will listen to the answer.

We will be allocating a further £500 million from central Department for Education budgets to schools, to make sure they are able to give these pay rises to our hard-working teachers. In every other case, Departments have been able to find savings in their central budgets to make sure those pay rises are affordable. It is a bit rich getting lectures from the Labour party about affordability when its purported policy, along with overthrowing capitalism and making business the enemy, is to create a run on the pound. I do not know whether the hon. Gentleman can explain how his party could afford public sector pay rises with a run on the pound, but I would like to hear his answer.

The pay rises we are announcing today represent the highest pay rises for almost a decade for public sector workers. We have been able to achieve them because of our management of the economy, because we have seen employment reach a record level and because we are spending less in areas such as welfare, whereas people under the Labour Government were left on the scrapheap. Please can the Labour party welcome the fact that public sector workers are getting a pay rise and that we have scrapped the cap, rather than continuing with their usual Eeyorish nonsense?

Oral Answers to Questions

Debate between Elizabeth Truss and John Bercow

Tuesday 22nd May 2018 Commons Chamber

[Elizabeth Truss]

Surprise, surprise: we have not heard Labour acknowledge the excellent news from the Resolution Foundation that we now have the lowest share of low-paid employees for 35 years—before the Labour Government were in power. Under Labour, we saw rising unemployment and more people left on the scrapheap. We saw a welfare system that did not support people into work.

[Mr Speaker]

Order. We need to make faster progress. If people could keep their questions brief, and if answers could focus, as constitutionally they must, on the policies of the Government, that would be the proper procedure in the House. The right hon. Lady is very experienced and I know she knows that extremely well.

[Wera Hobhouse (Bath) (LD)]

3. If he will bring forward proposals for a multi-year funding plan for the NHS and adult social care.

Oral Answers to Questions

Debate between Elizabeth Truss and John Bercow

Tuesday 17th April 2018 Commons Chamber

[Elizabeth Truss]

The important thing about the issues with Carillion was that, first, we made sure that public services operated, and that, secondly, we did not give rewards for failure in a company that went bust. I would be very happy to look at the specific situation that the hon. Gentleman has outlined and to meet him.

[Mr Speaker]

A sentence without subordinate clauses from Mr David Linden?

Oral Answers to Questions

Debate between Elizabeth Truss and John Bercow

Tuesday 27th February 2018 Commons Chamber

[Elizabeth Truss]

As I have pointed out, it is right that we rebalance council spending from central Government grants to locally raised taxes, to help to keep councils accountable. We have seen councils up and down the country finding innovative ways of working, such as sharing back-office services and doing things such as installing wi-fi and improving waste collection. We have also seen Labour councils wasting money. For example, Momentum-supported Birmingham City Council bin strikes have cost the taxpayer £40,000 a day, and Reading—

[Mr Speaker]

Order. Resume your seat, Minister. That is the end of it. You answer for Government policy. You do not waste the time of the House by launching into rants about the policies of other parties. I have made my point, and if the Chancellor is confused about it, he really is under-informed and I say to him: stick to your abacus, man.

[Lloyd Russell-Moyle]

My own council of Brighton and Hove has had to make £52 million-worth of cuts in three years, despite superb Labour leadership in the city. With one of the Minister’s own Tory councils going bust, will the Chancellor finally commit to properly funding local government in tomorrow’s local government finance settlement?

Oral Answers to Questions

Debate between Elizabeth Truss and John Bercow

Tuesday 16th January 2018 Commons Chamber

[Elizabeth Truss]

I can assure the hon. Lady that I am in regular discussions with the Secretary of State for Scotland about the growth deals across Scotland. We have already committed to a number of growth deals and are certainly looking at further ones.

[Mr Speaker]

We are very time constrained today. One sentence—Alex Burghart.

Budget Resolutions

Debate between Elizabeth Truss and John Bercow

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

[Elizabeth Truss]

Absolutely, which is why our focus is on getting the best possible deal in the Brexit negotiations. Maintaining a tight grip on Government finances is, as my right hon. and learned Friend the Member for Rushcliffe (Mr Clarke) pointed out, vital for any Government, and Opposition Front Benchers would do well to look at that when they are considering—[Interruption.] I see that the shadow Chancellor is on his iPad looking up what the—[Interruption.] I can help him out without an iPad. His plans would mean an additional half a trillion pounds-worth of debt. If hon. Members want to know how much extra interest the British public would have to pay every year, I can tell them that it is £7 billion. I do not need an iPad to know that.

This Government are prioritising our country’s long-term growth prospects. We are investing in the infrastructure and in the skills that our country needs to succeed. Whatever the Opposition say, it is not politicians or Whitehall that will turbo-charge our economy and bring the growth and improved living standards we all want; it is the enterprises up and down the country that are going to deliver that. The Opposition want to tax new industry to the hilt or, even worse, to run it themselves. I cannot think of a more scary prospect for businesses across Britain. We take the opposite view; we want to unleash enterprise and to make sure that businesses have the people, space and the conditions to succeed. This is a Budget that recognises where the true value of our economy is created. It is not through issuing blank cheques that we cannot afford, but by making sure that our enterprises have the skills, talent and space that they need to grow and to ensure that all our citizens benefit from our powerhouse future. That is why the House should support the Budget in the Lobby tonight.

Question put and agreed to.

Resolved,

That income tax is charged for the tax year 2018-19.

And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.

[Mr Speaker]

I am now required under Standing Order No. 51(3) to put successively, without further debate, the Question on each of the Ways and Means motions numbered 2 to 44, on which the Bill is to be brought in. These motions are set out in a separate paper distributed with today’s Order Paper.

I must inform the House that, for the purposes of Standing Order No. 83U, with which I feel sure all colleagues are personally and closely familiar, and on the basis of material put before me, I have certified that in my opinion the following founding motions published on 22 November 2017 and to be moved by the Chancellor of the Exchequer relate exclusively to England, Wales and Northern Ireland and are within devolved legislative competence: motion 3, on income tax (main rates); motion 35, on stamp duty land tax (higher rates for additional dwellings); and motion 36, on stamp duty land tax (relief for first-time buyers). Should the House divide on any of these motions it will be subject to double-majority voting.

The Speaker put forthwith the Questions necessary to dispose of the motions made in the name of the Chancellor of the Exchequer (Standing Order No. 51(3)).

2. CORPORATION TAX (charge for financial year 2019)

Resolved,

That (notwithstanding anything to the contrary in the practice of the House relating to the matters that may be included in Finance Bills) provision may be made taking effect in a future year charging corporation tax for the financial year 2019.

3. Income tax (MAIN RATES)

Resolved,

That for the tax year 2018-19 the main rates of income tax are as follows—

(a) the basic rate is 20%,

(b) the higher rate is 40%;

(c) the additional rate is 45%.

And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.

4. Income tax (Default and savings rates)

Resolved,

(1) That for the tax year 2018-19 the default rates of income tax are as follows—

(a) the basic rate is 20%,

(b) the higher rate is 40%;

(c) the additional rate is 45%.

(2) That for the tax year 2018-19 the savings rates of income tax are as follows—

(a) the basic rate is 20%,

(b) the higher rate is 40%;

(c) the additional rate is 45%.

And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.

5. Income tax (starting rate limit for savings)

Resolved,

That section 21 of the Income Tax Act 2007 (indexation) does not apply in relation to the starting rate limit for savings for the tax year 2018-19 (so that, under section 12(3) of the Income Tax Act 2007 as amended by section 4 of the Finance Act 2017, that limit remains at £5000 for that tax year).

And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.

6. Transferable tax allowance

Resolved,

That—

(1) Chapter 3A of Part 3 of the Income Tax Act 2007 (transferable tax allowance) is amended as follows.

(2) Section 55B (tax reduction: entitlement) is amended in accordance with paragraphs (3) to (5).

(3) In subsection (2) (conditions for entitlement to tax reduction)—

(a) for paragraph (a) (individual is spouse or civil partner of maker of election in force under section 55C) substitute—

“(a) the individual is the gaining party (see section 55C(l)(a)) in the case of an election under section 55C which is in force for the tax year,”, and

(b) in paragraph (d), for “individual’s” substitute “relinquishing”.

(4) After subsection (5) insert—

“(5A) In this section “the relinquishing spouse or civil partner”, in relation to an election under section 55C, means the individual mentioned in section 55C(l)(a) by whom, or by whose personal representatives, the election is made.”

(5) In subsection (6) (reduced personal allowance for transferor)—

(a) after “under subsection (1)” insert “by reference to an election under section 55C”, and

(b) for “individual's” substitute “relinquishing”.

(6) Section 55C (elections to reduce personal allowance) is amended in accordance with paragraphs (7) and (8).

(7) In subsection (l)(a) (individual may make election if married or in civil partnership)—

(a) after “the same person” insert “(“the gaining party”)”, and

(b) in sub-paragraph (ii), after “when the election is made” insert “or, where the election is made after the death of one or each of them, when they were last both living”.

(8) After subsection (4) insert—

“(5) The personal representatives of an individual may make any election for the purposes of section 55B that the individual (if living) might make in relation to—

(a) the tax year in which the individual dies, or

(b) an earlier tax year.”

(9) Section 55D (procedure for elections under section 55C) is amended in accordance with paragraphs (10) and (11).

(10) In subsection (3) (elections which are not automatically continued in force for subsequent years), after “is made after the end of the tax year to which it relates” insert “or is made after the death of either of the spouses or civil partners”.

(11) In subsection (4) (election may be withdrawn only by individual who made it), after “by whom the election was made” insert an election made by an individual's personal representatives may not be withdrawn”.

(12) The amendments made by this Resolution—

(a) come into force on 29 November 2017,

(b) have effect in relation to elections made on or after that day, and

(c) so have effect even where a relevant death occurred before that day.

And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.

7. Deduction for seafarers’ earnings for duties performed outside UK

Resolved,

That provision may be made in connection with the application of Chapter 6 of Part 5 of the Income Tax (Earnings and Pensions) Act 2003 in relation to employment in the Royal Fleet Auxiliary Service.

8. Exemption for armed forces’ accommodation allowances

Resolved,

That provision may be made exempting, from income tax, amounts paid as accommodation allowances to, or in respect of, members of the armed forces of the Crown.

9. Benefits in kind: cars

Resolved,

That provision (including provision having retrospective effect) may be made amending Chapter 6 of Part 3 of the Income Tax (Earnings and Pensions) Act 2003.

10. Foreign-service relief for benefits on termination of employment

Resolved,

That provision may be made amending Chapter 3 of Part 6 of the Income Tax (Earnings and Pensions) Act 2003 in connection with restricting, in relation to payments and other benefits received in connection with the termination of a person's employment, relief given by that Chapter by reference to service within the definition of “foreign service” given by section 413(2) of that Act.

11. Employment income provided through third parties

Resolved,

That provision may be made in connection with—

(a) the application and operation of Chapter 2 of Part 7 A of the Income Tax (Earnings and Pensions) Act 2003, and

(b) the operation of Part 11 of that Act in connection with Schedule 11 to the Finance (No. 2) Act 2017

12. Disguised remuneration schemes (earnings charged to tax)

Resolved,

That—

(1) In section 554A of the Income Tax (Earnings and Pensions) Act 2003 (employment income provided through third parties: application of Chapter 2 of Part 7A), after subsection (5) insert—

“(5A) Subsections (5B) and (5C) apply where—

(a) a payment to a person other than A, or to A as a trustee, is of earnings from A's employment with B, and

(b) the earnings are, in whole or part, charged to tax under the employment income Parts otherwise than by virtue of this Part,

and for this purpose it does not matter whether all or some only or none of the tax is paid (but see sections 554Z5 and 554Z11B).

(5B) For the purposes of subsection (5C), an arrangement is a “redirected- earnings arrangement” if it (wholly or partly) covers or relates to redirected earnings; and for the purposes of this subsection and subsection (5C) “redirected earnings” means—

(a) the payment mentioned in subsection (5A)(a), or

(b) any sum or other property which (directly or indirectly)—

(i) represents, or

(ii) is derived from,

that payment.

(5C) The circumstances mentioned in subsection (5A)—

(a) do not prevent a redirected-earnings arrangement being within subsection (l)(b), and

(b) do not prevent rewards or recognition or loans being in connection with A's employment with B for the purposes of subsection (l)(c) where there is use of redirected earnings for the provision of the whole, or part, of the rewards or recognition or loans.”

(2) The amendment made by paragraph (1)—

(a) come into force on 29 November 2017,

(b) has effect for the purposes of the operation of Part 7 A of the Income Tax (Earnings and Pensions) Act 2003 in relation to relevant steps taken on or after 22 November 2017, and

(c) so has effect in the case of payments within the new subsection (5A)(a) whenever made (including ones made before 6 April 2011).

And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.

13. Trading income provided through third parties

Resolved,

That provision may be made about information for the purposes of the operation of Schedule 12 to the Finance (No. 2) Act 2017.

14. Pensions

Resolved,

That provision (including provision having retrospective effect) may be made about the application of Part 4 of the Finance Act 2004 in relation to—

(a) pension schemes that are Master Trust schemes,

(b) pension schemes established under section 67 of the Pensions Act 2008,

(c) pension schemes that have a dormant sponsoring employer, and

(d) pension schemes treated as registered by virtue of paragraph 1(1) of Schedule 36 to the Finance Act 2004.

15. EIS, SEIS, SI and VCT reliefs

Resolved,

That provision may be made about reliefs under Parts 5, 5A, 5B and 6 of the Income Tax Act 2007, including—

(a) provision having retrospective effect, and

(b) (notwithstanding anything to the contrary in the practice of the House relating to the matters that may be included in Finance Bills) provision taking effect in a future year.

16. PARTNERSHIPS

Resolved,

That the following provision relating to partnerships may be made—

(a) provision as to how tax legislation applies where a partner is a bare trustee;

(b) provision for determining the income tax liability of indirect partners;

(c) provision about income tax returns for partnerships.

17. Research and development expenditure credits

Resolved,

That provision may be made amending section 104M(3) of the Corporation Tax Act 2009.

18. INTANGIBLE FIXED ASSETS

Resolved,

That provision may be made amending Part 8 of the Corporation Tax Act 2009.

19. Corporation tax treatment of oil activities: tariff receipts etc

Resolved,

That provision may be made about the meaning of “tariff receipt” for the purposes of Part 8 of the Corporation Tax Act 2010.

20. Hybrid and other mismatches

Resolved,

That provision (including provision having retrospective effect) may be made amending Part 6A of the Taxation (International and Other Provisions) Act 2010.

21. Corporate interest restriction

Resolved,

That provision (including provision having retrospective effect) may be made relating to Part 10 of the Taxation (International and Other Provisions) Act 2010.

22. Corporation tax: Education Authority of Northern Ireland

Resolved,

That provision (including provision having retrospective effect) may be made relieving the Education Authority of Northern Ireland of liability to corporation tax.

23. Chargeable gains (indexation allowance)

Resolved,

That provision may be made restricting indexation allowance for gains chargeable to corporation tax.

24. Chargeable gains (transfer of assets to non-resident company)

Resolved,

That provision may be made amending section 140 of the Taxation of Chargeable Gains Act 1992.

25. Chargeable gains (depreciatory transactions)

Resolved,

That provision may be made amending section 176 of the Taxation of Chargeable Gains Act 1992.

26. First-year tax credits

Resolved,

That (notwithstanding anything to the contrary in the practice of the House relating to the matters that may be included in Finance Bills) provision may be made about first-year tax credits paid in connection with relevant first-year expenditure under the Capital Allowances Act 2001.

27. DOUBLE TAXATION RELIEF

Resolved,

That the following provision relating to double taxation relief may be made——

(a) provision in relation to counteraction notices given under Part 2 of the Taxation (International and Other Provisions) Act 2010;

(b) provision restricting credit relief under that Part, or deductions for foreign tax paid, by reference to amounts attributable to an overseas permanent establishment of a company that are used to reduce a foreign tax;

(c) provision (including provision having retrospective effect) to secure that the double taxation arrangements to which effect may be given by Order in Council include arrangements modifying the effect of earlier such arrangements and arrangements conferring functions on public authorities within or outside the United Kingdom.

28. bANK LEVY

Question put,

That provision may be made amending Schedule 19 to the Finance Act 2011, including (notwithstanding anything to the contrary in the practice of the House relating to the matters that may be included in Finance Bills) provision taking effect in a future year.

Oral Answers to Questions

Debate between Elizabeth Truss and John Bercow

Tuesday 24th October 2017 Commons Chamber

[Elizabeth Truss]

There is not a pay premium. Public and private sector pay are roughly comparable, but in the public sector there is an average of 10% additional remuneration in terms of pension contributions.

[Mr Speaker]

I hope that the whole House will join me in congratulating very warmly the right hon. Member for Tatton (Ms McVey) on her significant birthday today.

Public Sector Pay Cap

Debate between Elizabeth Truss and John Bercow

Wednesday 5th July 2017 Commons Chamber

[Hon. Members]

Withdraw!

[Mr Speaker]

Order. I know these matters pretty well by now. The right hon. Lady must resume her seat. I am sure that she has got a very versatile vocabulary, and she must deploy some other term. She cannot accuse a Member of being disingenuous; that is an imputation of dishonour. She has been in the House long enough to know that she should not say that. It is very simple, no debate required—a simple withdrawal. Thank you.

[Elizabeth Truss]

I do withdraw that, Mr Speaker, and apologise for it.

Perhaps the right hon. Gentleman was mistaken in what he said, because in 2015-16 we saw teachers get 3.3% worth of progression pay, we saw more than half of nurses and NHS workers get over 3%, and we saw military service personnel receive 2.4%. I therefore suggest that he include those facts in the figures next time he speaks. As for the fire service, he knows perfectly well that those pay policies are set independently and are covered within the local government budget.

I think it is wrong that we are hearing the Opposition talk down our public services when we are seeing huge improvements, we are seeing more people attracted into our public services, and we are seeing the best performance ever in our education system and our health system. As for uncosted commitments, the right hon. Gentleman has £60 billion worth.

The right hon. Gentleman asked about the pay review process. Well, the process is very simple. We have received recommendations from pay review bodies already this year. They make decisions based on the individual circumstances within those sectors. We have followed all of their recommendations. We will look at the further recommendations we need to make decisions on, and we will look at the balance between affordability and making sure that we retain and recruit high-quality public sector workers. This is the right approach. It is not saying that we are going to open up the cheque book, bankrupt our public services and see people lose their jobs, which is exactly what has happened in countries like Greece that took that approach and took their eye off the public finances. The right hon. Gentleman needs to take a more balanced approach in the way that he looks at this issue.

[Mr Speaker]

During the rather fractious proceedings to date, one Member has been the embodiment of calm and serenity. That Member should be imitated by others, and will now be called to contribute—Mr Kenneth Clarke.

[Mr Kenneth Clarke (Rushcliffe) (Con)]

Those are not adjectives that have been applied to me throughout my political career, Mr Speaker, but I am grateful to you for that credit. May I congratulate my right hon. Friend the Chief Secretary to the Treasury on straightforwardly restating the Government’s sensible policy on this issue? It is necessary as part of our ensuring, in this post-Brexit world, that we keep the economy on track; that steady, sustainable growth continues; and that we steadily eliminate the problem of debt and deficit that we inherited.

Does my right hon. Friend agree that if she were to give way to this week’s lobbying on the subject it would be a political disaster, because the Government would be accused of a U-turn and a surrender? It would set off a wave of pay claims across the entire public sector, which the Opposition are obviously looking forward to taking part in if they can provoke them. It might also be an economic disaster, and it would not be in the interests of the many people in the public and private sectors who are having economic difficulties in these times, and who want to look forward to a much more prosperous future as we get our economy back to health.

--- Later in debate ---

[Elizabeth Truss]

We have got to the position where public sector pay is comparable with private sector pay, and public sector workers often have pension entitlements on top of that. It is fair to get to a position where pay is comparable, for the skills people have. That is fair for the businesses that we need to create wealth in our country, so that we can fund public services. It is fair for workers in both the private sector and the public sector. Nothing is more important than getting people into work and giving them a sense of pride and responsibility, and the ability to earn for themselves and their family that come with it. The Government should be proud of what we have achieved: the lowest level of unemployment since 1975. The idea that we should put that at risk by making our public finances unsustainable or by pricing small businesses out of the market is very dangerous.

[Mr Speaker]

I see that the Father of the House is leaving the Chamber, but I hope that the calm and serenity that he brought to the Chamber will linger with us for some time to come.

[Rosie Cooper (West Lancashire) (Lab)]

This issue is also about fairness—a word I have heard repeatedly. Liverpool clinical commissioning group paid themselves increases of between 15% and 81%, with a non-executive getting £105,000. An NHS investigation has confirmed that that is far outside the rules, yet the accountable officer and governing body have not been held to account. Does that send a message from the Government to the NHS that people can do what they want, that anarchy rules and that the pay cap will be applied selectively and is not fair?

--- Later in debate ---

[Elizabeth Truss]

The Labour Government left us with a huge deficit and a huge debt, which we have had to deal with over the last Parliament. It continues to hang over us, which is why the only path is the sustainable path of making sure we grow our economy, so we can enjoy even better public services and see people’s pay rise across the board.

[Mr Speaker]

Now that the hon. Member for Glasgow South West (Chris Stephens) has been sitting in a state of almost Buddha-like repose for some minutes, I think it is safe for the Chamber to hear from him.

[Chris Stephens]

Mr Speaker, as a passionate trade unionist for 20 years sometimes my emotions get the better of me.

Will the Chief Secretary confirm that pay is so low in some Government Departments that 40% of employees in those Departments are in receipt of tax credits? Will she publish, for each UK Government Department, how many employees are in receipt of tax credits?