Oral Answers to Questions

Debate between Gareth Davies and Liz Twist

Tuesday 7th May 2024 Commons Chamber

[Gareth Davies]

Banking hubs are driven by commercial organisations. Any area that loses bank branches is entitled to get a banking hub. Of course, we want to see more across the country, but we also have to recognise that banking has changed and the ways in which people bank have moved more towards digital, so it is right that commercial organisations take commercial decisions.

[Liz Twist (Blaydon) (Lab)]

10. What recent fiscal steps he has taken to help reduce regional economic inequalities.

[The Exchequer Secretary to the Treasury (Gareth Davies)]

At the spring Budget, we built on the £15 billion of levelling-up commitments made since 2019. We announced a trailblazer devolution deal for the north-east mayoral combined authority and a £400 million extension to the long-term plan for towns.

[Liz Twist]

The cross-party Public Accounts Committee has revealed that the Government’s levelling-up funds were subject to a “worrying lack of transparency”, with rules for accessing funding changing while bids were still being assessed. Will the Minister therefore apologise to the 55 local authorities rejected for funding that were not told in advance that their applications had no chance of success?

[Gareth Davies]

This is the Government who implemented £15 billion of support for communities outside of London and the south-east, which is one of the reasons why median pay growth is higher in every region outside of London and the south-east. Of course, there is a robust methodology and criteria for selecting places for funding, and I encourage the hon. Lady to look at those criteria.

Finance (No. 2) Bill (Fourth sitting)

Debate between Gareth Davies and Liz Twist

Committee stage
Thursday 18th May 2023 Public Bill Committees

[Gareth Davies]

I am grateful for the question. I can tell the hon. Lady that in the period I referenced with the 2,500 waste units, 51 arrests were made as a result of that action. I apologise that I do not have further details to hand, but I am happy to provide them later.

As I was saying—this goes back to what my hon. Friend the Member for Newcastle-under-Lyme talked about—HMRC does have powers to intervene and issue penalties if necessary.

[Liz Twist]

I have two points for the Minister. First, my specific question was whether any prosecutions had taken place as a result of the work of the joint unit for waste crime. Like my hon. Friend the Member for Wallasey, I am pleased to hear that a number of sites have been shut down, although it is worrying that there were so many.

Secondly, will the Minister comment on the landfill tax gap? The issue was discussed in the Public Bill Committee on what became the Finance Act 2022. The then Exchequer Secretary to the Treasury, the hon. Member for Faversham and Mid Kent (Helen Whately), wrote to me following the Committee with an estimate of £200 million—22.7%—for the landfill tax gap for England and Northern Ireland in 2019-20. That was a decrease from the previous year.

If I heard him correctly, the Minister—

[The Chair]

Order. Interventions should be brief and to the point. The hon. Lady and other members of the Committee will not have any difficulty catching my eye if they want to make another contribution.

[Gareth Davies]

I completely understand the hon. Lady’s passion. I know that she is a long-standing campaigner in this area, so it is no surprise that she wants to discuss the issue; I completely understand why that is. I can tell her that the tax gap has fallen, I believe, in the period that I talked about by £125 million, from £200 million in 2019-20. To reiterate, in 2005 the tax gap stood at 7.5% and in 2020-21 it stood at 5.1%. As I say, we are not complacent. We must tackle the issue, and we continue to make great efforts to do so. I put on the record my thanks to HMRC for all the work that it does to get the number down, but it is a live issue.

Let me mop up the question asked by the hon. Member for Ealing North about a review of the plastic packaging tax. He is right to raise that. We will be conducting a review very soon, but we are clear that we would like a decent period in which to conduct it so that we can see a clearer picture of the impact the tax is having. I can assure him that a review will be conducted very soon.

[Liz Twist]

I apologise for my previous lengthy intervention, Mr Stringer. May I return to the issue of the tax gap? As the Minister himself said, it was £200 million in 2019-20, a 22.7% gap. I am interested to hear the Minister say that it has reduced so much. If it has, I am hugely pleased, as it means that enforcement action is being taken. [Interruption.] Would he care to comment on the huge gap in the figures and how it might have reduced?

[Gareth Davies]

I apologise, but will the hon. Lady make that last point again? I did not hear her because of the noise in the background.

[Liz Twist]

I was just asking the Minister to explain how the Treasury has managed to reduce the tax gap from 22.7% in 2019-20 to 5% in the latest figures, which is what I believe he said. That seems to be a great difference.