11 Heidi Allen debates involving HM Treasury

Mon 16th Jul 2018
Taxation (Cross-border Trade) Bill
Commons Chamber

3rd reading: House of Commons & Report stage: House of Commons
Wed 5th Jul 2017
Thu 29th Oct 2015
Tue 20th Oct 2015

Breathing Space Scheme

Heidi Allen Excerpts
Wednesday 19th June 2019

(5 years, 5 months ago)

Commons Chamber
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John Glen Portrait John Glen
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The hon. Gentleman makes an interesting point, but that is not an area for which I have direct responsibility. Reclaimed overpayments—for example, from universal credit—will be included in the scheme. I cannot comment on things that are outside my control, but I hear his point about doing this as quickly as possible.

Heidi Allen Portrait Heidi Allen (South Cambridgeshire) (Ind)
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The announcement of the scheme is brilliant news and I welcome the statement enormously, and particularly the parts on the inclusion of Government debt in the scheme. I also welcome the fact that the Government have recognised the effect that debt has on people’s lives and their ability to get out of debt. However, I urge the Minister to look into the Government’s own policies—I suspect he knows what I am coming to. The five-week universal credit wait is a big issue. Advance payments are not the solution because they themselves are a debt and are putting vulnerable people further into debt. As I have said many times, the advance payment for the most vulnerable should be a grant, not a loan. As it is, we are handing out advance payments to around 60% of claimants. We are handing out the money anyway, so it is not going to cost us anything. It is just a cash-flow situation.

The Work and Pensions Committee has recently heard moving and horrendous testimonies from women who have been forced into sex work because they cannot make ends meet. We heard stories of women going into a brothel for around three days, working 20 hours out of 24 and coming out with £150 of earnings, and that gives them a roof over their heads as well. As our Prime Minister leaves office, I cannot believe that is the legacy she wants to leave behind. Please will the Minister look into this issue? It is also a Government debt.

John Glen Portrait John Glen
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I acknowledge the hon. Lady’s deep interest in and work on this topic over several years. She has raised points to which it is difficult for me to respond because they are outwith my responsibilities. As she will know, in the Budget we announced a £1.7 billion package of additional financial support for universal credit. I acknowledge that the hon. Lady disagrees with one element, but that additional support did involve the reduction of the maximum deduction from the standard allowance, from 40% to 30%. I cannot speak for a policy area for which I do not have responsibility. I am delivering a breathing space scheme that covers a wide range of debts and reaches deep into public sector debts, which I was keen for it to do from the outset.

Spring Statement

Heidi Allen Excerpts
Wednesday 13th March 2019

(5 years, 8 months ago)

Commons Chamber
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Lord Hammond of Runnymede Portrait Mr Hammond
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Scotland will benefit from the £100 million that I announced today through the Barnett formula. At the request of a group of my hon. Friends, we looked at the question of VAT and changed the rules, but the Scottish Government did what they did—they reorganised Police Scotland—in the full knowledge that it would have those VAT consequences.

Heidi Allen Portrait Heidi Allen (South Cambridgeshire) (Ind)
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Does the Chancellor understand that ending the benefits freeze is not just about people in work? It is about our welfare safety net. People who cannot work because they are too ill cannot afford to live on the basic amount. The benefits freeze must end. The core amount of universal credit and employment and support allowance have not risen for three years.

Lord Hammond of Runnymede Portrait Mr Hammond
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As I have said, the benefits freeze will end at the end of the forthcoming year. We have no intention of renewing or prolonging it. Those were difficult decisions, but ones that we had to take.

Taxation (Cross-border Trade) Bill

Heidi Allen Excerpts
Chris Leslie Portrait Mr Leslie
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Exactly. It would be sensible of the Government to read the runes and start thinking about where there is a consensus in Parliament for a positive way forward rather than constantly laying down or accepting more red lines, or caving in to threats from those who are very loud but represent a tiny minority viewpoint.

New clause 2 is really important because it would preserve our current role of participation in the EU VAT area. I hope hon. Members will see the purpose of that. I think we currently have 25 million customs declarations paying VAT at the border. That will potentially rise to 255 million. Imagine the bureaucracy, the cost of administration and the paperwork for our VAT system if those declarations also have to be made at the border. Amendment 73 would end up taking out our participation. I intended to raise this issue as a matter of debate, but perhaps I should press new clause 2 to a vote, because the EU VAT area is absolutely crucial to avoiding a hard border.

It is important that we pick out the problems with the Chequers arrangement. I understand that the Prime Minister is trying to find some sort of balance, but I am afraid to say that the notion of a facilitated customs arrangement just does not quite get us to where we need to be. I am delighted with the acceptance of how important a common rulebook for goods is to our country. That recognition of economic reality is important, but it is only one piece of the jigsaw that we need. For instance, we need to ensure that the 80% of our economy in the services sector is not completely abandoned and that we lose out as a result.

Heidi Allen Portrait Heidi Allen (South Cambridgeshire) (Con)
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I would just like to reflect on how refreshing it is—it is probably what the majority of the country wants to see—that sensible people are working cross-party to try to find a way forward in this dreadful mess. I agree with the hon. Gentleman on the Chequers arrangement. It is an opening bid to the EU, is it not, saying, “Okay, come back and tell us which pieces you are happy or unhappy with.”? I am interested in whether he knows Labour’s position on the wrecking amendments, specifically amendments 73 and 36. Will he and his party will be joining us in voting against them?

Chris Leslie Portrait Mr Leslie
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Well, I will certainly want to vote against amendment 73, but my hon. Friends will make their own remarks in their own time. I do not know what their intentions are, as I have not had a chance to hear from them. Intuitively, I doubt very much that my hon. Friends, knowing what the hon. Member for North East Somerset (Mr Rees-Mogg) is up to, knowing where the members of the ERG come from on the political spectrum—the hard right Brexit perspective—and knowing how important the economy is to the future of this country, will abstain on amendment 73.

Leaving the EU: Customs Arrangements

Heidi Allen Excerpts
Tuesday 10th July 2018

(6 years, 4 months ago)

Westminster Hall
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Stephen Hammond Portrait Stephen Hammond
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Again the hon. Gentleman guesses what I was about to say next. I was using the ports of Dover and Calais as examples of ports across the United Kingdom. Of course, it would also require restrictions and a border infrastructure to be in place between the two ports he mentions.

Over the last few years, some people have called that project fear, but the reality is that we are facing risks to our economy and to people’s jobs. In the last two weeks, businesses such as Airbus and Jaguar Land Rover have been increasingly vocal about these events and the risks. A recent Institute of Directors poll found that business leaders want a post-Brexit customs arrangement that avoids the new customs processes and maximises EU market access by minimising regulatory divergence. Warnings from big employers and investors in the UK should not be ignored, and certainly not by a Government who are committed to protecting jobs and enhancing employment opportunities.

Heidi Allen Portrait Heidi Allen (South Cambridgeshire) (Con)
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On that point, it is important for everyone to recognise that although big businesses can be noisy and have press contacts, the way that business filters through like a food chain means that they provide work for medium-sized businesses, who provide work for small businesses. As a country, we would be completely foolish to risk fundamentally changing the way we deal with our existing EU customers without having a clue about what the new customers in the rest of the world might want. We have to find a way to preserve frictionless trade with our existing customers if we want to protect our economy.

Stephen Hammond Portrait Stephen Hammond
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My hon. Friend is right. The supply chain provides jobs in all sorts of areas across the country. It is not just the big employers, but the thousands of people who are employed in their supply chain. For a small firm, the bureaucracy of restrictions such as rules of origin requirements and certificates, will be so extreme that some of them are likely to go out of business. We need to realise that.

We need a solution to those problems that protects jobs and businesses, that reflects the realities at ports, that avoids a border in Ireland and that can be fully enforced by the end of the implementation period. It is no good just relying on the technology being there, because at the moment it does not exist or it has never been tested on anything like that scale.

I am not sure that I am in universal agreement with all hon. Members, but I welcome the Chequers plan as a sensible proposal. As with everything, it will be in the detail, and as I said earlier, we are in a slight vacuum at the moment because the White Paper’s timely publication will be important, but it is not yet with us. One ambiguous area is the suggestion that maintaining frictionless trade with the EU will limit our ability to pursue new free trade deals. I will leave it to the Minister to explain exactly how those proposals will ensure that we can keep the option of free trade open.

The Government’s proposal is a welcome step towards at least recognising the economic reality that will hit us. I do not want to say that the debate has secured all the answers yet, because we will have the White Paper, but I will say that the Brexit debate has not yet faced up to some of the inevitable trade-offs between different rules around the world. If barriers are removed somewhere, they will almost certainly be put up somewhere else. That is the consequence.

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Jim Shannon Portrait Jim Shannon (Strangford) (DUP)
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It is always a pleasure to speak in debates, Mr Streeter, no matter what the issue may be, but, as a Brexiteer, I will give an opinion that might not go down well with others in this Hall. However, it is my opinion and that of many in my party. We are where we are and we have to try to find a way forward. I am very much one of those guys who tries to find a way forward. Coming from Northern Ireland and from a political background, and understanding the political process of where we have got to, I feel that if there is a will to find a way forward, we can find it. I want to express my thoughts in a constructive fashion, and hopefully other Members will appreciate what I try to say.

First, I thank the hon. Member for Wimbledon (Stephen Hammond) for securing this debate and allowing me the opportunity to speak in it. He succinctly and purposefully put forward his viewpoint, as other Members have done. With the increased uncertainty regarding the bill for our leaving Europe, it is more important than ever that we remember what people voted for when they voted to leave in June 2016. I am clear about what I and the constituency of Strangford voted for: we voted to leave by 56% to 44%. I am very clear about that.

I asked the Prime Minister a question yesterday on fishing, which is important for my constituency, and she answered it. I hope Members get a chance to read it. One could not be anything but clear about what the Prime Minister said in relation to fishing. I am reassured by her response to my question. The Minister’s Parliamentary Private Secretary, the hon. Member for North Cornwall (Scott Mann), is interested in fishing issues and I know he will have taken note of that. That is something on which he and I would be on the same wavelength; we are probably both encouraged by it.

People did not vote to straddle the EU and the UK, for outside influence in law making to be countenanced, or to retain residual membership of Europe. They voted to leave. I voted to leave, and my constituents voted to leave. That is the principle on which everything we do must be based. I understand that the complexities are incredible. I look on everyone in the Chamber as friends and colleagues, and sometimes we differ in our opinions and the way we look at things, but the right hon. and hon. Members present want, as I do, to find a way to an agreement and understanding with Europe.

Heidi Allen Portrait Heidi Allen
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The hon. Gentleman is right that a 52% to 48% result has to look like a compromise that the whole country and Parliament can somehow find a way to get behind, so does he agree that the Prime Minister’s outline proposals from Chequers go some way towards that? They would satisfy him as to what is needed for the fishing industry; but I will never forget the unemployment figures given by the hon. Member for Bishop Auckland (Helen Goodman). Surely the hon. Gentleman must agree that the right proposals will safeguard all the industries in question, and that they must include close alignment to something like the customs union.

Public Sector Pay Cap

Heidi Allen Excerpts
Wednesday 5th July 2017

(7 years, 4 months ago)

Commons Chamber
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Urgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.

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Elizabeth Truss Portrait Elizabeth Truss
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I should say to my fellow Norfolk MP that we are seeing improved public services in Norfolk, both in the health service and in our local schools. That is a result of the Government reforming services and investing in them, and ensuring that people receive pay that helps to retain and recruit the best possible staff.

Heidi Allen Portrait Heidi Allen (South Cambridgeshire) (Con)
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I understand that pay bodies are independent—it is important that they remain so—but will the Chief Secretary explain who sets the context for those pay bodies? When they undertake their reviews, will they take into account not only historical pay rises and the cost of living, but extra influences such as the influence of Brexit on our difficulty in recruiting nurses?

Economy and Jobs

Heidi Allen Excerpts
Thursday 29th June 2017

(7 years, 4 months ago)

Commons Chamber
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Heidi Allen Portrait Heidi Allen (South Cambridgeshire) (Con)
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I rise to speak on this final day of the Queen’s Speech debate and will start by showing my appreciation for the news that we will now pay for abortions for women from Northern Ireland who come to England to have them. I thank the Minister for Women and Equalities, my right hon. Friend the Member for Putney (Justine Greening), and the hon. Member for Walthamstow (Stella Creasy) for helping to make that happen.

Although our Prime Minister called the general election with honourable intentions—I believe that she felt it would allow her to enter Brexit negotiations with the strongest hand possible—our campaign displayed what I have feared for a while: the gap between people’s lives and the lives of decision makers in here has grown too wide. We failed to convey the message of empathy and compassion that the Prime Minister so emotively displayed in her first speech outside No. 10. We failed to demonstrate the determination and optimism for this country that are inbuilt in Conservative DNA.

Knocking on doors, I asked my constituents to put their trust in me—and they did, for which I am very grateful. I also promised them that I would make sure that my party did not veer too far to the right and that their concerns would not be disregarded. They—and I—want affordable housing, decent school funding, an NHS and social care system equipped to deal with our ageing population, a secure post-Brexit economy, an outward-looking, globally collaborative country and a welfare state that supports the vulnerable. The heartbreaking thing is that I know that we can and will deliver all of that; we want all of that, but we did not demonstrate a positive vision of how we would deliver it.

This party must change. We must put people at the heart of everything that we do. We must listen and build our policies from the ground up, be flexible, dynamic, modern, collaborative and, above all, compassionate. Financial and economic competence is not enough. I want a Conservative party that people want to vote for rather than a party that they feel they have to vote for. That is also the Conservative party that this country wants, too. Right now, we are a long way away from that, but we have said that we have listened and that we will learn.

One of my unswerving goals since becoming an MP has been to change how people feel about politicians. I want an honest, transparent, collaborative, respectful and positive kind of politics. I can barely put into words my anger at the deal that my party has done with the DUP. We did not need to do it. I cannot fault the DUP for wanting to achieve the very best deal for their residents of Northern Ireland, nor for their tough negotiating skills, but I must put on record my distaste at the use of public funds to garner political control. We should have run with a minority Government and showed the country what mature, progressive politics looks like. The only comfort that I can take is knowing that people in Northern Ireland will benefit. This must never again be how this Government prioritises spending. This is not the way to begin that journey of change.

I have thought long and hard about how to vote on this Queen’s Speech, for a Back Bencher’s vote must be earned, just as those of our constituents are earned. A vote is not given unconditionally. The voice in my head shouting louder than this anger is the knowledge that, although there is so much we need to do to change, the Conservatives remain the only party capable of leading and delivering what this country needs to prosper. Labour’s policies would lead to economic ruin. Its Christmas list of free-for-alls would see business running for the hills as fast as its overtaxed legs could carry it, taking jobs with it. Uncontrolled spending and penalising business is never the answer, but it is not enough to expect voters to believe us—we must show them that this is the case.

We must keep creating well-paid and secure jobs, because that is the heart of everything. We must build even more affordable and council homes. We must properly fund our welfare state to support the vulnerable. We must carefully release those public purse strings to lift the pay cap where we can for nurses and those on the frontline of our public services. We must respond to the financial challenges in our schools and the NHS and fund them. We must also be unafraid to look at how we tax higher earners and, yes, the triple lock on pensions.

We must all put party politics aside and work cross-party to find a solution for social care, to find the right path to Brexit and security for EU nationals living here. We must do all this and more to regain the trust of the electorate, and that is what I hope Conservatives will do.

Autumn Statement

Heidi Allen Excerpts
Wednesday 23rd November 2016

(8 years ago)

Commons Chamber
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Lord Hammond of Runnymede Portrait Mr Hammond
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I am afraid to tell the hon. Lady that I do not have a ready answer for her on precisely how many women’s jobs will be created, but I do know that we have more women in work than ever before in this country and that our female participation rates are approaching the levels of the very highest rates in Scandinavian countries. I also know, because it is an area of interest to me, that more women are going into what one might describe as traditionally male preserves—engineering and construction—than ever before. That is a trend we should welcome enormously and encourage further.

Heidi Allen Portrait Heidi Allen (South Cambridgeshire) (Con)
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I just want to say, “Thank you.” An awful lot of R and D funding will help my constituency. Scientific businesses in South Cambridgeshire have been worried since Brexit, so I thank my right hon. Friend for that. East-west rail links and road links will help us to spread that prosperity. Overall, I thank him for the money on universal credit. That was a difficult decision. It is not everything that we wanted, but I very much welcome the money that he put aside for universal credit, and I thank him.

Lord Hammond of Runnymede Portrait Mr Hammond
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I am grateful to my hon. Friend for her generous words.

The Economy and Work

Heidi Allen Excerpts
Thursday 26th May 2016

(8 years, 6 months ago)

Commons Chamber
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Edward Leigh Portrait Sir Edward Leigh
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We can certainly try it, but the difficulty is that we would have parish councils, district councils, a county council—which, by the way, the Conservatives have controlled for most of the last 100 years —an elected mayor, a police and crime commissioner, a Member of Parliament and a Member of the European Parliament. It would just be too much, frankly. Too many jobs for the boys!

Heidi Allen Portrait Heidi Allen (South Cambridgeshire) (Con)
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Would my hon. Friend consider jobs for the girls too?

Edward Leigh Portrait Sir Edward Leigh
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Absolutely. My hon. Friend has made some important contributions to our debates in the past year and I welcome what she says. I know that she has taken an interest in tax credits, and I believe that we have to make more progress in cutting welfare in order to cut the deficit, but it is probably a mistake to cut the welfare benefits or tax credits of people who are already on small incomes and depending on their tax credits. We have to give plenty of warning if we are going to do that. That is surely the lesson that we should learn from the debate on the raising of the pension age for women. We should have given proper notice of that. We did give 20 years’ notice, but we did not write to every woman saying, “Dear Mrs Jones, your pension age will be increased in 20 years’ time.” That is what we should have done, and we should learn from that.

On the point made by the hon. Member for Dundee East (Stewart Hosie), I am an enthusiast for lower regulation and lower taxes, but we have the longest tax code in the world, and there is still much progress to be made in that regard. My right hon. Friend the Chancellor knows, because I have said this to him again and again, that I hope he will try to simplify the tax and benefit system with every Budget he introduces. I hope that he will strip away allowances and converge taxes so that we no longer have armies of accountants advising people how to avoid tax. We have made all too little progress on simplifying and converging our tax system. I know that it is difficult. I know that we cannot do it all in one step. I know that we cannot have an absolutely flat tax system because the top 1% of earners pay 25% of all taxes. I know all that, but we should make more progress every year in simplifying and merging the tax system.

Before I sit down, the Chancellor talked about announcements that have been made today, but there was an important announcement on immigration figures. The fact is that we still have net migration of 300,000 people into this country every year. It is absolutely unsustainable. We welcome people from eastern Europe coming to work here. I more than any other welcome Polish people and their culture of hard work. However, net migration of 300,000 people a year, fuelled by the imposition of the living wage on businesses and by an unreformed tax credit system, is simply unsustainable, particularly for London and the south-east. There is a vision of Britain leading the world towards free trade, controlling its own borders and proclaiming the supremacy of Parliament, and that is why, on 23 June, I for one shall be voting to leave the European Union.

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Heidi Allen Portrait Heidi Allen (South Cambridgeshire) (Con)
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Somebody once told me that there is no such thing as luck. Luck, they said, is a place where opportunity and preparation meet. Many of us in this Chamber will have grown up with everything pretty much sorted: a stable family, a decent household income, a great education and good health—that perfect mix that prepared us to control our lives and to make use of opportunities that came our way.

When we talk about a life chances strategy, therefore, we are talking about identifying the things the Government can do to plug the gaps for individuals who are not as fortunate as us and for whom one of those key ingredients is missing. I applaud the Prime Minister for making this one of the essential themes in his work. It is certainly why I came into politics. Now we have the challenge of translating that policy aspiration into detail. That challenge is huge, not just because we are still recovering from economic turbulence, but because one of the solutions cannot be so easily measured, nor have metrics attached. People transform the lives of others, with hearts, heads, promises, support, mistakes sometimes, but above all trust.

Returning to my premise that this is all about opportunity and preparation, Government can certainly develop policy to provide the opportunities, and they have done that very well already, with an improving economy, record levels of employment, an increase in the minimum wage, transformation of the benefits system, investment in the NHS, and help to buy schemes. Admittedly, we would all agree that we have much more to do on affordable housing, especially in constituencies like mine, and we are still uncovering the enormity of the mental health challenge, but overall those policies will provide those essential opportunities, and many millions of people are benefiting from them already. Focusing on the preparation part of the luck equation, how do we help those who do not have those building blocks? When I think of all the people I know who have transformed their lives, the single common denominator has, without fail, been another person. There may have been Government interventions in the mix somewhere—a grant to set up a business, perhaps—but alone that would not have been enough. When you really need to turn your life around, you need another human being to help you.

Every Government Department has a role to play. Ministers need to identify where people touch their Departments and embed the big society in their areas of responsibility. The Department for Communities and Local Government has been fantastic on troubled families. Croydon Council is doing amazing work to break down internal silos to put the best interests and potential of its residents at the heart of everything it does. I applaud the Department for Education for its work on local employees being mentors for children. What about the parents, too? Think of Billy Elliot’s father! Our GPs are also at the heart of this support, but Lord knows, they are at breaking point and they may need the extra funding to be provided now.

Another army of mentors and champions is desperate to help this revolution—those in the third sector, almost totally frozen out of the Work programme but desperate to get involved. We should bite their hands off and bring their expertise to the centre of this debate. One thing they have in abundance, far more than any politician or Government, is trust in the people they want to help.

Tax Credits

Heidi Allen Excerpts
Thursday 29th October 2015

(9 years ago)

Commons Chamber
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Stephen McPartland Portrait Stephen McPartland
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I would like to point out that I do not want a job.

Getting back to the people who are on £11,000 a year or thereabouts and who will be particularly punished by the policy as it stands, I am pleased that the Chancellor is now listening. Although I do not agree with what the House of Lords did, I accept that it has brought us to this position. I want the debate to focus not on constitutional issues but on the loss of income for people who have no ability to make it up elsewhere. How can we help those people?

I have talked about the increase in the personal income tax allowance from £11,000 to £12,500, which will cost about £9 billion. The Government spend over £700 billion a year, yet it seems as though if we cannot find this £4.4 billion it will be the end of life as we know it. We all know that that is not the case. There is a way in which the effects can be mitigated.

How do we reform tax credits without punishing those who are trying to do the right thing—those who get up, go to work and try to move their families forward? Some £3 billion of the £4.4 billion saving is down to the change in thresholds that I spoke about—the initial £1,200 cut. It is an incredibly broad instrument that will punish people whether they earn just over £6,420 or £19,000 and it must be mitigated and changed. We have to find a way around that initial £1,200 cut. It is too much and it goes too far.

There is talk of a discretionary hardship fund. I would certainly welcome that for people who are struggling in one way or another. There has been a lot of talk about national insurance. I would like people not to pay any tax on the first £11,000 or £12,000 of their income, but that will not be looked at fully because it would be incredibly expensive. For me, this debate is about how we can help these families.

Basic macroeconomics suggests to me that if we take £4.4 billion off the people who earn the lowest incomes, that is £4.4 billion that will be taken straight out of the economy, because it will be taken out of the pockets of people who would have spent it right away. Every pound that is taken off those people is a pound that is taken out of the shops in their local economies. It just does not make sense.

I do want to work with the Treasury. I can be a prodigal son and be returned to the fold, I am sure.

Stephen McPartland Portrait Stephen McPartland
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I think you are a little more disliked than I am.

There is huge fear out there among the public. We need to come forward with proposals as fast as we can. I want the Treasury to talk to us, listen to us and work with us. I warn the Treasury that if it does not come forward with mitigation proposals that we find acceptable, we will continue to raise the issue and try to look after the poorest in society. I accept that Britain has 1% of the world’s population, generates 4% of the world’s income and spends 7% of welfare spending. That is too much. I am proud of the Conservative party and will continue to put fairness at the heart of it.

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Neil Parish Portrait Neil Parish
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I could not agree more with my hon. Friend, and I am in politics today to try and make that happen. It is why many of us on the Conservative Benches are prepared to stand up and be counted. It is right that we do so, and our constituents expect it. The Chancellor will say, “We must eradicate the deficit”, and yes, we must, but if we are six months or—dare I say it?—a year late in doing that, people will understand.

Heidi Allen Portrait Heidi Allen
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My hon. Friend is absolutely right. In the last week, I have received hundreds of emails and letters, as hon. Members might expect, and I have been struck by one thing. When we talk about the debt and the deficit, we are not talking about the Government’s debt and deficit; it is the people’s debt and deficit. I have had countless letters from wealthy people telling me this is wrong. It is absolutely right that they be part of this conversation too about how to repair the damage to our economy. It is their vote, as much as it is that of the person losing money in tax credits.

Neil Parish Portrait Neil Parish
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That is right. To coin a phrase, we are all in it together. It is right that we reduce the deficit and balance the books—we cannot go on borrowing forever, because it will be our children, grandchildren and, at this rate, great grandchildren who will pay it off—but we have to do it fairly. I do not apologise for repeating that work must pay, and we must make sure that those in low-paid work can carry on their lives.

Tax Credits

Heidi Allen Excerpts
Tuesday 20th October 2015

(9 years, 1 month ago)

Commons Chamber
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Heidi Allen Portrait Heidi Allen (South Cambridgeshire) (Con)
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Why today? Why have I chosen today, and this debate, to break what I hoped might be the habit of a lifetime in resisting the urge to make a maiden speech? My friends and colleagues will know that I have been trying flipping hard to avoid doing it.

It is not because I did not want to thank my predecessor for the long and dedicated service he gave to South Cambridgeshire and to the Government, though I must admit that sometimes his shoes do feel incredibly roomy for these small feet. Andrew Lansley absolutely deserves our praise, and he will be rightly rewarded next week when he takes his seat in the House of Lords. It is not because I did not want to shout from the rooftops about my constituency. I am certain that I bore everyone rigid about the economic miracle that is South Cambridgeshire; I am so, so proud to represent its people.

It is because today I can sit on my hands no longer. My decision to become an MP is a very, very recent one. It was the Tottenham riots of 2011 that shook me from my comfort zone. Night after night, my television showed me a country that was falling apart—my country—with social breakdown and an economy on the verge of collapse. I felt so strongly that I had to step forward and lend a hand. Today, I feel that way again. So I picked a team—the blue team. I believed they were the party who could bring us back from the brink, and we have started to do that. This Government have taken tough but prudent decisions and employment has reached levels never seen before. Britain is back, and I am immensely proud of this Government for their role in that. So I hope that I will see again those gems of prudence and wise judgment that drew me to the Conservative party, before it is too late.

Too late for what? Too late to stop us getting things wrong, and the timing wrong, on changes to tax credits. Believe me when I say that I entirely agree with the principle that tax credits should not be used to subsidise wages. It is not sustainable and it sends the wrong message about the kind of country and the kind of people that we want to be. Because I know that tax credits do need to change, I cannot support the black and white motion that is in front of us today. I am sorry, but I believe that the Opposition are wrong to say that we must not touch tax credits. However, a detailed debate about them does need to be had, and I am far from being the only Member on the Government Benches who recognises that. It is right that people are encouraged to strive for self-reliance and to find work that pays for their independence from the state, but I worry that our single-minded determination to reach a budget surplus is betraying who we are. I know that true Conservatives have compassion running through their veins.

I have refrained from making a speech so far because sadly most days I feel that Members on both sides of the House are firmly married to their positions regardless of the debate, and so, frankly, why prolong the agony? Why sit in the Chamber for hours when I know I could be concentrating on helping my constituents with immediate needs now? But today is different. Today, every Conservative Member who knows who we really are has a duty to remind those who have forgotten. We are the party of the working person—the person who leaves for work while it is still dark, who strives to provide for themselves and their family with pride: a pride that says, “I will go to work. Even though I still can’t quite make ends meet, I will still go to work, because to work is to have pride, and to have pride is to be British.”

I am not interested in the colour of the Government who created a bloated welfare state—that is in the past. I do not care whose fault it is, but I do know one thing: it is not the fault of the recipients of tax credits. It is the responsibility of Government, whoever they may be—those who set and change policy and those who set the rules by which these families live. If we want to change those rules, we have to support the people through that change. This is not a spreadsheet exercise. This is not a Budget document on a piece of paper. We are talking about real people—working people.

Yes, the income tax threshold has risen and will continue to rise, and that is fantastic. The minimum wage is increasing—brilliant! I am so proud of my Government that they have made this happen. But the timing of changes to tax credits is not concurrent. When we talk about moving towards the ideal goal of a lower-welfare, lower-tax, higher-wage economy, that is right, but I also hear us talking about the financial impact on people “over the Parliament”—that is the phrase I hear. But people on the breadline cannot wait for the Parliament to pass along. Many live hand to mouth every day.

I suspect that you and I could weather such a transition period, Madam Deputy Speaker—we could pull in our belts—but many of the families affected by the proposed changes do not have that luxury. Choosing whether to eat or heat is not a luxury. That is the reality.

Conservatives pride themselves on cutting their cloth according to their means, but what if there is no cloth left to cut? How many of us really know what it feels like? How many of us have walked in those shoes?

To expect people to immediately find more hours or better-paid work suggests, I am afraid, a level of naivety about the skills of some of our people. Also, are we out of touch with the economies and environments of some of our towns and cities? We can support people to get there, and I believe that can be done relatively quickly, but not overnight. That is the crux of the debate and the part that many of us on the Conservative Benches cannot reconcile.

I became an MP to stand up for the vulnerable, to lead the way for those too tired to find it for themselves. That is the role of Government, too. My first loyalty is to those people and it is to them that I now speak. To suggest that some Conservative Members may challenge the Government’s approach only because they fear for their seats is offensive. This is not about retaining votes.

Change is not always a sign of weakness; it can show strength. Did the British public, who were so concerned about immigration before the election, condemn us when we reacted to the photograph of that little Syrian boy? No, they told us to open our arms. When the International Monetary Fund decried our economic plan for not being fast enough and not showing enough growth, we remained steadfast in our belief that slow growth was sustainable. So too must be these changes.

Our debt has been falling consistently while those who need protection have been protected. Is now really the time to change that successful strategy? I would not be embarrassed even once—never mind five times—if we decided to review our approach.

Yes, being in government does mean making tough decisions, but tough decisions must also be strategic. One of the greatest challenges facing my South Cambridgeshire constituency is the affordability of housing. A constituency does not function—a country and its economy do not function—if the people who run the engine cannot afford to operate it. We need every teaching assistant, care worker, cleaner and shop worker to secure this economic recovery. To pull ourselves out of debt, we should not be forcing those working families into it.

The Prime Minister has asked us to ensure that everything we do passes the family test. Cutting tax credits before wages rise does not achieve that. Showing children that their parents will be better off not working at all does not achieve that. Sending a message to the poorest and most vulnerable in our society that we do not care does not achieve that, either.

I believe that the pace of these reforms is too hard and too fast. As the proposals stand, too many people will be adversely affected. Something must give. For those of us proud enough to call ourselves compassionate Conservatives, it must not be the backs of the working families we purport to serve.

None Portrait Several hon. Members rose—
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