Oral Answers to Questions

Debate between Helen Goodman and Harriett Baldwin

Tuesday 27th March 2018 Commons Chamber

[Harriett Baldwin]

I pay tribute to my hon. Friend and her remarkable track record of campaigning on this issue. She is absolutely right to highlight the fact that, according to the Living Planet Index, global populations of fish, birds, mammals, amphibians and reptiles declined by 58% between 1970 and 2012. It is therefore crucial that, as a world, we work together to tackle this terrible crime.

[Helen Goodman (Bishop Auckland) (Lab)]

On average, the UK Border Force seized 130 kg of illegally trafficked ivory in the years from 2013 to 2016, but in 2017 the figure fell to 40 kg. Is that because the trade is shrinking or because the Government are not catching as much?

[Harriett Baldwin]

It is testament to the incredibly important work that is done by the UK Border Force and the work that we do through the National Crime Agency overseas. In Côte d’Ivoire recently, I saw the work that we are doing with the police force on this worldwide phenomenon. We need to work together internationally to tackle this heinous crime.

Same-Sex Marriage in Bermuda

Debate between Helen Goodman and Harriett Baldwin

Thursday 8th February 2018 Commons Chamber

[Harriett Baldwin]

Yes, I will. By allowing the urgent question today, Mr Speaker, you have allowed colleagues to express the views held very strongly in this House. On the ongoing discussions, as my hon. Friend will be aware, there will be a range of opportunities for Government interlocutors from the United Kingdom to interact with those from Bermuda. He will also be aware that this was put into the manifesto of the party that was successful at the last election. Although we in the United Kingdom may disagree with the direction of travel, we have decided in these circumstances not to intervene.

[Helen Goodman (Bishop Auckland) (Lab)]

Thank you, Mr Speaker, for granting this urgent question. I thank my hon. Friend the Member for Rhondda (Chris Bryant) for so eloquently and passionately putting the case against this shameful piece of legislation, which turns same-sex couples into second-class citizens just a year after they had won their equality through the courts.

Following a year in which Australia and Chile have joined the march towards marriage equality, this legislation is a significant step backwards. For that to happen anywhere in the world would be shameful, but for it to happen in a British territory—with the legislation signed by a British Governor, and permitted by a British Foreign Secretary—makes us complicit in something that this House has repeatedly voted against.

The Government say they are disappointed, that there is a difficult balancing act to be made between the will of Bermuda’s Parliament and the views of the British Government and that this legislation tries to bridge the gap between the two. That is not really the case: the legislation is in conflict with Bermuda’s own constitution and Human Rights Act. When it comes to the rights of British citizens, there should be no such thing as a balancing act.

On the powers of the Governor to veto this legislation, the Foreign Office states that

“British Ministers expect the Governor to observe international obligations and protect key values.”

The Minister has just said that the law should be in line with the constitution. How does the Governor’s decision to sign this legislation square with that expectation of protecting key values? Surely LGBT equality is a key value. How is it right for the Governor to sign legislation that overturns the independent decision of the judiciary, conflicts with the constitution, and enshrines not integrity but rank inequality into Bermuda’s administration of justice?

[Harriett Baldwin]

The hon. Lady is right to highlight the progress being made around the world on this issue, and our overseas territories observe different states of that legislative progress. Five Caribbean territories—Anguilla, the British Virgin Islands, the Cayman Islands, Montserrat, and the Turks and Caicos Islands—currently have no recognition at all of same-sex unions, and I repeat our disappointment that the Act in Bermuda removes the right for same-sex couples to marry. Against that, however, we must balance issues of self-determination, and having carefully considered those issues, the Secretary of State decided that in this case it would not be appropriate to use his powers to block the legislation. Such powers can be used only where there is a legal or constitutional basis for doing so, and even then only in exceptional circumstances. His judgment was that when engaging with the British overseas territories we must respect the fact that they are separate, self-governing jurisdictions with their own democratically elected representatives that have the right to self-government.

Bank of England and Financial Services Bill [Lords]

Debate between Helen Goodman and Harriett Baldwin

3rd reading: House of Commons & Report stage: House of Commons
Tuesday 19th April 2016 Commons Chamber

[Harriett Baldwin]

I am speaking very narrowly to new clause 12. I am sure the Treasury Committee and other Committees will look at the issue again. I expect it to be part of the ongoing discussions between Parliament and the Executive. However, I am speaking to the very narrow characteristics of new clause 12.

Since we tabled our new clause, there have been further discussions with the Chair of the Treasury Committee over its role in the appointment of FCA chief executives. I am pleased to announce that we have found a means of reinforcing its scrutiny role that goes further than the context of this Bill. Indeed, today the Chancellor has written to the Chair of the Treasury Committee, agreeing that the Government will make appointments to the role of chief executive of the FCA in such a way as to ensure that the Committee is able to hold a hearing before the appointment is formalised.

[Helen Goodman (Bishop Auckland) (Lab)]

Is the letter in the Vote Office if it has already been penned?

--- Later in debate ---

[Harriett Baldwin]

The letter is in my binder and I would be happy to read it out, provided that the Chair of the Committee does not object. I will ensure that a copy is put in the House of Commons Library, if that has not already happened. I am sure that the Chair of the hon. Lady’s Committee will be more than happy to share it with her. Would she like me to read the letter out in full?

[Helen Goodman]

Read it out!

[Harriett Baldwin]

By popular demand, this is what the letter states:

“Dear Andrew,

During the passage of the Bank of England and Financial Services Bill, we have considered the role of the Treasury Select Committee (TSC) in scrutinising the appointment of the Chief Executive of the Financial Conduct Authority (FCA).

This scrutiny is important and welcome. I will therefore ensure that appointments to the Chief Executive of the FCA are made in such a way to ensure the TSC is able to hold a hearing, after the appointment is announced but before it is formalised. Should the TSC recommend”—

this is more exciting news—

“in its report that the appointment be put as a motion to the whole House, the government will make time for this motion and respect the decision of the House.

Additionally”—

it does not stop there—

“I will seek, in a future Bill, to make a change to the legislation governing appointments to the FCA CEO to make the appointee subject to a fixed, renewable 5-year term. This would not apply to Andrew Bailey, who I recently announced as the new head of the FCA, but would first apply to his successor.

I believe that these changes will reinforce the Treasury Committee’s important scrutiny role.”

[Harriett Baldwin]

I am sure that the shadow Chancellor welcomes Government new clause 12 and the news that we will carefully consider the earliest possible opportunity for doing that, following today’s debate.

As the letter states, should the Treasury Committee follow the pre-commencement hearing with a report recommending that the appointment be put as a motion to the whole House, the Government will make time for that motion and, should it result in a vote, they will respect the decision of the House. We will also seek an opportunity to alter the legislation governing appointments to the FCA chief executive officer, to make the appointee subject to a fixed, renewable, five-year term. I can confirm that Andrew Bailey, the new CEO of the FCA, has been appointed to a five-year term that can be renewed, so the agreed process will first apply to his successor. The agreement is the right way to reinforce the crucial scrutiny role of the Treasury Committee.

[Helen Goodman]

I am grateful to the Economic Secretary, who is being extremely generous with her time. What she has said is extremely welcome and a significant step forward. Will she explain why the Chancellor thought it better not to insert it in the Bill, but to make the arrangement through an exchange of letters?

Bank of England and Financial Services Bill [Lords]

Debate between Helen Goodman and Harriett Baldwin

Monday 1st February 2016 Commons Chamber

[Harriett Baldwin]

With the leave of the House, Mr Deputy Speaker, I would like to speak for a second time.

I commend the fact that we have had a wide range of speeches, with 12 by Back Benchers from, I am pleased to say, almost across the country. We heard from my right hon. Friends the Members for Chichester (Mr Tyrie) and for Cities of London and Westminster (Mark Field), the hon. Members for East Lothian (George Kerevan) and for Bassetlaw (John Mann), my hon. Friend the Member for South West Devon (Mr Streeter), the hon. Member for Carmarthen East and Dinefwr (Jonathan Edwards), my hon. Friend the Member for Havant (Mr Mak), the hon. Member for Bishop Auckland (Helen Goodman), my hon. Friend the Member for Yeovil (Marcus Fysh), the hon. Member for Kirkcaldy and Cowdenbeath (Roger Mullin), and my hon. Friends the Members for Newark (Robert Jenrick) and for Dudley South (Mike Wood). I will deal with some of the questions they asked later.

This has been a very revealing debate. We have just heard the hon. Member for Wolverhampton South West (Rob Marris) say that he is not satisfied with the creation of the system of regulation that was rightly criticised in 2005 and resulted in the financial crash on Labour’s watch. In fact, Labour Members, by declining to give this Bill a Second Reading tonight, are showing once again that they would be a risk to the livelihoods of everyone, most especially the poorest and the oldest, if they were ever to return to power, because their shadow Chancellor opposes giving a Second Reading to this entirely sensible Bill due to his opposition to the independence of the Bank of England—Gordon Brown’s best decision. His reasoned amendment says that

“the Bill fails to increase oversight and accountability of the work of the Bank of England”.

I thought it might be interesting to see exactly what the shadow Chancellor means by that. In 2012, he said:

“In the first week of a Labour Government democratic control of the major economic decisions would be restored by ending the Bank of England’s control over interest rates and bringing the nationalised and subsidised banks under direct control”.

That is what his reasoned amendment implies. In setting up his review of monetary policy, he said:

“Perhaps we should be even bolder, creating a national investment bank and using newly printed money to fund it.”

He does not need me to criticise that as a terrible idea that would cause inflation—he should look no further than his predecessor as shadow Chancellor, the hon. Member for Nottingham East (Chris Leslie), who said:

“Printing money and ending Bank of England independence would push up inflation, lending rates, squeeze out money for schools and hospitals and mean spending more on debt servicing. Higher inflation and a higher cost of living would hit those on the lowest incomes, the poorest people who couldn’t afford those goods and services.”

That is the reality of the Opposition’s economic policies with regard to the Bank of England. Inflation is a tax on the poorest, and they would hit the poorest hard.

[Helen Goodman]

rose—

[Harriett Baldwin]

Does the hon. Lady agree with that policy?

[Helen Goodman]

Surely the hon. Lady knows that it is the current Chancellor who has printed, as she puts it, £175 billion of money, and in doing so has increased the wealth of the top 5% in this country by £185,000 each.

[Harriett Baldwin]

I do worry about the hon. Lady sometimes, because she is again criticising the decisions of the independent Bank of England.

That is before we get to the Opposition’s other policies, such as bringing back secondary picketing, banning dividends, and nationalising businesses without compensation. Even Danny Blanchflower, the head of the independent review that the shadow Chancellor has set up to look at the remit of the Bank of England—

Finance Bill

Debate between Helen Goodman and Harriett Baldwin

Tuesday 8th September 2015 Commons Chamber

[Harriett Baldwin]

What a pleasure it is to serve under your Chairmanship this evening, Ms Engel.

Clauses 16 and 17 and schedules 2 and 3 make changes to the banking tax regime. They will ensure that banks continue to make a fair contribution to the economic recovery in a way that does not harm the UK as a global financial centre or affect banks’ ability to support the economic recovery.

It might be helpful if I set out the background to the Government’s approach to taxing the banking sector. In his first Budget in 2010, my right hon. Friend the Chancellor announced the introduction of the bank levy, an entirely new tax on banks’ balance sheets, equity and liabilities. The levy had two objectives. First, at a time when banking profits were low, it was designed to ensure that banks made a fair contribution to the taxman to reflect the risks that they pose to the UK economy —risks that were made very clear in the extraordinary events of 2008. Secondly, the levy was designed to complement the developing regulatory regime by providing incentives for banks to reduce the size of their balance sheets and support their activities with more stable forms of funding.

Measured against those objectives, the bank levy has undoubtedly been successful. It raised more than £8 billion across the last Parliament and is forecast to raise a further £17 billion by 2021. It has played a key role in increasing the stability of the UK banking sector, with banks now holding more capital against their assets and being less reliant on short-term risky funding. It has helped to satisfy the UK’s resolution financing obligations under the EU bank recovery and resolution directive, thus supporting the more orderly resolution of banks in crisis. Despite those successes, the Chancellor has been consistent about the need for balance in ensuring that banks pay a fair contribution, while ensuring that this supports the UK as a global financial centre and banks’ ability to support the wider economy.

The Government believe that, as the sector returns to profit, a change is required to maintain that balance. The reforms in the clauses achieve that over the coming Parliament and beyond. The first change is a gradual reduction of the bank levy. Clause 16 reduces the bank levy rate to 0.18% from 1 January 2016 and sets out further reductions to the main rate over the following five years, resulting in a rate of 0.1% from January 2021. The Government have committed to exclude non-UK subsidiaries from the bank levy charge from January 2021, a change we are committed to legislate for in this Parliament.

Clause 17 introduces a surcharge on banking sector profit from January 2016. That is a new 8% tax on the corporation tax profits of regulated banking entities within banking groups. It will apply to profits that exceed £25 million across a group, disregarding the losses that banks have carried forward from periods before the surcharge’s introduction. The first £25 million will benefit from the reductions in the main rate of corporation tax—from 20% today to 19% and then to 18%—included elsewhere in the Bill, giving the UK the lowest rate of corporation tax in the G20. It means that the overall rate of corporation tax will be slightly lower for banks than it was in 2010.

The OBR forecasts that the surcharge will raise £6.5 billion from the sector by 2021. That revenue more than offsets the cost of reductions to the bank levy rate. It means that banks will pay an additional £2 billion in tax over the period, increasing banks’ total additional contributions beyond £23 billion.

[Helen Goodman]

Like many hon. Members, I am sure the Minister has had many letters from small banks and the building societies about the fact that the surcharge will be imposed on them. The Building Societies Association says that it expects it will cost them £630 million over the lifetime of the Parliament, which would be sufficient to fund at least £4 billion in new mortgage lending. That means 15,000 or 20,000 new homes. The effect of including building societies is therefore to make it more difficult for 15,000 or 20,000 families to have a new home. Will the Minister consider whether that is a good idea?

[Harriett Baldwin]

I hope the hon. Lady recognises that the rate paid by building societies and smaller banks will be lower than it was at any time when she and the Labour party were in government. In fact, the measure brings the corporation tax rate to a level lower than when the Conservatives took power in 2010. In addition, 90% of building societies will be exempt from the charge because the first £25 million is exempt from the surcharge.

At the same time, we believe that the changes in clauses 16 and 17 will create a fairer, more competitive and more sustainable basis for taxing the UK banking sector. By rebalancing banks’ contributions towards a tax on profits, future charges will be more aligned with profit and capital accumulation. That reduces the risk of tax affecting banks’ decisions on where to invest and helps to ensure that tax does not impact banks’ ability to lend to businesses and individuals.

By aligning banks’ contributions with their activities in the UK, the changes recognise and reduce the impact of tax on UK banks’ ability to compete in overseas markets. They help to reflect the impact of regulatory reforms, which have reduced the risk of those overseas operations to the UK economy.

I shall draw my brief remarks to a close. The Government firmly believe that banks should make a fair contribution to the economic recovery. However, that contribution must be balanced with the need to maintain the competitiveness of the UK and to support lending to the wider economy. The changes in the clauses provide a better balance between those two objectives, and do so while providing long-term certainty and stability to the sector, and short-term revenue to the taxman. I therefore hope that clauses 16 and 17 and schedules 2 and 3 stand part of the Bill.

Royal Bank of Scotland

Debate between Helen Goodman and Harriett Baldwin

Thursday 11th June 2015 Commons Chamber

[Harriett Baldwin]

I thank my hon. Friend and constituency neighbour for his question, which shows his depth of knowledge. He is right. In my years of managing portfolios, what I paid for investments in the first place was a fact, but managers also have to factor in the future. None of us has a crystal ball. My hon. Friend’s words are wisely taken.

[Helen Goodman (Bishop Auckland) (Lab)]

I welcome the hon. Lady to her new role at the Dispatch Box. Everyone agrees and understands that the RBS shareholding needs to be transferred to the private sector. The Rothschild report states that if shares were sold at the current share price there would be a paper loss of £7.2 billion, which by anybody’s standards is a lot of money. What the report does not show, however, is why the public benefits add up to £7 billion. Could the Minister explain that please?

[Harriett Baldwin]

I thank the hon. Lady, who has great knowledge of these matters, for her question. Any estimate—and the one in the Rothschild report is no different—will be based on the current market conditions. The number that the report cites is, I think, as at 5 June. I note that the share price of RBS has performed well today; there will be different prices in the years to come. The Government have made it very clear that this will not be a quick process; it will take time. We can only project as at today’s prices the £7 billion figure, but it may or may not be a bigger number in the future.

Legislation (Territorial Extent) Bill

Debate between Helen Goodman and Harriett Baldwin

Friday 9th September 2011 Commons Chamber

[Harriett Baldwin]

My hon. Friend is absolutely correct; there has been a substantial body of work looking at exactly how to resolve this question without creating the completely impossible situation of having two classes of MP.

[Helen Goodman]

An interesting point is developing here. I wonder whether the hon. Lady is considering not voting on the Government’s Scotland Bill, in line with what she is saying, and whether the Government are looking to have the support of a majority of Scottish Members for the Scotland Bill before it receives Royal Assent.

[Harriett Baldwin]

The hon. Lady points out precisely why it is so important to resolve in this Parliament some of those complex constitutional issues. There will be others, I am sure, who will refer to the problems of the other House and the fact that there is draft legislation currently in this place about reforms to that House. There might be consequences for that piece of legislation as well.