Loan Charge

Debate between Iain Duncan Smith and Neale Hanvey

Thursday 18th January 2024 Commons Chamber

[Neale Hanvey (Kirkcaldy and Cowdenbeath) (Alba)]

I begin by thanking the right hon. Member for East Antrim (Sammy Wilson) for bringing forward this incredibly important debate. The issue has been live for far too long, and the damage that has been inflicted on thousands of ordinary workers—whether freelancers, contractors or temporary workers—and their families by the loan charge is distressing. The comparison that he drew with the Horizon scandal is real. This is a serious injustice, but what is different from the Horizon scandal is that at least the Horizon victims had the appearance of justice. It may not have been justice, but they had the appearance of it.

As the hon. Member for Buckingham (Greg Smith) made clear, HMRC has persisted and acted as judge, jury and executioner with a ruthlessness that I cannot believe. I have been in meetings with HMRC and it has advised me, “We will never put people under enormous pressure. We will not take more than 50% of their disposable income to recover the costs,” but that is simply not true. The ferocity with which it has gone after my constituents and the amounts of money it has demanded are eye-watering—it is completely impossible for my constituents to meet its demands.

[Sir Iain Duncan Smith]

A simple point occurs to me: the real similarity between the Horizon programme and this situation is that those who were prosecuted under Horizon and put in jail and so on had it put about by the Post Office that they were greedy people who had stolen money, so the public at first did not have any sympathy. Similarly, in this matter, HMRC has basically said that they were greedy people evading tax that other people then had to pick up and pay. The public still have not picked up on that. These people were not doing that—that is the key point—and breaking through that will get public support for something to change.

[Neale Hanvey]

I thank the right hon. Gentleman for that point. Not only were the victims of the loan charge victims of mis-selling; they are now the victims of HMRC’s pursuit of them for every penny they can possibly earn. That is not just now, but for future years, so that point is incredibly important.

It is important to remember that we had an opportunity a number of years ago to write off the retrospective element, with new clause 31 to the Finance Bill, which was supported by the loan charge and taxpayer fairness all-party parliamentary group. Unfortunately, because of the timidity of some Members, that new clause was not put forward for a vote. That is deeply regrettable.

It is important that I speak about my constituents, who are my main concern in all this. Four years ago, I spoke about the horrific plight of my constituent Doug Aitken, who was facing a bill of £500,000. To pay that off, he would lose his house and his car. As a self- employed person, he would lose his business, because he would be bankrupt. The Government simply did not listen. He was one of those who had successive completed and closed tax years that were reopened by HMRC, and he was being charged exorbitant, unjustifiable and unjustified rates for all the supposed earnings he had secreted away.

Today I want to speak about another constituent of mine, Alan Geddes, who has a disposable income of £360 a month. The payment demanded by HMRC from Mr Geddes is £783 a month for the next 12 years. That is not the only charge it is asking him to pay; it is also asking him to pay £50,000 up front.

BACKBENCH BUSINESS

Debate between Iain Duncan Smith and Neale Hanvey

Thursday 30th June 2022 Westminster Hall

[Neale Hanvey (Kirkcaldy and Cowdenbeath) (Alba)]

I pay tribute to the hon. Member for Penistone and Stocksbridge (Miriam Cates) for securing this really important debate, although there is clearly a separate legislative process in Scotland, as the hon. Member for Strangford (Jim Shannon) just said. I recognise the support and assistance that she has offered me during my time in this place, and the support from other Members present.

While this debate is England and Wales-focused, it is important to highlight the Scottish perspective. This is not a matter of moral outrage or social conservatism, which is a label that is often used. This, for me, is essentially, fundamentally, about safeguarding. Safeguarding has been a constant in my professional life, from my early days in mental health care and looking after vulnerable people through that lens, right up to working with children and young people in cancer care. The principles are about engendering a broad awareness in an organisation of the kinds of issues that may be faced and the kind of red flags that may be seen. It is a shared responsibility and one, I believe, that everyone in society should participate in. It is not something that we should in any way put at risk.

Awareness has increased in recent years because of misdeeds in religious circles, among sports coaches and teaching staff, and indeed, from my experience, in healthcare, where people have used their position of influence and authority for nefarious purposes. Those who will abuse will find a way, and that is just a matter of fact. Predators will go to great lengths to access those they prey upon.

How have we responded as a society? We have had “stranger danger” education, public awareness, and the introduction of safeguarding legislation and policies. We have dealt with concerns in an open and non-judgmental way. We have set up multi-disciplinary practices through child protection teams and vulnerable adult teams. We have not jumped to conclusions and ascribed labels to individuals, but we have taken the necessary steps to explore any circumstance to ensure that, if there is harm, it is limited and is stopped where that is the case. We have the disclosure and barring service down here and Disclosure Scotland in Scotland to ensure that those with a criminal history of a predatory nature are identified and prevented from entering certain spheres of life.

In my professional life, I have had enhanced disclosure in every single job that I have had. It has never been a particular issue, but there are implications of the use of deed poll to change one’s identity, along with growing concerns about GRC identity changes. On the DBS in particular, I met with an organisation this morning that told me of privacy concerns whereby people who use that method, or indeed deed poll, may be able to circumvent the disclosure of prior history. I suggest that the national insurance number could be used as a constant identifier to deal with that.

But there are other ways that we find out about these nefarious practices: disclosure from the child or the young person themselves, witnesses, evidence and indeed criminal investigation. In that vein, a teacher in Scotland was recently sent to jail for three years for molesting two young boys, one aged 11 and one aged 12. That investigation was peppered with the sexualised language that that teacher used with those young men. Like all predatory behaviour, this was about power, control and manipulation, and it included that sexualised use of language.

In terms of parents and safeguarding, we must look out for changes in the behaviour of the young person—whether they become withdrawn or start to use overly sexualised language. Those are the red flags that are normally identified by professionals working with young people, whether social workers, teachers or indeed healthcare workers. If we introduce the type of language and knowledge that the hon. Member for Penistone and Stocksbridge mentioned in her opening remarks—the dice game is utterly shocking; it is dehumanising and reduces sex to the penetrative act—

[Sir Iain Duncan Smith]

Does this not boil down to the very simple point that knowledge without context or consequence is dangerous? Children at these ages, who are often in doubt about who they are, where they are and what they do, and who are sometimes shy and retiring, are very vulnerable to that knowledge leading them down a road, without the understanding of the context and consequences that will come from the decisions that are made, which they may be too young to judge. If that principle were applied, a lot of what my hon. Friend the Member for Penistone and Stocksbridge (Miriam Cates) has said would disappear from the curriculum because it would be inappropriate.

[Neale Hanvey]

The right hon. Gentleman makes a very important point about capacity. It is simply impossible for someone who is seven to have the ability to comprehend their adult sexual being. It is simply unattainable.

Introducing such sexualised language will camouflage or mask the red flags and that is dangerous. There is no place for adult sexualised language in pre-puberty education.