Ukraine: Military Equipment

Debate between James Cartlidge and Jonathan Edwards

Tuesday 27th February 2024 Commons Chamber

[James Cartlidge]

My right hon. Friend, who speaks with great passion, is right to talk about the need to hold Russia to account. We have said that repeatedly. We have said that in reference both to the war itself and to specific actions, such as those involving Alexei Navalny and so on. We are under no illusion about the nature of that regime and what would happen if it were to succeed. We have had that view right from the beginning, and it is brilliant that so many countries have joined us in that effort. I strongly believe that without our efforts Ukraine would not still be in the fight. How do we keep the Ukrainians there? We must keep providing the munitions that we have described, keep training the personnel in Interflex, and keep ensuring that our allies join us in all of those efforts.

[Jonathan Edwards (Carmarthen East and Dinefwr) (Ind)]

The US State Department has reportedly calculated that North Korea has delivered 10,000 containers of munitions to Russia for deployment in Ukraine. What can be done to disrupt the supply chain?

[James Cartlidge]

That is not a straightforward question to answer. As I said right at the beginning about the things that ultimately come from military intelligence, these are sensitive matters, but the hon. Gentleman can rest assured that these are priorities that we look at very closely with our international partners.

IMF Economic Outlook

Debate between James Cartlidge and Jonathan Edwards

Tuesday 31st January 2023 Commons Chamber

[James Cartlidge]

I was clear about the challenges this year in respect of inflation, which is why we need to have fiscal discipline. That is not something the Scottish National party has the slightest understanding of, because I only ever hear SNP Members ask for more spending and more tax cuts—all unfunded. Meanwhile, their fundamental policy, were they to be independent, is to have a currency without a lender of last resort. That is an extraordinary proposition for economic instability, so we take no lectures from them. We have done everything possible to support people in every part of the United Kingdom, including Scotland.

[Jonathan Edwards (Carmarthen East and Dinefwr) (Ind)]

I suspect there is not much hope of significantly boosting overall productivity unless we deal with the huge geographical wealth imbalances across the UK. What consideration has been given to using the so-called Brexit freedoms? In the case of Wales, that could involve devolving VAT and corporation tax to empower the Welsh Government to get on with the job of boosting the Welsh economy. If these powers—the so-called Brexit freedoms—are not going to be used, is the Welsh economy not far better off back in the European single market and the customs union?

[James Cartlidge]

The hon. Gentleman knows there is enormous benefit to Wales from being part of the United Kingdom. I have set out the many ways that we are boosting this country, and I gave the example of the changes to Solvency II regulations. They will hopefully see a significant increase in infrastructure investment, which will be of massive benefit to every part of the United Kingdom, including Wales.

Russia: UK Companies

Debate between James Cartlidge and Jonathan Edwards

Wednesday 7th December 2022 Commons Chamber

[James Cartlidge]

I always enjoyed working with the hon. Gentleman in my previous position at the Ministry of Justice. He makes an extremely powerful point. The abuses that we have seen have been horrific, and he is right to draw attention to them. A great range of activities are taking places in that regard—for example, the significant support that we have given to the International Criminal Court at The Hague so that it can look into those abuses. Of course, it will be very difficult until we get a resolution to the conflict, which is why the most important thing we can do in all these cases is to continue supporting the people of Ukraine, their armed forces and the humanitarian effort.

[Jonathan Edwards (Carmarthen East and Dinefwr) (Ind)]

I fully support the right hon. Member for Barking (Dame Margaret Hodge) in her efforts. Would not one way to dissuade UK companies from investing in Russian oil assets and to encourage disinvestment be to prohibit any such companies from benefiting from the North sea windfall tax investment allowance?

[James Cartlidge]

The hon. Gentleman asks an interesting question, knitting together two points. To be fair to him, I have to say that he has consistently attended all the recent Treasury debates at which I have been present. I am grateful to him for that.

We should not confuse divesting and investing. We are clear that there is an outright ban on investing in Russia: the Prime Minister said back in March, when he was Chancellor, that there was “no case” for such investment. Divestment is happening. It is a process that for some companies will take time, but I think we are all clear that we want to see it happening.

The hon. Gentleman is absolutely right to highlight the windfall tax. While it will raise more than £40 billion to support our economy, help us fund public services and, above all, support people with energy bills this winter, it does have a generous allowance. Let me be clear about the reason why, which goes back to my answer to my hon. Friend the Member for Barrow and Furness (Simon Fell): while we want to raise funds from the levy, we also want to incentivise investment in energy security. Ultimately, the long-term answer to the question of how to defend ourselves against being held to ransom over energy prices is by ensuring our energy security for the future.

Finance Bill

Debate between James Cartlidge and Jonathan Edwards

2nd reading
Monday 28th November 2022 Commons Chamber

[Clive Efford]

Will the Minister give way?

[Jonathan Edwards (Carmarthen East and Dinefwr) (Ind)]

Will the Minister give way?

[James Cartlidge]

If the hon. Member for Eltham (Clive Efford) will forgive me, we have some interest from another part of the House, so will I take an intervention from Wales, from the hon. Member for Carmarthen East and Dinefwr (Jonathan Edwards).

[Jonathan Edwards]

I am grateful to the Minister. I welcome the announcement in the Bill that reduces the additional rate level to £125,000. The calculations I have seen show that somebody earning £150,000 will pay about 1% more in income tax, so this is definitely a step in the right direction. However, somebody earning £1.5 million will pay only 0.1% more as a result of the proposals. Does that not make the case for a further band to be created for those earning very high wages? My understanding, if my history lessons were correct, is that the Thatcher Government, for instance, had a 60% rate.

[James Cartlidge]

The hon. Gentleman makes an interesting suggestion. He will not be surprised to hear that I do not announce new tax bands from the Dispatch Box on Second Reading of a Finance Bill. I can confirm, however, that those earning £150,000 or more will pay just over £1,200 more in tax every year. That is the precise figure.

For the final time, I give way to the hon. Member for Eltham.

Energy (oil and gas) profits levy

Debate between James Cartlidge and Jonathan Edwards

Tuesday 22nd November 2022 Commons Chamber

[James Cartlidge]

The hon. Gentleman asks a perfectly good question. He will be aware that we have made huge progress on closing the tax gap, which effectively means that we are making huge progress on cracking down on tax avoidance. There is always further to go, but we have scored significant savings from those measures over the forecast period.

The upshot is what the Chancellor rightly called a “balanced path to stability”. We are tackling inflation to help all our constituents with the cost of living, while at the same time providing the stability that business needs to be able to invest and grow. We want low taxes and sound money, but sound money has to come first.

[Jonathan Edwards (Carmarthen East and Dinefwr) (Ind)]

What worries me about the Budget is the lack of focus on how the economy will grow in subsequent years. If we have an austerity Budget, public investment is falling; exports are falling because of Brexit; and consumer spending is going to fall because household budgets are being crushed by the cost of living crisis. That leaves business investment. Are businesses seriously going to invest when all other areas of growth are collapsing?

[James Cartlidge]

I am grateful to the hon. Gentleman. The key issue for growth at the moment is inflation. What on earth do we think is causing consumers to rein back spending? The answer is that this year, this country will have to find an additional £150 billion to pay for the higher cost of energy—that is the equivalent of an entire NHS. Yes, we are taking difficult decisions, but that is the best way to ensure that we get inflation down, in partnership with the independent Bank of England, and build the platform of stability that businesses need to grow and invest. On the point about Brexit, if it was causing the problems, why do the Netherlands and Germany have higher inflation? He should think about that.

On tax, the House will have heard the Chancellor say that we will be fair by asking those who have more to contribute more, and by avoiding tax rises that most damage growth. That means, for example, that while some taxes are rising, we have not raised headline rates of taxation. Tax as a percentage of GDP, meanwhile, will increase by just 1% over the next five years.

On personal taxes, we are reducing the threshold at which the 45p rate becomes payable from £150,000 to £125,140, which means that those earning £150,000 or more will pay just over £1,200 more a year. At the same time, we are maintaining at current levels the income tax personal allowance, the higher rate threshold, the main national insurance thresholds and the inheritance tax thresholds for a further two years until April 2028.