Employee Share Ownership Schemes

Debate between James Cartlidge and Lucy Frazer

Tuesday 6th September 2022 Westminster Hall

[Lucy Frazer]

I appreciate the points that the right hon. Member has made. Stakeholders and employees may not otherwise intend to remain with their current employer for five years, which is why the tax relief is designed to encourage a long-term commitment, but I appreciate the suggestion of a one-year SAYE and less regular contributions.

[James Cartlidge]

On that point, what the right hon. Member for Knowsley (Sir George Howarth) said is very compelling, because the labour market has changed and there is more churn. I was persuaded that a shorter qualifying period, perhaps with other conditions, would be reasonable, given that the employee may have the best intentions of staying longer but the labour market has changed.

[Lucy Frazer]

I thank both my hon. Friend and the right hon. Member for Knowsley for their interventions. I was going to say that if evidence could be presented of the impact of that on people taking up the scheme, I know that the Treasury would be very interested in looking at that. As my hon. Friend said, it is important that the schemes are as simple as possible, and I would welcome any suggestions on that point.

With its current restrictions, SIP remains popular. We see people making use of the greatly beneficial tax treatment, with a total value of £780 million in shares purchased or awarded under a SIP scheme in the financial year 2020-2021. We continue to evaluate the schemes to make sure that they are incentivising the behaviours that I have outlined. We keep these important and advantageous schemes under review to make sure that they provide value for money for the taxpayer, support the wider aims of the economy and help employers to drive commercial success.

We launched a review at Budget 2020 to ensure that the EMI provides support for high-growth companies to recruit and retain the best talent so that they can scale up effectively, and to examine whether more companies should be able to access the scheme. At the spring statement, the Government concluded that the current EMI scheme remains effective and appropriately targeted. None the less, the scope of the review was expanded to consider whether the company share option plan should be reformed to support companies as they grow beyond the scope of the specifically targeted EMI. I know that these companies might want to make use of other discretionary schemes, such as the CSOP. While our inclination is to support those companies in doing so, Members will understand that we want to build the evidence base before committing resources, which is why we have expanded our review to include CSOP.

As part of the Government’s duties to evaluate tax reliefs and their value for money on an ongoing basis, we are currently reviewing the broader share scheme landscape. We will keep these important and advantageous schemes under review.

Courts and Tribunals (Judiciary and Functions of Staff) Bill [Lords]

Debate between James Cartlidge and Lucy Frazer

3rd reading: House of Commons & Report stage: House of Commons
Wednesday 12th December 2018 Commons Chamber

[Lucy Frazer]

I am happy to come on to the three reasons why amendments 2 to 4 cannot be accepted. First, the amendments are not necessary. The functions are already being carried out, and carried out well, by those with lesser qualifications than those sought by the hon. Member for Bolton South East. The qualification requirements for legal advisers in the magistrates court and family court are currently set out in regulations made by the Lord Chancellor, as they have been since 1979, and amendments 2 and 3 would raise the qualifications bar significantly higher than the current regulations and would rule out a large proportion of Her Majesty’s Courts and Tribunals Service staff from giving legal advice in future.

[James Cartlidge]

There are many people in the Chamber with huge legal expertise. All I can claim is spending my year off as a junior outdoor clerk, for which the only qualifications needed were a ponytail and a cockney accent, as far as I could see. From my short experience I discovered the huge number of staff who make up our courts and keep them ticking along. They might be administrative functions, but we should not be afraid of reforming our courts to give those people greater roles that help them to make more of their career.

[Lucy Frazer]

My hon. Friend makes an important point. Not only is it important to ensure that the qualifications match the role, but these reforms will ensure good career progression for competent and organised staff. Similarly, in relation to amendment 4, it is already the case that some staff can exercise judicial functions in almost every jurisdiction except the Crown court. The range of functions they can carry out varies enormously, as my hon. Friend the Member for Thirsk and Malton (Kevin Hollinrake) pointed out earlier, from legally qualified legal advisers in the county court setting aside default judgments to non-legally qualified caseworkers in the lower tribunal dealing with postponement requests and issuing strikeout warnings.

Accepting amendment 4 would rule out a large proportion of those staff, who are already exercising judicial functions and who may have been doing either or both for a number of years. Such a loss of expertise would be particularly damaging and would impact on the service that Her Majesty's Courts and Tribunals Service can provide. The hon. Member for Bolton South East suggested that introducing authorised staff was damaging to justice, but I did not hear any examples of inappropriate action by any of our current staff who do not currently have those qualifications and who are already carrying out these roles.

Trade Union Bill

Debate between James Cartlidge and Lucy Frazer

Tuesday 10th November 2015 Commons Chamber

[Lucy Frazer]

I will not give way, as I wish to press on.

I was not a member of the Bill Committee, but I have read some of the submissions on this issue from the unions. The Fire Brigades Union said that it had met the thresholds in its recent ballots. Such unions, which are already ensuring an effective turnout, need not be concerned about this proposed legislation. Furthermore, they do not need to be concerned about the provisions as they currently stand, unamended in the Bill. Indeed, where it is right that action should be taken—it is clear that this method of negotiation is needed—they should be confident that their members will make every effort to vote for it.

These measures are meant to ensure that, where there is not such support, the interests of the public are protected and weighed into the balance. In one intervention in this debate, it was suggested that the thresholds have been met in transport. In fact, the bus drivers strike earlier this year took place at the behest of a turnout of 21%, inconveniencing all the workers who were attempting to get to work. Transport for London reported that there were 6.5 million passengers in London who needed to make alternative arrangements.

[James Cartlidge]

I am sure my hon. and learned Friend will agree that those people will be among the most vulnerable and lowest paid in the city who rely entirely on that transport system.

[Lucy Frazer]

That is absolutely right. When there are strikes, the people who suffer are the low paid workers who have to get alternative childcare, whose hospital appointments are affected and who cannot get to work.