Oral Answers to Questions

Jane Ellison Excerpts

Tuesday 12th March 2013 Commons Chamber

[Tim Loughton (East Worthing and Shoreham) (Con)]

13. What steps he is taking to ensure that international companies pay the appropriate levels of tax on revenues earned in the UK.

[Jane Ellison (Battersea) (Con)]

15. What steps he is taking to improve international co-operation to tackle tax avoidance. [R]

[The Exchequer Secretary to the Treasury (Mr David Gauke)]

The Government are determined to ensure that multinational companies pay their fair share of tax. The UK is committed to taking multilateral action through the G20 and the OECD to tackle the issues of profit-shifting by multinationals and erosion of the corporate tax base. The OECD presented its initial report on addressing these issues at the G20 meeting in Moscow last month and will present a comprehensive action plan to tackle them at the G20 in July this year.

--- Later in debate ---

[Mr Gauke]

The point I would make is that we want to have an international tax system under which economic activity is taxed where that economic activity takes place. The fact is that the international rules have not moved with the times, but they need to do so, and I am delighted that the Chancellor of the Exchequer is leading the way in this debate.

[Jane Ellison]

Many of my constituents—particularly younger constituents and Church groups—are very interested in this agenda and are closely following what the Government are hoping to achieve this year. Is the Minister optimistic that our international partners will respond positively to this agenda and we can make progress on it?

Tax Fairness

Jane Ellison Excerpts

Tuesday 12th March 2013 Commons Chamber

[Chris Leslie]

I shall put to one side the fact that the Liberal Democrats said one thing in opposition—about, for example, tuition fees—and have done completely the opposite in government. The hon. Gentleman should know that circumstances are now getting worse, especially given the millionaires’ tax cut which will take effect in April. We must do something to revive the fairness of the tax system, and that is why I think it important for the Liberal Democrats to stick to their 2010 manifesto pledge to introduce

“a Mansion Tax at a rate of 1 per cent on properties worth over £2 million, paid on the value of the property above that level.”

[Jane Ellison (Battersea) (Con)]

The hon. Gentleman speaks of fairness. The mansion tax that he proposes would be profoundly unfair on a great many of my constituents who have done nothing more than live in the same house for several decades in an area which, in terms of its property prices, has changed unrecognisably. That applies to many parts of London. I am amazed that London Labour Members do not make similar points. What the hon. Gentleman proposes is akin to a tax on living in London.

[Chris Leslie]

If the hon. Lady thinks that everyone in London lives in a £2 million property, she must be almost as out of touch as her party’s Chancellor of the Exchequer. Of course there are ways of introducing a mansion tax that could take account of the specific circumstances in which people are asset-rich and cash-poor, but there would probably be very few such cases. The Liberal Democrats have thought very carefully about that particular proposition.

Oral Answers to Questions

Jane Ellison Excerpts

Tuesday 29th January 2013 Commons Chamber

[The Chief Secretary to the Treasury (Danny Alexander)]

If the hon. Lady were concerned about child care, I would have thought she would welcome the fact that under this Government the free offer for three and four-year-olds has been increased from 12.5 hours to 15 hours and that this Government have put in place a new offer for the 40% most disadvantaged two-year-olds for 15 hours’ free nursery education at that age. We will bring forward the proposals to which she refers very shortly, and I hope that when she sees them, she will welcome them.

[Jane Ellison (Battersea) (Con)]

T8. Will the Chancellor update the House on a subject on which all Members receive a great deal of correspondence—funding for small businesses? Will he in particular update us on the funding for lending scheme and other similar initiatives?

[The Financial Secretary to the Treasury (Greg Clark)]

I can tell my hon. Friend that in the most recent period, net lending under funding for lending has increased by £500 million. It is also the case that the average interest rate on small business loans has declined by 0.33% since the scheme was introduced.

Autumn Statement

Jane Ellison Excerpts

Wednesday 5th December 2012 Commons Chamber

[Mr Osborne]

The deficit and borrowing are falling any way the public figures are presented. We have done this in a completely transparent way. As I was explaining to the shadow Chancellor, the 4G money has been used to refurbish, for example, the further education college in Morley.

[Jane Ellison (Battersea) (Con)]

I warmly welcome the announcement of the Government’s support for the Northern line extension in the important Nine Elms-Vauxhall development. Does he agree that it is not just the 16,000 new homes and 25,000 new jobs that are important, but the message that such a high-profile scheme sends out to the world beyond the UK—that Britain and London are open for business—is also crucial?

[Mr Osborne]

The Battersea power plant development is, as I said in my statement, as big as the Olympic park—it is an enormous project, and I am very pleased that we have our Malaysian partners investing in the site. We have done our bit by providing this loan and this guarantee that will help to pay for the Northern line extension into Battersea power station. I commend my hon. Friend—I have been to the site with her—and I know what an enormous boost this will be, not just for her constituents but for the whole of London and, indeed, Britain.

Beer Duty Escalator

Jane Ellison Excerpts

Thursday 1st November 2012 Commons Chamber

[Bob Blackman]

I thank my hon. Friend for his intervention. I must declare an interest as a member of CAMRA. I have been a strong supporter of the organisation since I was at university. It is indeed important to promote the responsible drinking of real ale.

[Jane Ellison (Battersea) (Con)]

The problem that my hon. Friend has just raised about developers is particularly acute in London, where development land is so valuable. We have seen more than 40 pubs go in the past six months. A popular Battersea pub, The Castle, which has been in existence for more than 300 years, is now threatened with demolition, precisely because the land is worth more than the pub. Does he agree that this is an acute problem in London?

[Bob Blackman]

Indeed. Pubs in my constituency have been closed down and redeveloped as flats. The loss of those extremely valuable centres results in the destruction of the whole community.

Beer has a relatively low alcohol content. Those who promote the beer duty escalator talk about the health risks related to drinking, but I am a great supporter of responsible drinking and of transferring people to beer drinking, given its relatively low alcohol content. A person would almost have to drink more beer than their capacity would allow in order to damage their health, whereas relatively small quantities of spirits can cause immense damage.

The supermarkets have not only helped to destroy local pubs; they have completely eliminated off-sales from other environments. Anyone can wander into a relatively small supermarket in my constituency today and buy six cans of beer for a fiver, but if they go across the road to the local pub, The Duck in the Pond, they will have to pay £3 for a pint. Why would anyone do anything other than buy beer from the supermarket and wander off home, or drink it on the street? This is causing real damage to the people who are providing these important facilities.

Some people call for minimum unit pricing for alcohol, and I can understand why they do so. I believe that there are huge risks involved in minimum pricing, but we have to address the supermarkets’ predatory pricing and prevent them from subsidising alcohol sales. We need to ensure that they compete fairly with local pubs, rather than ruthlessly getting customers by selling alcohol as a loss leader.

The Treasury’s own figures show that the beer duty escalator will produce only a flat level of income. If that is the case, and if the duty is going to increase year on year, that can only mean that the Treasury is forecasting reduced volumes of beer sales in this country. That can only mean more threats to our pubs and our communities, and there will be implications for other forms of alcohol as well.

--- Later in debate ---

[Jane Ellison (Battersea) (Con)]

Thank you for calling me to speak, Mr Deputy Speaker. I am now officially tail-end Charlotte.

I want to make two brief points, the first of which concerns the nature of the debate, which is an ideal use of Back-Bench time. I congratulate the hon. Members who secured it from the Backbench Business Committee, of which I am a member. The Government have reasonably taken the view that, for the most part, Thursday debates are advisory and give them a steer on what people think about policy, and this really is an advisory debate. It has painted a picture—a vivid mosaic—of the micro-economic growth that is taking place in lots of constituencies all over the country, and many hon. Members have spoken on behalf of enterprises that are far too small to employ clever lobbyists like so many of the big industries do. It is therefore an ideal use of Back-Bench time to allow hon. Members to talk about the incredible enterprises that are growing and generating wealth.

In Battersea, Sambrook’s brewery, which I saw start when I was a parliamentary candidate in 2008, has grown. It is employing more people and brewing more beers. It has gone from being an enterprise that started in 2008 to winning a world beer award last month. We have heard from other hon. Members that that is happening all over the country. Sixty-eight per cent of the small breweries—the micro-breweries—in this country are investing and growing and reporting that they are planning for growth. This is an important area for driving growth, but it is in danger of having too small a voice, because we perhaps tend to focus on bigger industries with more organised lobbies. We as Members of Parliament are, I hope, the organised lobby for our small enterprises—our pubs, small breweries and micro-breweries. I hope that that is what we have done today by painting a picture of lots of individual enterprises throughout the country that, in their own way, are making important contributions to economic growth in their area.

In 2012, the number of breweries in Britain has exceeded 1,000 for the first time since the great war, which is extraordinary, but that success story cannot continue unless there are pubs in which to serve the ale. I therefore hope that the Minister will consider the picture that has been painted and use this opportunity to say that this is the very moment to back this important engine of economic growth in Britain.

[Several hon. Members]

rose—

Infrastructure (Financial Assistance) Bill

Jane Ellison Excerpts

Monday 17th September 2012 Commons Chamber

[Rachel Reeves]

I thank my hon. Friend for that intervention. Of course he is agreeing with something that the Business Secretary said, which is that the real problem in the economy is a lack of demand. Supply-side measures will not do very much to help with that. When the Chief Secretary was asked in intervention what projects would be supported by this Bill he could name not one. That is the problem; this is a guarantee scheme, but we do not know what it guarantees. This is a project to help infrastructure investment, but we hear no announcement about which infrastructure investments will go ahead that would not have done previously. No wonder businesses and Members are sceptical and no wonder we are still in recession, if this is as good as the Government can get.

We will not oppose the Bill, but nor will we allow the Government to use the scheme as a substitute for the real plan that the economy and businesses so desperately need. Instead of devoting themselves to the task of getting our economy moving again, the Government have put before us an infrastructure investment guarantee that guarantees no infrastructure investment—fast-track legislation that has had the effect of getting the scheme stuck in the slow lane. The Government are preoccupied with distracting us from their fundamental failure and inaction, but people’s patience is wearing thin. We have had enough of initiatives and announcements: no more excuses, no more evasions—the Government need to get serious.

Two years ago, we warned that the Government’s economic plan would choke off recovery, shatter business confidence and add to borrowing, and that it would make it harder, not easier, to balance our books and pay our way in the world. A year ago, we called on the Government to bring forward infrastructure investment; we called for a bank bonus tax to fund the construction of 25,000 new affordable homes and to deliver a programme of youth jobs. If the Government had taken our advice then, just think how much progress we could have made by now.

[Jane Ellison (Battersea) (Con)]

Before the hon. Lady reaches the end of her speech, perhaps she will comment on this point. If all the things that have not been done are so bad, why did Madame Christine Lagarde say that she shivered to think what would have happened had the Government not taken the action they did?

[Rachel Reeves]

Olivier Blanchard and the International Monetary Fund have been saying for a year that if growth does not materialise the Government should think again. How much longer do we need to be in recession? How much longer must we have rising youth unemployment and rising long-term unemployment before the Government act? The IMF now forecasts that the economy will shrink this year and will barely grow at all next year. That is evidence that the Government need to rethink their strategy, and it is a shame that they have not heeded the advice of the IMF.

Oral Answers to Questions

Jane Ellison Excerpts

Tuesday 26th June 2012 Commons Chamber

[Jane Ellison (Battersea) (Con)]

My constituents warmly welcome the Government’s support for the Northern line extension in the Vauxhall/Nine Elms development area. Is that not a good example of exactly the kind of infrastructure project that the Government could support to help unlock economic growth?

[Danny Alexander]

It is precisely such an example of the sort of infrastructure that this country needs and the sort of project from which the economy of London and elsewhere will benefit if we can bring the investment forward and make things happen more quickly. As I said, we are looking for ideas about doing just that.

Oral Answers to Questions

Jane Ellison Excerpts

Tuesday 24th April 2012 Commons Chamber

[Mr Gauke]

It is worth pointing out that this £3 billion figure that the shadow Chancellor and others recite suggests an entirely static process. Nobody believes that a 50p rate has no behavioural impact whatever, but that is the Labour party’s ridiculous position. That was not its position when in government, and it is not a position that any credible economist would support.

[Jane Ellison (Battersea) (Con)]

T1. If he will make a statement on his departmental responsibilities.

[The Chancellor of the Exchequer (Mr George Osborne)]

The core purpose of the Treasury is to ensure the stability of the economy, promote growth and employment, reform banking and manage the public finances so that Britain lives within her means.

[Jane Ellison]

What steps is my right hon. Friend taking to support successful small businesses that wish to take advantage of export opportunities?

[Mr Osborne]

We want to get small businesses exporting more, and UK small businesses have traditionally not exported as much as, for example, continental European small businesses. That is why UK Trade & Investment, under Lord Green, has set the specific ambition of doubling the number of small businesses helped by the Government. We want small businesses to be ambitious and look to overseas markets.

Amendment of the Law

Jane Ellison Excerpts

Wednesday 21st March 2012 Commons Chamber

[Stephen Mosley (City of Chester) (Con)]

I welcome the measures that my right hon. Friend the Chancellor announced in his Budget—measures that continue to lay the foundations of an economy underpinned by enterprise, opportunity and wealth creation. The European and global economies have had a torrid time over the past two years, but the Chancellor has been unwavering in his commitment to bringing our spending and our deficit under control. Unless we do that, we have no chance of creating the future economic success that we all desire. I am delighted that the Chancellor is taking strategic decisions on how our economy should evolve and compete in future.

[Jane Ellison (Battersea) (Con)]

The right hon. Member for Southampton, Itchen (Mr Denham) completely ignored all the announcements about corporate tax rates. I wonder whether my hon. Friend will cover those rates, and the way that they incentivise business growth.

[Stephen Mosley]

Corporate tax rates, of course, are one incredibly important area, but there are many others. In my speech, I shall concentrate on some of the issues that the right hon. Member for Southampton, Itchen (Mr Denham) talked about, to do with investment.

Many people rightly ask, “How will we, in Britain, earn our living in the global marketplace of the future?” Like the Chancellor, I believe that there are sectors in which the UK can take a global lead, in which we have the ability to excel, and that have the potential to generate growth for future generations. The one that I will concentrate on is the digital economy.

The UK’s information technology and telecoms industry makes a gross value added contribution to the British economy of some £81 billion a year. That is around 9% of the total economy—it is a very similar figure to that for the financial services industry. Around one in 20 members of the work force—1.5 million people—are employed in IT and telecoms. There are around 100,000 unfilled job vacancies being advertised, and it is estimated that more than 500,000 new IT and telecoms professionals will be needed over the next five years. By exploiting the full potential of the technology industry, we could boost the UK economy by an additional £50 billion over the next seven years.

The Chancellor’s speech gave extremely encouraging signs that investment in information and communications technology is set to continue, but more needs to be done if we are to harness our real potential to make our country a global leader in the digital economy. We have a world-class base from which to grow further, but we require proactive engagement from the Government if we are to speed up growth and increase the economic potential of ICT businesses. We must be much more vigorous in promoting the industry to stimulate wider and sustained economic growth.

Autumn Statement

Jane Ellison Excerpts

Tuesday 29th November 2011 Commons Chamber

[Mr Osborne]

The Government’s capital spending plans are higher than those that the Labour party put forward in March 2010, which the Dromey family enthusiastically endorsed and tried to persuade the country to vote for. It is striking that, with the hon. Gentleman’s background, he has not mentioned the strikes, which will do huge damage to our economy and jobs. Why do not he and his colleagues condemn them and make sure that our country is working?

[Jane Ellison (Battersea) (Con)]

I warmly welcome the Chancellor’s announcements on infrastructure. In particular, there is a hugely warm welcome for the announcement of Government backing for the Northern line extension to Battersea, which is key to unlocking many new jobs and homes in the Nine Elms/Vauxhall/Battersea development area. Does he agree that it is also important for the existing communities in that area, many of which are among the most disadvantaged in my constituency? It is good news for them, too.

[Mr Osborne]

I had the opportunity yesterday, with my hon. Friend and the Mayor of London, to visit one of the development sites between Nine Elms and Battersea. It is fantastic to see that project going ahead and I hope that the support and commitment we are giving to help with the borrowing required to fund the Northern line extension will help to create 25,000 jobs in that area of London.