2019 Loan Charge

Janet Daby Excerpts

Tuesday 20th November 2018 Westminster Hall

[Janet Daby (Lewisham East) (Lab)]

Thank you for allowing me to speak in this debate, Mr Walker.

In 2000, the Government introduced legislation called IR35, which sought to class many freelancers as employees. It was designed to target “disguised employment” and the Government wanted to close a loophole that allowed companies to employ people without collecting NICs or paying other associated taxes. Unfortunately, “disguised employment” was not well defined. When people were engaged on very different terms to permanent employees, it was not clear whether they were subject to IR35. In that grey area, third-party scheme providers began to offer a service whereby contractors became employees of a third-party company, which was then engaged by the agency or client company. Remuneration was paid in the form of loans, which were often made by an offshore third party.

Those arrangements were marketed as HMRC-compliant and seemed to offer the certainty that many were looking for. The Government now claim that the arrangements did not work and, although they were within the law, were not in tune with what Parliament intended. That has led to a series of measures designed to recover the funds, which were not originally deemed taxable, in spite of the fact that the people affected legitimately completed tax returns, paid their dues and disclosed the arrangements to HMRC.

Many within the schemes have yet to be informed of the amount that they are due to pay, including my constituent Nick, who was involved in one of them. To say that Nick is worried about that is an understatement. I have met him, and he said that he is

“facing personal ruin, most likely bankruptcy with the loss of the family home”.

He feels that that will affect him and his family. He continued:

“While I have recently moved out of financial services…bankruptcy would make me ineligible to work for any financial services company again therefore severely limiting my potential employers”

and employment. To say that causes a great deal of stress is an understatement. Although he is grateful to have the support of his wife and family, there are days when he feels hopelessly overwhelmed by that looming over him.

Given the vast sums of money involved, and the various reasons and backgrounds behind people becoming involved in such schemes, we need a sense of the role of the companies who provided the contracts. They clearly played a role. I would also like to know from the Minister whether the time-to-pay arrangements will provide the people affected with any kind of practical support.

Summer Adjournment

Janet Daby Excerpts

Tuesday 24th July 2018 Commons Chamber

[Janet Daby (Lewisham East) (Lab)]

Thank you, Mr Speaker, for the chance to speak in this debate. I am both humbled and very proud to be here. I thank my constituents in Lewisham East for giving me this opportunity, as well as my family and my wonderful husband for their patience and understanding over the past few months—and continuing patience, probably. [Laughter.]

I will respect tradition by thanking two of my predecessors, Bridget Prentice and Heidi Alexander. The unwavering support and encouragement that I have had from these phenomenal women exemplifies the adage, “Lift as you climb.” Bridget was MP for Lewisham East for 18 years, from 1992 to 2010. She is still a resident, well respected and well known for her community spirit, straight talking and humour. I thank Bridget for her belief in me.

Of course, I wish to pay tribute to my predecessor, Heidi Alexander. As hon. Members know, she was an incredibly hard-working, approachable and dedicated advocate in this place. She was key to the community campaign that saved Lewisham Hospital A&E services, and as shadow Secretary of State for Health, she was vocal in the junior doctors’ dispute. She was passionate and outspoken about the need for us to stay in the single market—a view shared by many people in Lewisham, where 70% of us voted to remain. We in Lewisham East will not tolerate a hard Brexit. I thank Heidi for her dedication as a public servant, and I am sure hon. Members will join me in wishing her well in her new role as London’s Deputy Mayor for Transport. No doubt, I will soon be in contact with her about improvements to the Lewisham transport system.

As for me, when I was a child and even a young adult, I never imagined that I would become a local councillor, and certainly not an MP; it was quite possibly the furthest thing from my mind. Having grown up with my mum and her endless capacity for compassion and kindness—she gave us children a strong sense of social justice—I was keenly aware from an early age of the impact of prejudice and discrimination on people around me. I was aware that while many resilient Black, Asian and minority ethnic people did challenge those who sought to oppress them, there were others who learned how to cope with discrimination rather than to complain; they learned to suffer rather than to speak out. The Windrush scandal is the latest and most shocking cruelty inflicted upon us. I am proud, as a daughter of the Windrush generation and as a Labour MP, that one of the voices raised against that legislation was that of my party leader.

Although I grew up in a single parent family, my father was never far away, and I clearly remember my Uncle Clifton, my late Uncle Lass and my Uncle Sam excitedly discussing politics during family visits. As a child, it was a world I knew little about, but it intrigued me and I did my best to engage with their conversations. I intend to ensure my contributions here are as enthusiastic and as fearless—and rather better informed than I was as a child.

I am so honoured to represent Lewisham East, my home of 22 years, because it is the friendliest, most energetic and multicultural community anyone could hope for. We have it all: from grand mansions to compact urban flats, from leafy expanses to concrete labyrinths. We have the best street parties in London and, indeed, perhaps the country—hon. Members can prove me wrong on that if they wish to! We have a strong community spirit, and our valued civic organisations, such as Eco Communities, Pre-school Learning Alliance, Ubuntu and Youth First, demonstrate this. We are also fortunate to have the Inter-Faith Walk for Peace and the Peace of Cake movement, which work to make Lewisham East safer and to enhance cohesion.

That said, years of austerity have meant that many people live hand to mouth, and having set up a food project in 2013 as a local councillor, with the local community, I know this only too well. I know someone who has three part-time jobs. He works himself to the bone, but still he has to visit the foodbank so he can feed himself and his family. What he and all our constituents are owed, at the very least, is the real living wage as defined by the Living Wage Foundation. Instead, our constituents got the much lower national living wage, based on political calculations.

The quality of jobs available is a serious issue. As a Unison trade unionist and former public-sector worker, I believe in fair pay and in proper terms and conditions. I understand that decisions are being made on whether to abolish the widely used and highly exploitative employment contracts that allow for agency workers to be underpaid for their labour. We need to do the right thing and abolish them, and I applaud the Communication Workers Union’s campaign on this issue. Low pay and insecure jobs mean that many of my constituents are spiralling into debt, and they cannot hope to pay their rocketing private rents. The people of Lewisham East are crying out for social housing, and they need it now if we are to stop the number of families being forced out of the area by the housing crisis.

As for our young people, I am deeply troubled by the multiple stops and stop-and-searches that innocent young men, especially black men, are subjected to. This can have a brutal impact on their mental health and wellbeing, often something that is not considered. Our young people do not just need hope for the future; they need tangible change. I will do what I can to address the stop-and-search issue.

I am saddened and outraged that in 2018 some young women in Lewisham East, but not just in Lewisham East, will skip school because their families cannot afford sanitary products. Across the UK, it is estimated that 137,000 girls missed school last year because of this type of poverty. I absolutely support moves for free universal access to sanitary products.

I want to use the privilege of having a voice in this Chamber to help to reduce poverty, improve health, raise educational outcomes and clean up the toxic air that blights parts of Lewisham East. Some people might see this as optimistic for one MP and her constituents, but as the anthropologist Margaret Mead said:

“Never doubt that a small group of thoughtful, committed citizens can change the world. Indeed, it is the only thing that ever has.”

On this, I believe that when we come up against a mountain to overcome, we need others to help us make the climb, as we cannot do this alone.

Mr Speaker, at times it has felt overwhelming to come into this great establishment, but I have been met with such hospitality by you, parliamentarians on both sides and the superb staff in both Houses—it is greatly appreciated.

[Mr Speaker]

Thank you.