Oral Answers to Questions

Janet Daby Excerpts

Tuesday 29th January 2019 Commons Chamber

[The Financial Secretary to the Treasury (Mel Stride)]

I thank my hon. Friend for that question. The creative industries are vital to our country. This Government have provided an array of very important tax reliefs to that sector—they were valued at £850 million in 2017-18. We will continue to support the sector.

[Janet Daby (Lewisham East) (Lab)]

T5.   Constituents such as mine are facing large retrospective bills because of the loan charge. What plans does HMRC have to litigate against those who have disguised remuneration arrangements since 2016?

[Mel Stride]

As the hon. Lady may know, the way the loan charge works is that those who have been involved in this form of tax avoidance have until April to settle their affairs, in which case no penalty will be applied at all. We have also said that those earning £50,000 or less will automatically qualify for a five-year minimum repayment term. My message, as always in these circumstances, is that those who are involved in these schemes should come forward, speak to HMRC and sensibly sort out their arrangements.

European Union (Withdrawal) Act

Janet Daby Excerpts

Thursday 6th December 2018 Commons Chamber

[John McDonnell]

I watched the hon. Lady’s contribution to the previous debate; it was interesting how her words coincided with those of Government Members. The use of the words “best endeavours”, “ambitions” and “sought for” gave such uncertainty that it was impossible for the general public and others to understand the direction in which the Government are going in the long term. I concur with the hon. Lady’s view.

I must press on. It is not just Labour Members who are pointing out issues with the finance sector; Members from all parties are doing so, including some on the Government Benches. That view is backed up by economists of many viewpoints in their assessment of the Prime Minister’s deal—including, it seems, the Government’s own. The official analysis produced last week was far short of what was promised, as we said at the time. It took as its starting point the Chequers proposals, which have long been discarded. In doing so, it failed to live up to the standards of transparency that we should expect when engaging in critical decisions such as this.

Even in what they did publish, the Government admitted last week—as the Chancellor has again today, I believe—that their deal would make Britain worse off. In the closest scenario to the possible deal, we could see GDP nearly 4% lower as a result of the Government’s approach to Brexit. To put that in context, this year that would be around £83 billion. In the long term, the damage is likely to be even greater. Worryingly, the Chancellor described £83 billion being wiped off our economy as a “very small economic impact”. Maybe there will be many “little extras” to follow in future.

[Janet Daby (Lewisham East) (Lab)]

Does my right hon. Friend agree that the public’s view is that the economic impact of the deal is too high a price to pay? How does my right hon. Friend view that?

[John McDonnell]

What has happened is clear: the deal has not convinced the Government side and certainly has not convinced the people. It has not convinced a majority in the House so far.

The Government analysis estimated that the impact of trade barriers alone could mean an average drop in wages of 3%—£800 a year, in today’s terms. The regional growth impact is worst in our exporting regions such as the north-east and the west midlands. Other organisations have come to similar conclusions. The Bank of England said that GDP would be almost 4% lower by the end of 2023. The National Institute of Economic and Social Research put the damage at £100 billion in real terms.

--- Later in debate ---

[Janet Daby (Lewisham East) (Lab)]

I stand today to discuss the economic aspects of this deal, but the fact is that too much is still uncertain. We know, however, that the Government’s own economic analysis illustrates that the deal will make our country poorer, and with GDP falling by around 3.9%—£100 billion in real terms—every region of the UK will be worse off. I note with enormous disappointment that the Prime Minister has dropped achieving frictionless trade as a priority, and it seems there will be barriers to trading goods. For the service sector, the political declaration states that market access will be limited, and in areas such as financial services, it offers no firm mechanism to protect the industry.

Like many in this Chamber, I was devastated when I realised that more areas had voted to leave the EU, but it soon became apparent that no one really knew what it meant and how it would affect all regions and nations of the UK. In that respect, the referendum lacked clarity as the precise effects of leaving have only recently become clear.

There is much speculation about why our nation voted the way it did and what that meant, and like my hon. Friend the Member for Sheffield South East (Mr Betts), I think that we must consider why people voted in such a way. Lost in the division and debate of the past two years is any analysis of why people voted the way they did and why it varied and was so different in many parts of our country. It is clear, however, that poverty and an ongoing lack of opportunity played a part.

A report by the Joseph Rowntree Foundation revealed that poverty levels are high and affect 14 million people, including 4.1 million children—a shocking statistic. The recession and long and hard-hitting austerity have seen many people made redundant. People have been forced to take on zero-hours contracts, and some may have two or three jobs but still live in poverty. Food and fuel prices have risen, and wages have fallen behind the standard cost of living. There has been a sharp spike in private rental accommodation, in which people often live in unbearable conditions. Property in certain parts of the country has become unattainable, and social housing waiting lists are forever growing longer. People, especially in London, are being placed in B&Bs and temporary accommodation, often too far away when it comes to taking their children to school, going to their place of work or caring for their loved ones.

There has been an increase in the threat of terrorism and the prison population, and the ability to attain higher education has moved further away from some people and their families. The rise in food bank provision makes people feel like they have failed in life, when really it is the Government who need to be held to account.

The leave campaign focused on a contentious message of blame culture: “Let’s blame others—immigrants.” They used them as a scapegoat when the nation’s sense of dissatisfaction should have lain at the Government’s doorstep. It is successive Governments who are failing to create jobs, to correct the benefits system, to provide education bursaries, to regulate rents in the private sector and to build more social homes. They are failing to root out racism and discrimination in our society, to promote gender equality by giving pensions to WASPI women, to invest more in education, including higher education, and to invest in our public services.

Many of my constituents are proud to be called Europeans: 70% in the borough of Lewisham voted to remain. A deal is an agreement, but this deal has not been ratified by our country. What is the only way to regain a mandate on a clear way forward? I have faith in Members of this House, but the gravity of this decision is too much for us alone.

If the Prime Minister is confident with her proposed negotiations, she should be confident enough to bring them before the electorate. In the circumstances, it is only right that the people are given some say over what happens next.

This is not about frustrating Brexit; it is about allowing people to make an informed decision across the country about a known quantity. Before the Prime Minister sets her Brexit boat sailing, she needs to consider the weather and the course of the journey. It will be too late to turn back if the weather gets tough. I could not vote for anything that will make our country poorer.

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.