House of Lords (Hereditary Peers) Bill

Debate between John Glen and Gareth Snell

2nd reading
Tuesday 15th October 2024 Commons Chamber

[John Glen]

No, I will make some progress, as there is not much time.

As with many areas of policy, and as witnessed in these first 100 days, the Bill exposes that, despite all those months sat on the Opposition Benches, the Government do not have a coherent plan with the next steps set out.

[Gareth Snell]

Will the shadow Minister give way?

[John Glen]

I will in a moment. I said that I would, so I will. As Lord Adonis has reminded us,

“there is no consensus on reform.”

The Government did have, as they kept telling us when it was the other way round, 14 years to deliver. They had 14 years to come up with that plan. Now they have an enormous majority, and they have just set out one step.

[Gareth Snell]

I thank the shadow Minister for giving way. He has diligently listened to all the debate this afternoon, and I thank him for that. He talks about a package of reforms. The last reform that his party brought forward in 2014 was a very small reform, with the expulsion of people for non-attendance, the right to resign or retire and the expulsion of those who committed a crime. Since then, 187 Members have retired or resigned and 16 have been expelled for non-attendance. If that was perfectly acceptable as a stand-alone reform without consideration of the consequential impacts, why is this Bill any different?

[John Glen]

I am sorry, but it is the hon. Gentleman’s Government who are now in charge of the agenda before Parliament. It is for them to be accountable for it. I am so challenged by the poverty of ambition that exists on the Government Benches. We are given to believe that they are planning a new wave of peers, and the Prime Minister’s former chief of staff has reportedly been overheard saying that she is top of the list. The Prime Minister was previously reported as trying to make our political system better, because it had previously been undermined by “lackeys and donors” appointed to the other place. Sadly, it seems that as soon as he got into Downing Street, he discovered the Government’s own lackeys and donors were already waiting for him. I think that reflects this Government’s wider approach and attitude to constitutional reform and our institutions.

2019 Loan Charge

Debate between John Glen and Gareth Snell

Tuesday 20th November 2018 Westminster Hall

[John Glen]

In the course of my speech, I will address that point. I am happy for the hon. Gentleman to come back to me later if he feels that I have not done so.

To be clear, I am the Economic Secretary; the Financial Secretary wanted to be here but he is in the main Chamber for the Finance Bill, so I am here in his place.

I acknowledge the early-day motion tabled by Members. It has attracted 103 signatures, and I also acknowledge the concern throughout the House on this matter. The concerns expressed are for people who have used a disguised remuneration scheme, who expect to have outstanding loans in April 2019, and who will be subject to the charge. I recognise that the Government need to be clear about why we legislated for this charge, which received Royal Assent following a full debate during the Finance Bill process in 2016-17. I will outline the steps that the Government have taken to help those individuals who may be affected.

The Government believe that it is not fair to ordinary taxpayers, who pay their tax on time and in full, to allow people who have used tax avoidance schemes to get away with it. Disguised remuneration tax avoidance schemes are contrived arrangements that use loans, often paid through offshore trusts, to avoid paying income tax and national insurance contributions. The schemes may have involved provision of a loan with no intention whatever to repay it. I spoke to the Financial Secretary this morning, while preparing for the debate, and he said, “Earnings are earnings, and a loan is a loan,” and that is what the issue boils down to.

[Gareth Snell]

I understand the Minister’s point, but before he progresses with his speech, will he clarify whether he accepts what many Members have asked this afternoon-that those who undertook the scheme did so in good faith, and therefore that the people ultimately in trouble for this system are those who perpetrated it, not those who signed up to it?

[John Glen]

I am happy to concede that for the 50,000 indivi-duals affected, there are obviously responsibilities for those who promoted this. It is absolutely the case that HMRC is pursuing those individuals. They often promoted the scheme to large numbers of individuals. Five cases are before the courts—that seems a small number, but each one covers a large number of individuals—and there has been a judgment in one, with the other four cases still moving through the courts. It is not right to say that HMRC is not engaged with those who promoted the scheme.

[Gareth Snell]

Others set it up.

[John Glen]

Others did, I appreciate that—that is fair. I take on board the sentiment of the Chamber with respect to ensuring that HMRC is engaged with those who promoted the scheme, as well as the other individuals.