Budget Resolutions

John Lamont Excerpts

1st reading: House of Commons
Thursday 1st November 2018 Commons Chamber

[John Lamont (Berwickshire, Roxburgh and Selkirk) (Con)]

I am delighted to support this Budget, which delivers for my constituents in the Scottish borders and all people across Scotland.

Scotland is lucky enough to have two Governments, but their economic records could not be so far apart. Others have spoken very well about what the UK Government are delivering for Scotland, and I want to focus my remarks on how the Scottish Government are failing to deliver for Scotland. The Scottish Government are completely failing to use their vast array of powers to grow the economy north of the border. The hon. Member for Airdrie and Shotts (Neil Gray) tried to put a glossy shine on the Scottish Government’s economic record, but I am going to set out some facts to the House.

Last year, the Scottish economy grew at less than three quarters of the rate of the United Kingdom’s economy. By 2022, the Scottish economy will be over £18 billion smaller as a result of the low growth under the SNP Scottish Government, and Scotland has had the slowest business growth of any country or region in the United Kingdom since 2016. Shamefully, there are now fewer businesses in my constituency than there were in 2015, and the blame for that lies squarely at the door of the nationalist Government in Edinburgh, with their anti-business policies and obsession with raising taxes, as well as the uncertainty that exists in every part of Scotland over the threat of another independence referendum, which Nicola Sturgeon, the First Minister of Scotland, refuses to take off the table. Scotland now has the highest business rates in Europe, and everyone earning over £26,000 is paying more tax than they would in other parts of the United Kingdom.

I understand that SNP Members are planning to vote against the Budget today, so let me remind the people of Scotland just what SNP Members are voting against. They are voting against a tax cut for over 2.4 million Scots; against a pay rise for 117,000 hard-working Scots on the national living wage; against freezing fuel duty for Scottish motorists and businesses; against a £200 million boost to the whisky industry secured by Scottish Conservative MPs; and against a commitment to growth deals, including the borderlands growth deal. SNP Members like to pretend they are standing up for Scotland. The Scottish Government like to pretend they are standing up for Scotland. The only people standing up for Scotland are the Scottish Conservatives in this House.

Finance (No. 3) Bill

John Lamont Excerpts

Committee: 2nd sitting: House of Commons
Tuesday 20th November 2018 Commons Chamber

[Patricia Gibson]

Again, my hon. Friend points to the lack of accountability and the hotchpotch—the rushed contracts put together by PFI, which benefited somebody, but did not benefit our local authorities or our children, and they do not benefit the patients in hospitals.

There is no better example of the need for new clauses 14 and 15 than North Ayrshire Council in my constituency. This Labour-run council had a PFI process that was severely flawed and was uncovered by local journalist Campbell Martin. Some have even insisted that criminal activity was involved, since while the council appeared to have two bids for construction projects—therefore seeming to provide the genuine competition required by EU procurement rules—in fact, the evidence suggested that one of those bids was from a subsidiary of the other company submitting a bid, so there was actually no competition at all. The Labour council was made aware of this before the contracts were awarded, but awarded them regardless. In the opinion of one ex-detective, the evidence showed

“criminality from start to finish.”

Another former officer stated that a common law crime of forgery and uttering should have been pursued. Right there we see the need for more transparency. I for one would like to see more transparency on the tax arrangements of such companies, as this is very much in the interests of the UK’s public finances.

All this information relates to a public-private contract now costing taxpayers over £1 million every month in North Ayrshire. Add to that the schools that are crumbling across cities such as Edinburgh, and we have real questions about these PFI firms. For projects of a capital value of £4 billion in Scotland, we will repay £22 billion, with our schools spending 8% of their budgets on paying off these Labour PFI debts. Can we really allow any lack of transparency around the tax affairs of such companies?

It is absolutely essential that there is more transparency around how UK public finances finance public sector projects. The tax affairs of these companies and their wider financial affairs need to be open to scrutiny because they build or have built our public assets. I urge the Committee to support new clauses 14 and 15.

[John Lamont (Berwickshire, Roxburgh and Selkirk) (Con)]

I want to discuss the clauses in the Bill that seek to tackle tax avoidance and evasion. Combined, these measures will seek to raise billions of pounds for our public services by further clamping down on this serious matter. My hon. Friend the Member for Walsall North (Eddie Hughes) identified clearly that these measures will raise much needed extra money for our public services.

Rather than raising taxes for businesses, this Government are focusing on making sure that tax liabilities are paid. They have a strong track record of clamping down on those seeking to avoid paying their fair share. This Budget builds on that track record, with no fewer than 21 measures to protect revenue and bring in more tax by tackling fraud, avoidance and unfair outcomes.

On a related point, I very much support the introduction of a new digital services tax, which is not technically a measure designed to tackle tax avoidance, but which will nevertheless make our tax system more fair and fit for purpose in the digital age. The Chancellor is right to try to find a global solution, but in the meantime this measure is a step in the right direction that will make the tax system fairer for small businesses in high streets in my constituency in the Scottish borders that are struggling to compete with the likes of online giants such as Amazon. Of course, in Scotland, these businesses are also struggling with the high tax regime imposed on them by the SNP Scottish Government in Holyrood.

Other clauses in the Bill, such as those to ensure that HMRC is a preferred creditor in business insolvencies, that more tax is paid to the public purse and that we crack down on insurance companies routing services through offshore territories, are certainly welcome.

[Jim McMahon]

Does the hon. Gentleman accept, though, that the trade-off with the digital sales tax and the relief being offered to some premises in town centres just is not enough? Take, for instance, the former Textiles Direct unit in my local shopping centre, which has been empty for some time, but has a rateable value of £500 per square metre. Compare that to the Amazon warehouse near Manchester airport that pays just £44 per square metre. How can it be right that the gap is so large?

[John Lamont]

Clearly, I cannot speak about the circumstances in the hon. Gentleman’s constituency, but these measures are clearly a step in the right direction. I know the number of businesses in my constituency that contact me. They are competing with online businesses and other digital platforms to provide the same or similar types of services. It is just not fair when businesses are able to run very profitably, making a big turnover from a garage or attic, when at the same time the same service or shop on the high street is paying significantly higher business rates. Of course, in Scotland, we have the additional challenge of the additional taxes that businesses are having to pay through the Scottish Government’s high-tax agenda.