Oral Answers to Questions

John Lamont Excerpts

Monday 20th May 2019 Commons Chamber

[Penny Mordaunt]

I am happy to give the hon. Gentleman that reassurance. I will go into more detail on the matter when I respond to the urgent question later, but that is the Government’s policy. The hon. Gentleman is wrong about our training with Saudi Arabia, just as the leader of the Labour party has been wrong on the Falklands, on Sierra Leone, on Syria, on Kosovo, on Russia and on Crimea, and wrong about Hamas, Hezbollah, al-Qaeda and the IRA. That is why decisions about national security should remain with a Conservative Government.

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

2. How many payments the Government have made to armed forces personnel based in Scotland to mitigate the Scottish rate of income tax.

[The Parliamentary Under-Secretary of State for Defence (Mr Tobias Ellwood)]

Thanks to the surprising decision by the Scottish Government, our valiant armed forces are obliged to pay a higher rate of income tax than people in other parts of the country. As I hope the whole House would agree, the MOD sees armed forces personnel as a national asset, so we have introduced mitigation payments for eligible personnel to offset the unfair burden placed on our valiant soldiers, sailors and air personnel.

--- Later in debate ---

[Mr Speaker]

The Minister was very enthusiastic to make his point, at any rate.

[John Lamont]

I am grateful to the Minister for his response and, indeed, for the Government’s policy of ensuring that our brave armed forces men and women are not left out of pocket by the SNP Scottish Government’s bad decision to put up Scottish taxes—it has become known as the “nat tax” in Scotland—but I believe the damage has already been done. I have received anecdotal evidence from the spouses of armed forces men and women who are now not coming to Scotland because they fear paying higher taxes in Scotland if their spouses are serving there.

[Mr Ellwood]

My hon. Friend is absolutely right that this issue affects not just those in uniform for whom we have responsibility, costing the MOD £4 million a year, but their spouses, partners and so forth. We are pleased to say that around three quarters of those partners, spouses and so forth are in employment—that is on a par with the civilian sector—but that means that they, too, face that tax burden if they move to Scotland.