(6 years, 6 months ago)
Commons ChamberI have expressed particular concerns about those people in England who earn under £26,000 a year and will pay more tax than they will in Scotland and about whether the Government feel it is fair—[Interruption.] I am sorry, Mr Speaker, but I am being shouted at from across the Chamber. Those people at the bottom of the pile who earn under £26,000 a year will pay more tax in England than they would in Scotland. That is not fair, because those people—
No thanks.
It is not fair because those are the people who most need Government support, especially given the changes to tax credits and the negative impacts we have seen, with disabled people losing £30 a week. This is a major issue for the most vulnerable people. The Conservatives shout about the fact that tax rates for those who earn a reasonable income will be slightly higher in Scotland than in England, but it is clear that they support a different system that does not involve as much fairness as the system that we are trying to support in Scotland.
On the process of Budget scrutiny and the general process of scrutiny of Finance Bills, I have previously expressed vociferously my concerns about the fact that Finance Bill Committees do not take evidence. It would be much better if they did, and if they did, I would like to see them take evidence from organisations such as the Women’s Budget Group that can talk about the gender disparity in some of the tax decisions that are made. But I honestly do not think that that is enough. It is not enough to have scrutiny after the fact. Despite the Government moving to one fiscal event in the year, which is a change that I welcome, there is not the level of consultation that there could be before tax measures are suggested and put in place—before the Chancellor stands up and reveals his Budget.
I agree with the hon. Gentleman’s point. I made the point earlier about regional differences and the impact of Brexit. It is important not only in relation to the GDP reduction that areas might see because they will not be able to trade as easily with EU countries, but in respect of the money that came from the EU and was used for things like infrastructure projects. It is important that the Government counter those reductions.
When the Chancellor stands up to give his spring statement, which we hope will be light on tax changes—that is what tax experts and the business community are asking for—and when he delivers his Budget, it is incredibly important that he has done as much consultation as possible beforehand. He should not only speak to business organisations and Conservative MPs, as I know he does, but open the net wider and consult in advance on any tax measures that he wishes to put in place. He should also take on board new clause 9, which would ensure that an impact analysis is carried out afterwards.
Can the hon. Lady explain the consultation that the Scottish Government undertook before they introduced higher taxes for Scottish taxpayers? Many of my constituents do not feel that it was fair and many businesses have expressed concerns. Despite the calls for consultation, the Scottish Government’s consultation before the introduction of their own plans for higher tax was not reflected in any changes.
Before the vote on the Scottish Government’s budget, they produced a paper on the rationale behind their proposed changes. They consulted each of the parties in the Scottish Parliament and asked them all to put forward their tax plans, so that they could be analysed. The consultation was first put forward in October or November—I am not entirely sure—and the vote is taking place today. That left a significant length of time between the production of the consultation documents and the first discussions and the actual vote in Parliament.
Here in Westminster, we have the Budget debate and then the votes on the Ways and Means resolutions. We have votes on proposals that are being put in place from that day. That is very different from the situation in the Scottish Parliament, where a length of time is allowed for consultation because the draft budget is produced. All the parties in the Scottish Parliament are welcome to produce an Opposition budget and they are welcome to take that to the Parliament to be voted on. Some of them have chosen to do that and some have not. I suggest that those that have not chosen to do that might be struggling to balance the books, or they might have just decided that ours is clearly the best option.
I do not wish to take up any more time. The call for equality assessments and for more transparency and information would be helpful not only for the Opposition, who scrutinise the Budget, but for the Ministers who take decisions. They would take better decisions if they could see all the impacts, particularly on people with protected characteristics.
(6 years, 6 months ago)
Commons ChamberI pay tribute to the hon. Member for Stoke-on-Trent North (Ruth Smeeth) and my hon. Friend the Member for Hazel Grove (Mr Wragg) for bringing this highly topical issue before Parliament.
The announcement in December from Royal Bank of Scotland-NatWest that 62 branches would be shut across Scotland affected my constituency more than most, and I wish to concentrate my remarks on that. Six branches are set to close in Berwickshire, Roxburgh and Selkirk in the latest in a string of closures in the Scottish borders.
We all acknowledge that banking habits are changing and that branches are less well used than they used to be. However, what banks are failing to appreciate is that for those who do use them, they remain more vital than ever. I share Members’ concern that these closures will affect vulnerable customers as well as cash-handling businesses and community groups that need a local branch at which to deposit money.
The impact of bank closures is particularly acute in rural areas, for a number of reasons. First, alternative services are already stretched. The post office in Hawick, for example, is very busy and will struggle to take on extra banking services. Secondly, connectivity in rural areas remains a big challenge. East Berwickshire has some of the worst internet speeds in the whole of the United Kingdom, with more than a third of people unable to receive a decent connection. How can those people be expected to rely on internet banking as an alternative?
High streets in the Scottish borders are struggling, and Jedburgh and Selkirk in my constituency will be particularly badly hit. Selkirk is currently going through a significant amount of town centre regeneration, only for the bank to now announce that it is going to leave. Another issue with one of the branch closures in the borders is disabled access. Duns is set to lose its RBS branch, and although the Bank of Scotland branch remains, it is only open three days a week, and both the branch and its ATM are not wheelchair-accessible.
Many people in the borders think that these closures have been decided by people with little experience of living outside the metropolitan areas of the United Kingdom. Someone has looked at a map without any knowledge of the local area and drawn red crosses all over it. There has been a complete lack of consultation. RBS simply announced these closures and told its customers to like it or lump it. There is a feeling in my area of the Scottish borders that enough is enough.
Opposition to the latest round of closures is unprecedented, and I have been contacted by a huge number of constituents. Tomorrow I will hold three public meetings on branch closures, spread across my constituency, such is the level of concern surrounding this news.
Does the hon. Gentleman agree that the announcement by RBS this week that it will keep some branches in Scotland open temporarily—I think one in his constituency, but none in my constituency—does not go nearly far enough and still leaves rural and more deprived communities at risk of losing their services?
The hon. Lady makes an important point. I will come on to the bank’s announcement this week shortly, but I share her concern that it goes nowhere near far enough to address the concerns that many people have raised.
I accept the Government’s position that this is a commercial decision for the bank. The public shares are not managed by the Treasury; they are controlled by an arm’s length company, UK Financial Investments, whose role is to manage the public investment, not to manage the bank. It would set a dangerous precedent if there were direct Government interference in a decision such as this.
Having said that, I do not believe that the arrangement with UKFI would have prevented the Government from telling the bank that it had got this decision wrong. The announcement this week from RBS, with its minimal concessions, is simply not good enough. A handful of branches will remain open for just a few more months, and in the Scottish borders, only Melrose will be given a stay of execution. No one really expects these branches to avoid closure ultimately.
I was therefore very surprised to read the comments of the right hon. Member for Ross, Skye and Lochaber (Ian Blackford), praising the bank for this announcement. I was equally surprised to read his comments at the weekend, when he seemed to be taking credit for what he anticipated would be good news from the Royal Bank of Scotland.
Does the hon. Gentleman agree that while the deal done this week, with 10 banks being temporarily reprieved, is not good enough, the UK Government should be exerting their influence—their much greater influence—as the major shareholder on behalf of the taxpayer?
I am grateful to the hon. Lady for her point, but if she had listened to what I said a few moments ago, she would have heard me say that while the Government own the shares, we do not have direct control over the day-to-day running of the company. Equally, I believe—I have argued this strongly to the Minister—that the Government should apply moral pressure on the bank to think again on these decisions.
The announcement by the bank does not go far enough, and although the bank has made some changes—minimal changes—it has not fully addressed the concerns that my constituents have raised. I was surprised by the comments of the leader of the Scottish National party at Westminster, who seemed to be trying to take the credit for what he anticipated would be good news from the bank. I was surprised because the bank made it clear that the changes to the plans it had previously announced were in response to concerns raised by politicians from all political parties, and because in the end the news was far from good. A cynic might think this had more to do with the right hon. Gentleman positioning himself ahead of the SNP deputy leadership election than trying to do what was best for his constituents or, indeed, the branch network across Scotland.
The truth is that the campaign against the RBS branch closures has been a truly cross-party effort—led, I must say, by the Scottish Affairs Committee at Westminster. I am pleased to see two other members of the Committee on the Opposition Benches today, and I know that they feel just as passionately as I do about the issue of branch closures. All Members who are losing branches in their constituencies share a desire to make the banks think again.
For the SNP, the loss of 52 branches across Scotland is a price worth paying to give 10 branches a very short temporary stay of execution. This is bad for communities in the borders, bad for rural communities across Scotland and bad for the elderly and the vulnerable. It is a bad deal to avoid further public scrutiny, made without consulting local communities.
I am delighted to participate in this debate, although I wish it were not necessary. I thank the hon. Member for Stoke-on-Trent North (Ruth Smeeth) for securing the debate and for her comprehensive opening speech.
The speeches we have heard today show there are common concerns across the United Kingdom about the stampede of the banks out of our communities. We are all very concerned. We have had the announcement of yet more bank closures by RBS, with a further 62 branches closing in Scotland. Ten have been reprieved for the moment, following negotiations with the Scottish National party leadership. I agree that that does not go far enough. It certainly does not—
In a moment.
It certainly does not do anything for my constituency, but I am not mean-spirited enough not to recognise when progress is made. I know the hon. Member for Berwickshire, Roxburgh and Selkirk (John Lamont) would rather cut his own head off than give the SNP any credit for anything, but I really think he should be more gracious in this case. He said that this was as a result of concerns expressed by all parties, but the fact is that around the negotiation table there was the SNP and RBS—nobody else. So I really do think that he might perhaps put that in his pipe and smoke it.
I will not give way. You’ve put the boot in and the boot’s been put back, so we will leave it at that.
I would be disturbed by the fact that the UK Government, despite being the major shareholder in RBS, has not lifted a finger—[Interruption.] The hon. Gentleman chunters from a sedentary position, driven by his hatred of the SNP and his lack of concern for communities who have been offered a reprieve. It really is quite sad, Madam Deputy Speaker. It is concerning that the UK Government, despite the taxpayer being the major shareholder in RBS, have not lifted a single finger to encourage or force RBS to pause its closure programme and carry out impact assessments or consultations with the communities affected.
Order. I think the hon. Lady has said she is not giving way. She has a short amount of time in which to speak.
Thank you, Madam Deputy Speaker. It is disappointing that the UK Government have not lifted a single finger on behalf of the taxpayer to do anything to protect the communities affected by the bank closures. I am disturbed that the UK Government, as the major shareholder, were not consulted about the closures either. That is deeply unfortunate and raises a lot of questions.
I am pleased—other Members may not be—for the communities whose banks have been reprieved, but it does nothing for my constituents in North Ayrshire and Arran, who still face the prospect of losing three banks in Saltcoats, Kilbirnie and Kilwinning. Vowing not to close the last bank in town is something that RBS has now sought to disassociate itself from. That sounded good at the time to the PR companies, but it has not bothered to continue—
No, I will not. The hon. Gentleman is being extremely rude. As I said, he is driven not by concern about banking communities but by his hatred of the SNP. It really is rather pathetic.
It sounded good to RBS when it said that it would not close the last bank in town, but that has long been abandoned. As a result, Kilwinning—a town of around 16,000 people—now faces the prospect of losing its last bank. We have seen this week that RBS is not deaf to the uproar that the closures have given rise to. Its public image lies in tatters, but it has opened the door an inch to reprieve some branches. I and SNP activists, who have been out every weekend, on Saturdays and Sundays, since after Christmas collecting parliamentary petition signatures to save our banks—having already collected thousands of signatures—now propose to run at the door that has been slightly opened and kick it open wide to save our branches. We will not give up in our quest to save our banks. We bailed out the banks and it is time that they lived up to their moral obligations to our communities.
If the closures go ahead in my constituency, it will bring the number of towns with no bank to six. The towns of Dalry, Stevenston, West Kilbride, Ardrossan and Beith no longer have a bank and, shortly it seems, RBS intends to add Kilwinning to the list. I honestly do not think that any other constituency in the United Kingdom has been so adversely and cruelly hit. Indeed, the banks are stampeding out of Ayrshire at an alarming and staggering rate.
People have talked today about post offices picking up the slack, but the range of services that banks provide are not always available in post offices. Having a corner at the back of a Spar supermarket is no compensation for customers, who will get no privacy and not get the same level of services. Of course, it was only 10 short years ago that our post offices were under attack and stampeding out of our towns.
I cannot overstate the sense of anger and betrayal felt by these and similarly affected communities across the United Kingdom. From a bank that was bailed out by the taxpayer to secure its very survival, due to its own incompetence—a bank that is still 73% owned by the taxpayer—this is a bitter pill to swallow. That pill is made all the more bitter by the fact that, last year, that very bank paid out £16 million in bonuses. The culture of excessive bonuses lives on, while the customer and taxpayer continue to suffer.
The UK Government retain all legislative and regulatory powers in respect of financial services, so they do indeed have the authority to call a halt—a pause—to the devastating round of closures while banks, stakeholders and the UK and Scottish Governments consider how best to take account of the obligation to banking customers and our communities. Whatever the banks may say, they do have an obligation to our communities—a service obligation, a financial obligation and, I would argue, a moral obligation.
Let us be clear: the bank closures mean that the affected communities no longer have access to day-to-day essential banking services. They mean that my constituents in Kilbirnie must undertake a round trip of 18.8 miles to access their new so-called “local” bank, with most relying on public transport to do so. They mean that RBS customers in Saltcoats are being directed to the next RBS, which is a round trip of 12.8 miles, and Kilwinning customers are being asked to undertake a round trip of 6.8 miles to visit their new “local” branch.
All of that is before we even get to the impact on local businesses, which are increasingly finding themselves without access to night safes. If local businesses cannot bank their takings at the end of the business day, they must incur an extra insurance charge for keeping the cash overnight, with all the security implications of that. These small businesses are the backbone of our communities and our local economy. Make no mistake: to leave a town with no bank is financial and social exclusion.
I have been told by RBS that the branches closed in Kilwinning, Saltcoats and Kilbirnie in my constituency will be replaced by mobile banks. That is not what constituents want. The mobile banks are not reliable, are not disability-compliant and are a poor substitute for the presence of a bank in our towns.
We will continue to fight these closures. We will continue to collect our parliamentary petition signatures because RBS must understand that the people of North Ayrshire and Arran, the people of Kilwinning, Saltcoats and Kilbirnie, will not sit quietly and take the poor treatment that has been meted out to them. I urge the Minister to use all the means at his disposal, as the majority shareholder, on behalf of us, the taxpayer, to sort this matter out and order the banks to pause, consult communities and do the right thing. This matter will not go away.
(6 years, 7 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
My hon. Friend makes a very powerful case. Like the Royal Bank of Scotland at the beginning, the UK Government have underestimated the sense of anger within our rural communities. We must keep up the pressure on the UK Government to act, and act swiftly.
The hon. Gentleman is making a very powerful case, much of which I agree with. In my constituency, I am losing six bank branches. I suspect the anger in my communities is equal to what he is experiencing in Argyll and Bute. Does he share my concerns that the bank is putting too much additional pressure on the post office network, which I do not think has the capacity to deal with that extra custom? Post Office Ltd is saying one thing about what the network can deliver, and post office operators are saying something very different.
The hon. Gentleman is absolutely right. The idea that the post office network in our rural communities can somehow pick up the slack on this is nonsensical. It is an absolute fantasy and it will not work.
Without any consultation whatever, RBS has decided that people in Campbeltown who wish to continue banking with it must now endure a 175-mile round trip to Oban. Alternatively, they could drive an hour to Claonaig, take a 30-minute ferry to Lochranza on Arran and drive over the hills for 40 minutes to bank at the branch in Brodick. RBS customers on the Isle of Bute, in order to remain RBS customers, will be expected to take a ferry to the mainland, get off at Wemyss Bay and drive or get a bus to Largs. No matter which way one looks at it, a visit to the nearest branch of RBS for customers in Campbeltown and Bute will be a day out of their lives.
Worse still is the position of the people of Inveraray. The closure of the RBS branch in Inveraray, despite previous assurances that RBS would not close the last bank in a town, means that there will be absolutely no banking facilities in that town at all. It borders on the unbelievable that a town such as Inveraray, with a booming tourist industry and three good-size hotels, and boasting numerous cafés, bars, restaurants and high-quality clothing outlets—a town that has an estate and a castle that is a magnet for tourists—will be left without a single bank. The Inveraray-based author and journalist, Marian Pallister, who launched her own online petition against the closures, was spot on when she said:
“The Inveraray branch is used by businesses, individuals and charities throughout Mid Argyll. Online banking is not a valid alternative in many rural areas and now businesses and charities will have to make a 75-mile round trip to the nearest RBS branch. Inveraray is a tourist hub and while this closure disadvantages local people, it is a death sentence for the local tourist industry”.
(6 years, 7 months ago)
Commons ChamberI am grateful for the opportunity to speak on an issue that has deeply affected so many small and medium-sized businesses throughout the United Kingdom. The Royal Bank of Scotland should be one of the jewels in the UK’s crown: a principled yet profitable business carrying the great name of Scotland and doing business in every corner of the globe. Perhaps it was something that we could be proud of before 2007, but actions of the bank that have been uncovered since then have lost it almost all its credibility.
The Global Restructuring Group is responsible for much of its now bruised brand image. It was responsible for stripping businesses which were deemed to be perfectly viable. Those are not my words, but the words of the Tomlinson report, which stated:
“GRG artificially distresses otherwise viable businesses. Through such actions, GRG placed businesses on a journey towards administration, receivership and liquidation.”
One of GRG’s tactics was to appoint its own valuers to appraise assets put forward by companies against loans, deliberately undervaluing the assets and then putting them into GRG even if those companies were not behind with their payments. My hon. Friend the Member for Dumfries and Galloway (Mr Jack) described very well the challenges that businesses and individuals have faced in that regard. Anyone can see that that should be absent from business practices in the United Kingdom.
Of course, RBS denies that it made any money from such practices, but we must remember that the senior management of the bank created the circumstances in which it became so desperate to liquidise many of its investments. It must also be pointed out that the Financial Conduct Authority found that GRG’s actions failed to comply with the bank’s own standards. It is only right for the FCA to hold the bank to account and to fight on behalf of customers—business or otherwise.
Unfortunately, such practices are not confined to customers of Royal Bank of Scotland. As many Members may be aware, UK Acorn Finance Ltd is held responsible by many in the agricultural industry for forcing farmers into bankruptcy or eviction. One example is that of Kevin and Angela Holt who farmed in the constituency of my hon. Friend the Member for Moray (Douglas Ross). They are, in their words, victims of a fraudulent loan scheme that led to the loss of their farm. I am sure that there are countless small businesses that see their circumstances reflected in today’s debate.
It is also important to remember the problems that financial difficulties can lead to. It not only leaves a hole in the bank balance, but leads to mental health problems and can cause irreparable damage to families, especially in small businesses. The businesses affected are not faceless corporations, but, in many instances, small family companies supporting local employment and the local economy. I am very grateful to the Government for what they have done in continuing to fight hard to strengthen the financial sector, but more needs to be done.
As I have said, RBS is no stranger to bad news. Bankers’ bonuses, branch closures and bail-outs highlight but a few cases. One needs only to ask some of my constituents for their thoughts on the recent announcements to understand the consequences of its actions on local people and the injustice that they feel. However, the acts of the Global Restructuring Group are perhaps its most intemperate over the past decade, since the beginning of the great recession. It is our duty in this House to stand up for those who have been crushed by the immoral acts of this corporation, which, as we all know, is now owned by the taxpayers of this country.
(6 years, 9 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
I congratulate my hon. Friend the Member for Dudley South (Mike Wood) on securing this important debate. I am delighted to be speaking, and to stand up for the beer and pub sector, which supports about 800 jobs in my constituency. It gives me the opportunity to promote some of the great produce that can be found in the borders. There are certainly some excellent examples, such as Tempest Brewing Company, from Tweedbank, which recently cleaned up at the Scottish Beer Awards, picking up six awards; and multi-award-winning Born in the Borders Brewery, near Jedburgh, which has recently expanded its bottling plant, creating new jobs in my constituency.
As well as award-winning brewers, there are some fantastic pubs in the borders. They make our towns lively, and in villages they are often a focal point for the community. At a time when banks and post offices are closing, often the only community facility left in a village or community is the pub. We cannot kid ourselves that taxation of the beer and pub sector is not necessary. Excessive alcohol consumption is bad for our health, and often causes antisocial behaviour, so it is right that businesses contribute. A certain level of taxation also reduces consumption, so targeting the problem areas, such as drinks with higher alcohol content, is appropriate. However, the burden on the sector is clearly having an impact, and tax now makes up a third of the price of a pub pint. The beer duty is one of the highest in Europe and I support calls for it to be reconsidered.
We must recognise the positive impact that pubs and brewers have on jobs and the communities that they serve. We must also recognise that the problem of excessive drinking is not the sole responsibility of pubs; it not even primarily a problem caused by the sector. Pubs encourage sociable and responsible drinking in a regulated environment where the purpose is to socialise and enjoy a drink, rather than just to get drunk. By making beer unaffordable in pubs we are only promoting a shift in consumption to the off-trade market, which would not be a good thing in terms of reducing alcohol consumption.
On the issue of business rates relief, my hon. Friend the Member for St Albans (Mrs Main) mentioned the 12.5% cap scheme in Scotland. That has not necessarily been welcomed there. Certainly, in my constituency a number of pubs and hotels face a huge one-year increase. It is capped at 12.5% but, given what went before, and what they were previously paying, many pubs have not welcomed it.
I want finally to make a point that, although not directly related to taxation, is relevant to the challenges that pubs face—the reduction in the drink-driving limit. In Scotland it was reduced a few years ago. I supported the move and do not advocate changing the law. However, there has been a fairly profound impact on pubs— particularly rural pubs. In fact, a third of rural pubs in Scotland have reported a drop in sales of more than 10% since the limit was reduced. I do not think that enough was done to support the sector when the change was made, and I hope that lessons can be learned, particularly if there is a debate as to whether the law should change in England and Wales.
(6 years, 10 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
I am delighted to take part in today’s debate, and I commend my hon. Friend the Member for Stirling (Stephen Kerr) on initiating it. Devolution should have been a good thing for Scotland, bringing power and decision-making closer to the people. Holyrood has evolved to be one of the most powerful devolved Parliaments in the world, and I for one welcome that process, but it does mean that the Scottish Government must face the reality of spending within their means. Every time the SNP objects to a reduction in public spending, they have a simple solution: increase taxes to pay for what it is promising.
Devolution does not and should not stop at Holyrood. What we have seen, particularly over the past 10 years, is an increasingly powerful Scottish Parliament refusing to hand over any powers to local authorities. In fact, the reverse has often been the case. The current SNP Administration in Holyrood have been one of the most centralising Governments in recent years. Most people in Scotland do not feel that decision making has been brought any closer to them.
Will my hon. Friend give way?
No, I have got only a short amount of time left. In many cases, decision making has moved from Westminster to Holyrood. Scotland has become one of the most centralised countries in the western world. The vast majority of economic decision-making powers are kept by the Scottish Government, and councils have been relegated to little more than service providers. Council oversight of policing has been all but destroyed by the creation of Police Scotland. Local sheriff courts have been shut in Duns and Peebles, as have local police station counters. The Scottish Government meddle in hundreds of planning decisions each year, overturning council decisions half the time.
My final point is this: the Scottish Government constantly say that they want more devolution, but it is interesting to see what they do with that devolution when they get it. The answer is nothing. The Scottish Government have had the power to raise or lower income tax, but have chosen not to use that power. They have the power to compensate women who have been affected by the changes to pension age, but they choose to do nothing apart from complain about it. Most recently, after years of demanding control over welfare, what did the SNP do when it actually got those powers? It asked the Department for Work and Pensions to remain in charge of payments for three more years because they were not ready for the responsibility. Time and time again, the SNP is failing Scotland because it fails to use the powers it has available.
(6 years, 11 months ago)
Commons ChamberThis second Finance Bill of the year brings forward measures that the House did not have time for before the general election. Without that election, I would not be standing here today to represent the people of Berwickshire, Roxburgh and Selkirk and I therefore very much welcome the opportunity to contribute to this debate. I am also delighted to speak so soon after my colleague, my hon. Friend the Member for Moray (Douglas Ross). I know Douglas from our time together in the Scottish Parliament, where he was an excellent Member, and I am confident that he will be a first-class representative in this place for the people of Moray. I congratulate him on his excellent maiden speech.
As a whole, this is a Bill that prioritises fairer taxation and economic stability—two policies that have served my constituency in the Scottish borders well. Indeed, the number claiming out-of-work benefits in Berwickshire, Roxburgh and Selkirk has fallen by more than 50% in the past five years and remains below the Scottish and UK average. Around 200 new businesses have been created in my constituency since 2013. That means more people in work and paying tax, and 200 more businesses making contributions to the public purse and providing local jobs. This has been achieved by encouraging growth, not through more and more public spending. Our deficit is now a third of what it was, and we remain on course to have a budget surplus within the next few years. This approach can be contrasted with that of Opposition Members, who stand for more spending, more borrowing and more debt. Labour Members stood on a manifesto that was completely uncosted and fiscally irresponsible. Their spending plans have a £58 billion black hole and their planned tax rises will drive away businesses and reduce investment.
The Conservative approach in successive Finance Acts also stands in stark contrast to that of Scottish National party Members, who want to drag Scotland out of the United Kingdom. This would leave Scotland with a £13 billion black hole in its public finances. While the UK’s deficit is now down to 3% of GDP, an independent Scotland would have a deficit worse than those of Spain or Greece, and one that would saddle our children, our grandchildren and probably our great-grandchildren with significant debt. Despite trying for years to get one, I have yet to hear a straight answer from an SNP Member about how they will plug that gap. That will need to be done with spending cuts, tax rises, higher borrowing or a lot of all three. To put that figure in context, £13 billion is more than Scotland spends each year on our health service. I ask: where is this money going to come from? Luckily, the vast majority of Scots seem to agree that that is not a price worth paying, which is why support for separation continues to fall.
My consideration of the Bill has given me the opportunity to reflect on my general views about fiscal matters. It will come as little surprise to Members that as a Conservative, my instinct is for taxation to be kept as low as possible. Doing so encourages growth and innovation, and it encourages the best and the brightest to move to the United Kingdom to work and do business. That view is all the more important for me because I represent the Scottish borders, so my constituents bear the brunt of different approaches to taxation in our United Kingdom. It is too easy for a business, or a higher-tax earner, to relocate south of the border if Scotland ceases to be an attractive place to do business, and I fear that that is increasingly becoming the case.
Taxation powers in Scotland are shared between the United Kingdom and the Scottish Parliament, after a considerable transfer of power to Holyrood, but the approach of the two Governments could not be more different. The Conservative Government here are backing Scottish business with lower corporation tax rates, investment in broadband and shortly, via the borderlands growth deal, significant investment in the south of Scotland. Personal taxation has been reduced by increasing the personal threshold, benefiting more than 2.5 million Scots. In contrast, the SNP has made Scotland the highest-tax part of this United Kingdom. Middle earners pay more income tax and more council tax per higher-banded property, and the large business supplement is twice the rate applicable in England. It is little wonder that Scotland has only narrowly avoided falling back into recession at a time when the UK economy is growing at a healthy rate.
I turn to the legislation that we are considering, in which there is much to welcome. My constituents will be happy with the provisions designed to crack down on aggressive tax measures, particularly the changes in part 4 that will prevent individuals from using artificial schemes to avoid paying the tax they owe. Those measures include new penalties for those who design or enable tax avoidance schemes that are later defeated by HMRC, building on the £160 billion in additional tax revenues that it has secured since 2010.
I think the time is right to abolish permanent non-dom status. It is only fair that those who have lived here for a considerable time pay tax in the same way as UK residents do. The idea that a person can move and live here for 40 years, or even be born here, and avoid certain taxes is a ridiculous way of exploiting our tax regime, and I welcome the steps to change that. I am also pleased with the introduction of a simplified corporation tax deduction for companies that make contributions to grassroots sports. For recognised sport governing bodies, the deduction will be unlimited. I know of a number of small and medium-sized businesses in the Scottish borders that will be encouraged by the measure to contribute to local sports teams.
As a Member representing a population with an above-average number of pensioners, I am encouraged by the introduction in clause 3 of a new income tax exemption to cover the first £500 of pensions advice provided to an employee. That reflects the fact that pensioners have been given greater freedom by the Conservative Government to spend their pension fund, but that with that extra freedom some might benefit from greater advice. The provision will make seeking that advice more affordable and encourage employers to offer it to their staff.
There is also a range of measures designed to make our tax system fairer for all taxpayers. Clauses 5, 7 and 8 tighten the rules over termination payments, the recycling of pension savings and incomes paid through dividends. Governments need to be responsible to all taxpayers, so it is correct to make changes that might be unpopular with the few for the benefit of the many. The measures to progress the Making Tax Digital initiative in clauses 60 to 62 are common-sense in this day and age. I am generally supportive of the Making Tax Digital programme, as well as the decision by the UK Government to slow down the pace of implementing these changes.
I am pleased that the Bill will put in place exemptions for businesses that cannot meet the requirements due to their geographical location, and I hope that the regulations will be drafted widely on this point. In my own area of the Scottish Borders, too many businesses suffer from unreliable internet connections, and I would not want them to be penalised because of local infrastructure issues. By closing the tax gap further and making taxation fairer, we will boost the nation’s tax revenues—not by hiking up taxes like the Opposition parties want us to, but simply by ensuring that people pay what they ought and are due to pay.
I conclude by welcoming the Bill, and I look forward to supporting further measures to make the economy of Scotland, and of all the United Kingdom, stronger and more prosperous.