Worboys Case and the Parole Board
Debate between Julian Lewis and David Gauke(6 years, 7 months ago)
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Dr Lewis
Thank you, Mr Speaker. Does not the Worboys case illustrate the fact that there is a culture of consideration for rapists and murderers that puts the public gravely at risk? Will the Secretary of State be investigating the case of the two murderers who killed two people in two separate incidents in their own homes and who have just been convicted of the horrific rape, torture, throttling and murder by burning in a car while she was still alive of a young Vietnamese woman—not to mention the imminent release of another criminally insane individual who is being groomed for release in his guise as a woman, having previously been convicted of stabbing to death a young woman in her own home more than 66 times?
Mr Gauke
I suspect that a number of Members will have read about the case to which my right hon. Friend refers, which was covered this morning. Clearly it raises a number of issues. My focus has been on the particular circumstances of the Worboys case and the fact that there was a lack of probing of the information that should have been taken into account in making a risk assessment. These risk assessments are difficult, and sometimes they will be got wrong, but it is our responsibility to ensure that the processes are robust.
Parole Board and Victim Support
Debate between Julian Lewis and David Gauke(6 years, 10 months ago)
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Mr Gauke
The hon. Lady raises a fair challenge. It is important that public confidence is maintained. It is also right, though, that the Parole Board, as an independent body, makes the decisions; I do not detect a consensus in the House that this matter should be returned to the discretion of politicians. However, the Parole Board clearly needs to be very mindful of public perception. It is, I know, very mindful of the risks that could be created on somebody being released. That is the test that the Parole Board must meet in making these decisions.
Dr Julian Lewis (New Forest East) (Con)
When a minimum tariff is imposed, can it be challenged on grounds of undue leniency; and given that the tariff is a minimum, why does the sole test applied by the Parole Board appear to be simply whether the criminal still poses a risk to others? What has happened to the concept that the punishment should fit the crime?
Mr Gauke
Of course, the IPP cases are essentially historic in the sense that those sentences no longer apply; but while approximately 3,000 IPP prisoners remain in jail, it is a question of testing whether there is a risk to the public once the tariff has been met, as my right hon. Friend sets out. Of course, a different system applies to those who do not fall within the IPP test.
Euro Area
Debate between Julian Lewis and David Gauke(9 years, 4 months ago)
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The Financial Secretary to the Treasury (Mr David Gauke)
It is a great pleasure to serve under your chairmanship, Sir David. I congratulate my right hon. Friend the Member for Wokingham (John Redwood) on securing this debate, and I thank all participants. It has been enlightening. I particularly congratulate my hon. Friend the Member for Stone (Sir William Cash) on his election—I am surprised that anyone would dare challenge him—and am delighted that he has been returned in place as Chairman of the European Scrutiny Committee.
As previous speakers have said, the UK’s relationship with the euro area and further euro area integration raise important challenges. That is particularly the case in the context of the situation in Greece. By not joining the euro, the UK retained the economic flexibility to adjust to shocks. This Government cannot be clearer: we are committed to keeping the pound and staying out of the euro area. Under protocol 15 of the treaties, the UK has a permanent opt-out from the euro area, so we are
“under no obligation to adopt the euro”.
That said, it seems likely that the euro area—I stress “the euro area”—will need further integration to stabilise its economy. That is the premise of the recent five presidents report. Our position is simple: the EU must be flexible enough to meet the interests of both those inside the euro area and those outside it. The single currency is not for everybody, but the single market is, so it must work for all of us. My right hon. Friend the Chancellor has made it clear that, as the euro area integrates, we will need to reconcile the integrity of the EU as a collection of 28 member states with the integration of the euro area as a currency union of 19 economies. Our interests as a euro-out must be protected.
The immediate outlook for the euro area is improving. Its first-quarter growth was 0.4%, the fastest rate of quarterly growth since 2011. Nevertheless, the outlook for growth remains sluggish, which should be of concern to us all. The lesson from our own experience in the United Kingdom is that what is needed to embed recovery is a mutually reinforcing mix of active monetary policy to stimulate demand, maintain price stability and support the flow of credit to the economy, clear commitments to medium-term fiscal discipline that provide a firm anchor for market confidence and a focus on growth-enhancing structural reforms to rebalance and strengthen the economy. We therefore welcome the European Central Bank’s recent actions to stimulate the economy and tackle the potentially damaging threat of deflation. However, as the latest forecasts show, ECB action alone is not sufficient to change materially the euro area’s growth trajectory. Structural reforms are crucial to support the effectiveness of the ECB’s action.
The Chancellor has long made clear his view that there is a remorseless logic meaning that the euro area, like any currency area, needs closer economic and fiscal integration to secure its future. The recently published five presidents report is part of an ongoing process to identify next steps to better governance in the euro area.
Mr Gauke
The logic of the position—this point was made by numerous right hon. and hon. Members before the formation of the euro—is that if there is a currency union, certain other things flow from it. Indeed, we are seeing the consequences of that. In a way, it is the background to the five presidents report. It is part of an ongoing process to identify the next steps to better governance in the euro area. There is a clear appetite for reform demonstrated by the process, which echoes the conversations that the Prime Minister and Chancellor have had in their bilateral discussions. The Government have submitted two written contributions to the five presidents’ process. We note the report’s proposals and have set out its content and implications in an explanatory memorandum. Therefore the Government do not currently plan to issue a further formal response. However, although the report’s focus is on the euro area, many issues it covers affect the interests of all member states. The UK will therefore remain fully engaged in discussions in this area.
So far, other member states have expressed a range of views on the report’s proposals. It is worth nothing that these reviews have been mixed. As I said, it is in our interests that the euro is a successful, strong currency area, so we do not want to stand in the way of the euro area resolving its difficulties. However, we will not let integration of the euro area jeopardise the integrity of the single market or in any way disadvantage the UK. The Government are pushing for further reform to improve the single market, focusing on the digital single market; further liberalisation of sector-specific services; and better regulation for small and medium-sized enterprises.
In return for supporting the euro area’s efforts to stabilise its economy, we want a settlement between the UK and the euro area that protects the single market, that is stable and fair and that lasts. This is in the interests of everyone—it is the basis for stable and sustainable governance of a reformed and prosperous EU—and is one of the UK’s important objectives in its renegotiation with the EU.
It has been 40 years since the British people last had a say on our EU membership. The organisation has changed vastly since then and it is time that we addressed this matter. The British public are clear that they are not happy with the status quo. My right hon. Friend the Prime Minister is determined to address those concerns. He has already talked about four areas where he wants change: sovereignty, competitiveness, immigration and fairness. For example, ever-closer union—a theme that runs through the five presidents report, to some extent—may be right for others, but it is not right for Britain, and change should include increasing economic competitiveness to create jobs and growth for hard-working families, and reforming welfare to reduce the incentives that have led to mass immigration from Europe. Those things are important to us. These reforms will improve fairness, which cuts to the heart of today’s debate: protecting Britain’s interests outside the euro. They will also improve the EU’s effectiveness as a whole. We want a dynamic, competitive, outward-focused Europe, delivering prosperity and security for the benefit of every country in the EU, with the UK playing its role.
Saville Products Ltd and HMRC
Debate between Julian Lewis and David Gauke(11 years, 4 months ago)
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The Exchequer Secretary to the Treasury (Mr David Gauke)
It is a great pleasure to serve under your chairmanship again, Mr Crausby. I am grateful to have the opportunity to respond to the speech made by my hon. Friend the Member for Altrincham and Sale West (Mr Brady) who, as ever, represented his constituents with great eloquence and made a good case on their behalf.
I should state that in the case raised by my hon. Friend, Her Majesty’s Revenue and Customs—or the Inland Revenue, which was the relevant organisation for much of the time—clearly did not carry out its investigation appropriately and did not complete its review process to the standards expected. I am aware, both from his comments today and from the previous meeting to which he referred, of the distress and worry that his constituents have suffered as a consequence, and I offer my sincere sympathies and apologies for their experiences during that period.
I feel that it would be of most use to address two issues in the course of the debate. First, I shall set out the procedures in place to ensure that all taxpayers, such as my hon. Friend’s constituents, can receive a fair and independent review of any grievance. Secondly, I will address the issues that he has specifically raised involving Mr and Mrs Nelson.
On the first point, I should start by stating that employees of HMRC clearly must understand fully that compliance checks can be stressful to taxpayers. To be fair to HMRC, it sets high standards for professionalism and customer service, and deals with the vast majority of cases fairly and efficiently. With more than 500,000 compliance checks undertaken annually, there are likely to be some cases when claimants feel that those standards have not been met. In such circumstances, it is absolutely right that taxpayers, or their agents, can submit a complaint about the action of HMRC.
HMRC has a well-established two-tier complaints process for such situations and makes a concerted effort to resolve all complaints at the first opportunity. That involves a fully trained and experienced case handler who undertakes a full review of all aspects of the complaint. If the customer remains unhappy following that process, they can ask for the complaint to be looked at again. This second-tier—or tier 2—review is carried out by a different case handler to help to provide an independent perspective on the case. Again, it is worth noting that the vast majority of cases are resolved over the first two tiers. In the tax year 2011-12, HMRC successfully resolved 98% of complaints over the two tiers.
In cases when the taxpayer remains dissatisfied with the response, such as in the case involving Mr and Mrs Nelson, it is right that they can ask the adjudicator or the Parliamentary and Health Service Ombudsman to look into their complaint. The adjudicator is a fair and unbiased referee, and the service provided is free to the taxpayer, provided that the complaint falls within the adjudicator’s remit.
The adjudicator’s role is to investigate and help to resolve complaints from individuals and businesses that remain unhappy about how HMRC, the Valuation Office Agency or the Insolvency Service have handled their affairs, after they have exhausted the relevant organisation’s complaints handling procedure. That can include complaints about mistakes, delays, poor advice, inappropriate staff behaviour or the use of discretion.
As my hon. Friend is aware, a customer can also ask their Member of Parliament to refer the complaint to the Parliamentary and Health Service Ombudsman. The ombudsman is independent of the Government and investigates complaints impartially, specifically on allegations of complicity or malpractice. Investigations by the ombudsman are conducted in private, and the relevant legislation restricts her ability to provide detailed information about specific investigations.
I can confirm that if the ombudsman decides that a Department or an arm’s length body has made a mistake, she will work with it to correct that error. That could involve acknowledging the mistake, issuing an apology and paying compensation. In all cases, it should involve ensuring that the same mistake does not happen again.
That leads me to the second part of my response: my hon. Friend’s interest in the specific case of his constituents. As I mentioned at the outset, it is clear to me, having taken a personal interest in the case, that significant mistakes were made by HMRC and its predecessor organisation. The original investigation was not handled well, and that was further compounded by the failure of HMRC complaints handlers to acknowledge that.
In the case of all complaints that are referred to either the adjudicator or the ombudsman and that are upheld, HMRC undertakes a thorough internal review and, as would be expected, steps are taken to ensure that lessons are learned by not just the individuals involved, but the entire body, in an effort to ensure that mistakes are not repeated elsewhere. One area in which HMRC has learned lessons from such complaints and improved its processes is alternative dispute resolution. It uses the skills of an independent HMRC facilitator to work with customers, agents and caseworkers to try to reach an agreement and resolve disputes.
HMRC has held a successful pilot and is now rolling out that approach more widely, and I hope that that provides some reassurance that action has been taken, following the ombudsman’s report to improve performance in this area. However, I have seen from correspondence that my hon. Friend’s constituents raise concerns about the “agenda” of the ombudsman in failing to uphold entirely the complaint made, and suggest that if I accept the conclusions reached by her, I am condoning “dishonesty, deceit and collusion”. Although I have every sympathy with my hon. Friend’s constituents, and I understand the frustrations that they have experienced, I strongly contest that suggestion. There can be no doubt about the independence of the ombudsman from HMRC—or indeed any Government Department—and I therefore believe her judgment in this matter to be sound.
My hon. Friend’s constituents have been critical of the level of payment awarded, as it is significantly below the amount they believe would represent sufficient recompense for the expense incurred and anxiety caused by the compliance check. Compensation has, however, been paid for the identifiable and evidenced expense incurred as a result of the extended investigation and, additionally, a compensation payment has been made for the unnecessary suffering caused by HMRC’s handling of the matter, in accordance with the instructions of the ombudsman. As my hon. Friend rightly points out, the payment is much higher than is normally the case in such circumstances. However, the ombudsman did not find sufficient evidence of economic loss and accordingly did not direct HMRC to pay any compensation in that regard.
I reiterate my apologies and sympathies to my hon. Friend’s constituents for the undoubted worry and distress caused to them as a result of failings at HMRC or the Inland Revenue, as it was for much of that time. It is always regrettable when avoidable errors such as those made during this investigation result in the kind of personal hardship that no amount of financial compensation can eradicate.
Dr Julian Lewis (New Forest East) (Con)
I have been listening to this debate with great interest and I must say that Mr and Mrs Nelson have inherited the fighting spirit of the great admiral who shared their surname. I have a similar case in which HMRC is pursuing a medium-sized firm for about £1 million in notional lost tax for goods that were bound for export but were stolen. The firm was an innocent party and the tax is notional, but HMRC is threatening the livelihoods of 40 employees and will not let the matter go. When the Minister says that such cases are always unfortunate and that we should put up our hands and say sorry, will he take a sympathetic view and have a word with the organisation to say that sometimes it is better to prevent the wrong from taking place in the first place, rather than having to apologise for it afterwards?
Mr Gauke
I am grateful for my hon. Friend’s intervention. It is not possible for me to comment on individual cases, although I know that he has taken a close interest in that matter for some time. Perhaps we can have a quiet word about it afterwards. It is not possible for me, as a Minister, to intervene in operational matters, but it is right that HMRC has the correct procedures in place.
To return to the case raised by my hon. Friend the Member for Altrincham and Sale West, it is perhaps worth reflecting on the fact that it originated in 2001. The UK’s tax authority has undergone radical changes since then, not least with the formation of HMRC itself. While that does not in any way excuse the errors that were made, the organisation has made significant improvements in the past 12 years. Furthermore, let me reaffirm my faith in the work of the parliamentary ombudsman—in the context of HMRC and beyond. I have trust in her impartiality and independence. Although I appreciate that this is not the answer that my hon. Friend is looking for, and I have no doubt that he will continue to represent the case of Mr and Mrs Nelson strongly, the ombudsman has reached her conclusion and it should be respected.
PAYE Contributions
Debate between Julian Lewis and David Gauke(14 years, 2 months ago)
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Mr Gauke
The hon. Gentleman makes a good point. To be fair, the NPS system brings the information together, but unfortunately, that has highlighted more difficult cases. In fact, as we move forward with the NPS system and—potentially—further reforms, HMRC should have more accurate information and so be able accurately to assess the level of tax due.
Dr Julian Lewis (New Forest East) (Con)
I am tempted to ask whether the person who designed the computer system for HMRC is the same as the person who designed the computer system for claiming MPs’ expenses, but I shall resist, and instead ask the Minister this: why has he alighted on the period of only three years for people to make payments? Is it not the case that people on very low incomes may need longer if they are hit with particularly large bills?
Mr Gauke
The period of three years is one in which we have confidence that HMRC will be able to address the matter administratively. Beyond that, certain technical matters would need to be thought through. However, we are confident that HMRC is capable of addressing the matter over three years.
Oral Answers to Questions
Debate between Julian Lewis and David Gauke(14 years, 5 months ago)
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Dr Julian Lewis (New Forest East) (Con)
7. What steps his Department is taking in respect of payment of compensation to Equitable Life policyholders.
The Exchequer Secretary to the Treasury (Mr David Gauke)
The coalition Government have pledged to make fair and transparent payment to Equitable Life policyholders, through an independently designed payment scheme, for their relative loss as a result of regulatory failure. The Queen’s Speech announced the Government’s intention to introduce a Bill in the first Session of Parliament to enable payments to be made to Equitable Life policyholders. On the same day, the Government also announced that an independent commission would be established to design the payment scheme. These steps are a strong sign of the Government’s commitment to deliver on their pledge.
Dr Lewis
More than 60 of my constituents in New Forest East, and indeed even one of my own relatives, will be delighted to know that the Government intend to implement the recommendations of the ombudsman. Can he tell me when this is going to happen—and can he guarantee that the Independent Parliamentary Standards Authority will not be put in charge of making the payments?
Mr Gauke
I thank my hon. Friend for his question. The intention is that Sir John Chadwick’s report will reach its conclusion in mid-July; at the same time the independent commission will be established. We are making progress in this area—in contrast, I am afraid, to the dither and delay of our predecessors.