Loan Charge

Debate between Justine Greening and Peter Bottomley

Thursday 4th April 2019 Commons Chamber

[Justine Greening]

My right hon. Friend is absolutely right. One of my constituents has done their own estimate and they believe that this could cost them £230,000. They say:

“I was first contacted by HMRC in 2013/14 about income from just the 2008-2010 tax years and having accepted my appeal letter to their enquiries I haven’t heard anything from them since. So 5 years on, I still have no clear idea what HMRC believes I owe them and the real justification for it.”

As they say:

“Communication from HMRC has been inconsistent and sporadic at best. In addition”—

I will come on to this issue—

“HMRC does not appear to be targeting the companies who were (and in some cases still are) providing these tax planning schemes, but rather the individuals who used them. Sadly, there are still people joining these schemes today, unware of the impact it is likely to have on them.”

HMRC’s approach to the loan charge has been punitive rather than proportionate. For some constituents it has essentially grouped up to 20 years of charges and lumped them into one big sum that they are now being asked to pay. [Interruption.]

With the sound of a leaky roof in the background—this has been an interesting week for other events happening while Members have been giving speeches—I will conclude by asking a really important question. What on earth is being done to tackle those promoting the schemes? They are the people who have, effectively—and, I believe, knowingly in many cases—mis-sold schemes, got rich off the back of them and left the people who took part in them to pick up the pieces.

[Sir Peter Bottomley (Worthing West) (Con)]

Over 10 years ago, Roy Faichney and David Perrin—non-accountants in an accountants tax firm—were arrested and later convicted, but their clients were not told that HMRC might come after them 10 years later. That strikes me as grossly unfair and out of time.

[Justine Greening]

I think that is right, and it would be good if the Minister was clearer about how many schemes HMRC is aware of, how many are currently being tackled by HMRC, how many remain unaddressed, what penalties have been issued in relation to closing down such schemes, how much that has totted up to, and what action has been taken against the directors who pursued and promoted those schemes, often in the knowledge that they were not compliant with HMRC. Will they ever be barred from being directors in future? They are clearly reckless and, I think, not fit to be company directors. We need to send out a message across the industry that such behaviour is not acceptable, that lost revenue will be sought to be recouped from the businesses and companies promoting the schemes first—that they are the ones at risk—and that then, perhaps secondly, there will be more clear-cut rules for people to understand when they are putting themselves and their assets at risk by participating in such schemes.

It really is time that HMRC did all the people caught up unwittingly in this loan charge issue a favour, set out a sensible compromise that draws a line in the sand and does not go back so far, treated them with dignity and enabled them either, where they still owe money, to settle or, where not, to move on with their lives and get clarity as soon as possible.

Schools: National Funding Formula

Debate between Justine Greening and Peter Bottomley

Thursday 14th September 2017 Commons Chamber

[Justine Greening]

First, as I set out today, there will be a minimum 0.5% cash increase per pupil for all schools in 2018-19, increasing to 1% by 2019-20, and that settlement is actually more generous than the Opposition manifesto commitment. Those schools are now doing better under our funding formula.

Secondly, we are investing huge amounts in our schools estate, not least through the condition improvement fund. We have managed to get ahead of the school places crisis that was left to us by the previous Labour Government. Ensuring that we have the school places in our system that children need is a major thing that we have done.

[Sir Peter Bottomley (Worthing West) (Con)]

I welcome the changes to a system that was unfair, opaque and out of date. I am glad that the Secretary of State has listened to the headteachers, the governors, the MPs and the parents, who have asked that no school should be left behind and that those that have been dramatically underfunded should be able to catch up within two years, and I am glad that she has lifted the cap on the transition. Lastly, I recognise that quality of teaching is also important in addition to the funds, and I hope that teachers will recognise that this increase in funding acknowledges their contribution to the education of all our children.

[Justine Greening]

My hon. Friend is right that it is important that schools that have been underfunded for years while being held to account on exactly the same standards as every other school can catch up properly. As for the quality of teaching, the continued professional development of teachers and the teaching profession is an intrinsic part of school improvement and the two are inextricably linked. Today, we have announced the first successful bids to our teaching and leadership innovation fund, which is about ensuring that we lift up our teaching profession and is particularly directed towards schools in parts of the country where we know we can do better.

Schools Update

Debate between Justine Greening and Peter Bottomley

Monday 17th July 2017 Commons Chamber

[Justine Greening]

In answer to the right hon. Gentleman’s first point, we are maintaining real-terms funding per pupil, as I have set out today. That sits alongside the other work that we are doing with schools to enable them to unlock efficiencies from the investment that is already there. I have also set out further additional funding for high needs today, which I hope he will welcome, given his long-term interest in this area.

[Sir Peter Bottomley (Worthing West) (Con)]

I hope that my right hon. Friend will accept that the West Sussex MPs who have been working with heads and parents will welcome the progress in her statement. May I say on behalf of the Back Benchers, perhaps the Parliamentary Private Secretary and the Minister for School Standards that we have all worked together and hope to continue doing so to get even more progress in future?

[Justine Greening]

It has indeed been a team effort to work out how we can best bring forward what is a very difficult thing: a national funding formula that broadly works for many, many different schools across our country, wherever they are, and one that is fair. We have more detail to set out in the autumn, but I hope I have given a clear signal to the House today that we are moving in the right direction and will indeed take this step forward to ensure fair funding.

M5 Motorway Accident

Debate between Justine Greening and Peter Bottomley

Monday 7th November 2011 Commons Chamber

[Justine Greening]

There is not much that I would like to add at this point. We need to let the police get on with their investigation, rather than prejudging what they might say were the causes of the collision. The other point is that the pilot on hard shoulder running, on the M42, proved it to be safer.

[Sir Peter Bottomley (Worthing West) (Con)]

The public tragedy of these seven deaths, so far, needs to be considered alongside the 35 private tragedies—the average number of deaths per week—in comparison with the 107 deaths each week 25 years ago. I commend my right hon. Friend for saying that we want to look for the causal factors and then consider what further measures we can take. However, will she get the Government to consider whether the question of the change from summertime to wintertime, which brings with it an average death cost in this country of 70 lives a year—two weeks’ worth of deaths—is worth returning to in time? I do not want an answer, or a promise to do it, straight away, but that is one of the decisions that the House could take, and it would save a significant number of lives.

[Justine Greening]

My hon. Friend, as a former Minister with responsibility for roads, always has an important point to make. I am aware of the arguments about daylight saving time—there are arguments on both sides—but obviously we have to be conscious of how any change would affect not just the south of our country but the north. I have no doubt that we will continue to have that debate over the coming months.