Amendment of the Law
Lindsay Hoyle Excerpts(13 years, 1 month ago)
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Chris Bryant
I am particularly glad that my right hon. Friend has reminded that lot over there on the Tory Benches that they fully supported Labour’s spending plans up until the end of 2008 and promised to spend the additional benefits of growth on the economy, which they never seem to remember. That lot on the Liberal Democrat Benches, when they were sitting over here on the Opposition Benches, urged even greater levels of spending, so we are not going to take any hypocrisy from them.
In addition, will my right hon. Friend remind that lot over there of one further piece of history? In 1924, George Lansbury—
Caroline Flint
If my hon. Friend was going to point out that when we go into recession we have to ensure that we do not go into a depression, that is exactly what the Labour Government did. Things may look rosy from the leather seats of the Secretary of State’s new Government Jag, but for ordinary people, the Government’s plans are hurting but they are not working.
Mr Deputy Speaker (Mr Lindsay Hoyle)
Order. I remind Members that speeches are limited to six minutes, although I might look to reduce that to four. A huge number of Members wish to speak, and there is a lot of pressure today and tomorrow, so we might have to reduce the limit to four minutes.
Mr Deputy Speaker (Mr Lindsay Hoyle)
Order. If people are going to intervene regularly, I am going to have to drop them down the list, because we are really struggling to fit everyone in.
David Wright
I will not.
In the Budget, we have seen that growth estimates have gone down for last year, this year and next year. Borrowing is up by £43.4 billion, and debt interest will be £17.6 billion higher. According to the Chancellor’s forecast, unemployment will go up by up to 200,000 every single year until 2015. That is a significant price for people to have to pay for what I believe are the sado-monetarist views of this Chancellor.
We have seen a massive squeeze on living standards right across the board. The hon. Member for Bury St Edmunds (Mr Ruffley) rightly spoke of the impact of inflation on the economy. People see it every time they go to their local supermarket as the costs of the core products that they buy rise significantly. There is an impact on the cost of food, as well as significant rises in the cost of fuel. It is interesting that the Chancellor’s much-heralded policy for cutting fuel costs was destroyed within two days of the Budget, when I saw a gentleman arguing with the staff in my local Sainsbury’s filling station. He said, “Hasn’t the price of petrol gone down?” and they said, “Yes, it went down on Budget day, but we put it back up again the day after.” That policy was blown out of the water as soon as it was announced, and, anyway, the Chancellor had already put a 3p a litre rise in the price of petrol into the system through the VAT increase.
It was interesting to listen to the Chancellor’s speech. It contained a complicated segment at the beginning on tax thresholds, which he went through very quickly. That was because it contained all the clawbacks relating to the changes in tax thresholds, following the debate on the consumer prices index and the retail prices index and the announcements of all the cash that he was giving out—actually, he did not give out that much cash; he gave out a bit. All the cash that went out had already been clawed back in the measures announced at the start of his speech. The impact of his decisions in last year’s Budget was that the average family with a child would be paying about £450 a year more in VAT anyway, so he had already wiped out any goodies to be given away in this year’s Budget by the approach he took last year.
There has been much debate about youth unemployment. The corporation tax cut from the Chancellor is one way of proceeding for a Budget strategy, but I believe he could have done something far more radical: instead of giving away that corporation tax cut, he could have spent the cash on a massive programme of employment, training and support for young people in the economy. He could have made that choice and, as I say, invested the money in training and skills for young people.
The Red Book is useful for looking at the Government’s overall strategy. The table on page 12 is headed “International consensus on fiscal consolidation”. It shows that we are up there as consolidators-in-chief with France, Turkey, Canada and Spain. There is, however, a significant outlier on this table—it is the United States. The table suggests that the US is going to move its fiscal consolidation position significantly next year, but I have my doubts. Let me explain what I think is going on.
I believe that the US is looking more carefully at where its economy is and is planning significant investment to lift its people out of recession. Obama’s programme on public spending and expenditure right across the board shows that he is not pursuing a strategy of significant fiscal consolidation, and I doubt whether he will next year either. He is trying to ensure that his economy recovers throughout this period of downturn and that it does not go into significant levels of depression.
Finally, the enterprise zones are positive, but infrastructure investment has to be put in place alongside them; otherwise, they will not work and local economies will be blighted. This is a Chancellor who has got it generally wrong in the Budget. He needs to change his strategy and adopt a plan B very—
Amendment of the Law
Lindsay Hoyle Excerpts(13 years, 1 month ago)
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Jesse Norman (Hereford and South Herefordshire) (Con)
I am not sure quite which hallucinogenic substances are being ingested on the Opposition Benches, but if I may ask a question—
Mr Deputy Speaker (Mr Lindsay Hoyle)
Order. I think that we will reconsider the suggestion about drug taking.
Jesse Norman
I am happy to withdraw the suggestion and to make it clear that the substances in question were not hallucinogenic. May I simply ask the shadow Chancellor—
Mr Deputy Speaker
I take it that you have withdrawn the suggestion, Mr Norman. I accept that. Are you now going to pose a very quick question?
Jesse Norman
Will the shadow Chancellor enlighten us on why WPP left this country under the last Administration, and why it has now returned, as has been announced in the news today?
Mr Umunna
I will give way shortly.
I have come to the Chamber from this morning’s Treasury Committee sitting, where I asked Jonathan Portes, who until February was chief economist at the Cabinet Office, about this issue. I asked him whether abolishing the right to request flexible working for the parents of 17-year-olds would make a big difference in increasing GDP or growth. He made it very clear that scrapping the extension will “do nothing for growth”. I then asked HSBC’s chief economist whether he would be revising his GDP figures as a result of the scrapping of the measure, and he told me that he would not.
This measure seems to be a gimmick, which tends to suggest that the Government think that watering down employee rights is a substitute for a properly thought out growth strategy. All the figures I have just presented and all the arguments I have just made for the introduction of the extension, which was planned for April, are in the Government’s own impact assessment of the measure. Will the Government think again about it? I grant that they do not and will not accept our arguments to revise their plan for fiscal consolidation, but I suggest that it would be very wise for them to think again on this small measure.
Mr Deputy Speaker (Mr Lindsay Hoyle)
I call Gavin Williamson, who has until 5.42 pm—about three minutes. I am sorry about that.
Financial Statement
Lindsay Hoyle Excerpts(13 years, 1 month ago)
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Mr Deputy Speaker (Mr Lindsay Hoyle)
Before I call the Chancellor of the Exchequer, it may be convenient to remind hon. Members that copies of the Budget resolutions will be available to them in the Vote Office at the end of the Chancellor’s speech. It may be also appropriate to remind Members that it is not the norm to intervene either on the Chancellor of the Exchequer or on the Leader of the Opposition.
Amendment of the Law
Lindsay Hoyle Excerpts(13 years, 1 month ago)
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Edward Miliband (Doncaster North) (Lab)
The Chancellor spoke for an hour, but one fact says it all, and he could not bring himself to mention it. Growth is down, last year, this year and next year. It is the same old Tories. It’s hurting, but it isn’t working.
What did the Chancellor say last year about growth? “Judge me on the figures.” Well, judge him we will. Every time he comes to the House, growth is downgraded. Last June, 2011 growth was down from 2.6% to 2.3%. In November, it was down again. In January, what did the Prime Minister say? His three priorities for the year were growth, growth, growth. And what has happened in this Budget? Growth is down, down, down. Taking account of all the measures—[Interruption.]
Mr Deputy Speaker (Mr Lindsay Hoyle)
Order. We should show the Leader of the Opposition the same courtesy that was shown to the Chancellor of the Exchequer.
Edward Miliband
What is the Chancellor’s singular achievement? To deliver a budget for growth that downgrades the growth forecasts. Growth is down this year to 1.8%, and it is downgraded next year too. That did not happen by chance; it happened by choice—the Chancellor’s choice—and it was the wrong choice: to go too far and too fast. In the Chancellor’s own words in the June Budget, he chose to go £40 billion further and faster in tax rises and spending cuts than our plan to halve the deficit over four years. That pace of cuts has seen consumer confidence fall in almost every month since the general election.
In his first Budget, the Chancellor promised
“steady and sustained economic recovery”.—[Official Report, 22 June 2010; Vol. 512, c. 168.]
When last September’s growth figures were published, he took the credit. He called the figures “a vote of confidence” in the Government’s economic policy. But when the economy contracted in the fourth quarter, what did he do? He blamed the snow. Even he must appreciate the irony. While the Prime Minister was grounded from his Christmas trip to Thailand, the Chancellor was on the piste in Klosters. I suppose it was the right type of snow for a ski-ing holiday; it was just the wrong kind of snow for our economy.
What is it about the British snow? There was worse snow in Germany, a big freeze in France, and in the United States the worst blizzards for decades. Despite all that, those country’s economies grew in the fourth quarter. While our growth forecasts have worsened, theirs have improved. [Interruption.] The Chancellor should calm down a little. The German economy is forecast to grow more strongly than last year, and so is that of the United States. Growth in the world economy has been revised upwards. Which is the major country that is downgrading its growth forecasts? The United Kingdom. It is not the wrong type of snow that is to blame, but the wrong type of Chancellor—the wrong type of Chancellor in the wrong type of government with the wrong priorities for Britain—[Interruption.]
Mr Deputy Speaker (Mr Lindsay Hoyle)
Order. Courtesy should be shown. The public out there also want to hear what the Opposition have to say. If there are Government Members who do not want to listen, will they please leave the Chamber? The public out there want to hear both sides of the argument. Some people may agree, and some may disagree.
Edward Miliband
Government Members shout and jeer, Mr Deputy Speaker, as unemployment hits a 17-year high. What more do we need to know about the Conservative party?
The Chancellor also promised in his June Budget that he would deliver “low inflation”, and what has happened? Inflation has risen, month after month after month. That did not simply happen by accident. It is happening because the Chancellor made the wrong decision on VAT. Same old taxes, same old Tories.
The Chancellor promised us falling unemployment too, and what has happened since he delivered his first Budget? Over 60,000 more people are now looking for work. To this Tory Government, just like those of the past, unemployment is a price worth paying. People who heard the Chancellor’s Budget speech today will wonder what world he was describing. [Interruption.] I think that the Chancellor should listen to this.
In the constituencies of more than 130 Members of Parliament, 10 people are chasing every vacancy. One in five young people is looking for work. Families are seeing their living standards squeezed, not just this year but year after year. What do the Government say to communities that are losing their jobs? Let me tell the House what they recently told the people of Newport, justifying the closure of their passport office. They said that the redundancy payments of the staff who were being sacked would provide a
“boost in trade for the local economy”.
What kind of planet do these people live on? On growth, on inflation, on unemployment, on the promises that he made, the Chancellor could not bring himself to admit that his second Budget tells the story of the failure of his first. At this stage of the recovery, growth should be powering ahead and unemployment should be falling fast. Every month that unemployment is higher than it should be stores up long-term damage for our country. Every month when growth is lower than it should be, that hits the future potential of our economy. The problem is that, instead of admitting it, the Chancellor refuses to change course. What did the Energy Secretary say? If the figures change, the Government
“should not be lashed to the mast”
of their reckless gamble. They should be willing to change and to think again.
It is not as if the Government have not had practice in the U-turn business. Indeed, they are becoming past masters at it. On forests, school sport, housing benefit for those looking for work and even the vanity photographer, they have been forced to climb down. It is on this, the issue that matters most, that they are least willing to change. At the weekend we learned something new about the Chancellor. Apparently, his political aspiration is to be a blend of Nigel Lawson and Michael Heseltine. Another comparison springs to mind. We see the same hubris and arrogance that we saw in the early 1990s, the same broken promises, the same view that unemployment is “a price worth paying”. The Chancellor is Norman Lamont with an iPod, and on his playlist, no doubt, is “Je Ne Regrette Rien”.
This is not a growth Budget. It is not a jobs Budget. It is a Budget for more of the same, from a complacent, arrogant Chancellor in a complacent, arrogant Government. It’s hurting, but it isn’t working.
Let us not forget that these are not just the Chancellor’s decisions, and they are not just the Prime Minister’s decisions; they are the Deputy Prime Minister’s decisions too. He is an accomplice to the Tory plan. When it comes to the economy, the man who coined the phrase “alarm-clock Britain” has the snooze button well and truly on. Nobody voted for this deficit plan, least of all his Liberal Democrat voters, who were told in promise after promise that he would never countenance it. If I can put it this way to him, it is no wonder nobody wants to share a platform with him.
On the measures in the Budget, I welcome the support for the armed forces, and on the measures the Chancellor proposes to support growth, we will look at them but there is little reason to believe they will make the difference to growth that we need. Indeed, the Justice Secretary fell asleep during the Chancellor’s speech, his growth strategy was so compelling. The Office for Budget Responsibility has already factored in every single measure he has just announced, and it still produced today’s downgraded growth forecast.
We cannot blame people for being sceptical when the Chancellor says he has a new flagship policy for growth, because they are asking what happened to his last flagship policy for growth at the centre of his June Budget. Does anyone remember the national insurance holiday? He was strangely silent about it today. In June, he took the credit at the Dispatch Box for helping 400,000 small firms, but how many have actually benefited? He has been strangely shy in revealing the figures, but someone let slip to the Financial Times that by mid-January it wasn’t 400,000, it wasn’t 40,000, it wasn’t even 4,000; it was less than 0.5% of the number he promised, just 1,500 businesses.
On the Chancellor’s incentives for small firms, we will look at the detail, but I have to say that his decision to cancel flexible working for families with children aged between 16 and 18 is extraordinary. This Prime Minister took the credit for championing that policy with Mumsnet, and then a few months later he takes the credit with small business for dumping it. We have to ask, has he got no shame? The idea that families needing flexibility imperil our economic future is, frankly, absurd, and it tells us all we need to know about this Government’s values and how they think our economy succeeds: greater insecurity as the route to greater prosperity. We take a different view. Flexible working is yet another broken promise from the broken-promise Prime Minister.
While we are on the subject of broken promises, let us remember what the Prime Minister said before the election: he said he would be the banker basher in chief. The Chancellor made great play of that in his Budget speech, but the reality is this: last year Labour’s bonus tax raised £3.5 billion—it is in the Red Book—and this year the bank levy raises just £1.9 billion; it is a Tory Government cutting taxes for the banks while they raise taxes for everybody else. He should have used the money from the bank levy to invest in the future jobs fund—which they abolished—to make a real difference to housing in this country and to boost enterprise.
They are failing on growth, and they are failing on living standards too. What did the Prime Minister say before the election to families receiving tax credits? He said that below £50,000 a year, their tax credits were safe. When Labour said otherwise, the Home Secretary said this:
“That is a lie, and it is irresponsible for Labour to be…worrying families needlessly.”
But what is the truth? Next year, over 1 million families with incomes as low as £26,000 will lose all their tax credits. The Government should be ashamed of their broken promises on tax credits.
That is part of the cost of living crisis they are imposing. The Chancellor trumpeted the rise in the personal allowance, and said everybody earning under £35,000 would be better off, but let us look at the facts. He came along in the June Budget and put up VAT, costing families £450 a year. Now he has the nerve to expect them to be grateful when he gives them a fraction of their own money back. What did the Institute for Fiscal Studies tell us this morning? It said:
“there is an awful lot of giving with one hand...and taking away with lots and lots of other hands.”
It is a classic Tory con.
What about their decision on petrol? The Chancellor has done the same thing again. He has cut duty by 1p, but he has whacked up VAT on fuel by 3p. Families won’t be fooled; it’s Del Boy economics. For a two-earner family, both on average wages, it will be 5p up in the basic rate of income tax and just 1p down next year. What do the British people know from history? They know that every Tory tax cut ends up costing them more; same old Tories, same old deceit.
We needed a Budget that changed the direction of economic policy. We needed a Budget that protected the promise of Britain that the next generation does better than the last. We needed a Budget that changed course on cutting too far and too fast. The Chancellor said at the weekend, with his customary modesty, that he had completed his rescue mission of the British economy. After this Budget, it is not the Chancellor who is rescuing the country; it is the country that needs rescuing from the Chancellor. When families look at this Budget—look at the squeeze on their living standards, look at the job losses in their communities—they will conclude: it’s hurting but it isn’t working.
Ian Murray (Edinburgh South) (Lab)
On a point of order, Mr Deputy Speaker. A former Chancellor of the Exchequer, Mr Hugh Dalton, resigned in 1947 for leaking part of his Budget to a journalist when on the way into the Chamber to deliver it. Given that we have heard nothing in the Chancellor’s statement today that had not already been trailed in the media on Monday, Tuesday and this morning, please will you, Mr Deputy Speaker, use the good offices of the Speaker to make sure that senior members of this Government make important statements to the House before going to the media?
Mr Deputy Speaker (Mr Lindsay Hoyle)
The principle is clear, and it will have been heard by those on the Treasury Bench. We must now move on.
Mr Deputy Speaker (Mr Lindsay Hoyle)
Order. Many Members want to speak today—quite rightly—and we want to get as many in as possible. There is no time limit on speeches but brevity would help other people.
Budget Responsibility and National Audit Bill [Lords]
Lindsay Hoyle Excerpts(13 years, 1 month ago)
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Mr Deputy Speaker (Mr Lindsay Hoyle)
Order. The hon. Gentleman knows what I am going to say. I do not want to spoil what he is going to say on Third Reading, so it might be better if he stuck to the subject of the amendments. That would be more useful to us at this stage.
Mr Cash
I am very glad to be able to follow that advice. In order for the provisions contained in the amendments to be inserted in the Bill, it is essential for the House to be aware of the implications of judicial authority, the assertions of the Supreme Court in that context, and the sovereignty of Parliament. There is, for example, the question of fiscal policy and the charter, which is set out in clause 1(2) and to which the question of economic growth and job creation would be added by the amendments. Clause 6(3) states:
“The Office must, in the performance of its duty under section 4, act consistently with any guidance included in the Charter by virtue of this section.”
I am deeply worried about the legal status of the charter in this context.
As for fiscal policy, I remind the House that the other day, probably for the first time since 1640—Pym and Hampden and all that—the Government passed a motion saying that we were only primarily responsible for it. I voted against the motion—as did my hon. Friend the Member for Bury North (Mr Nuttall) and a number of others—but the whole House should have voted against it, because in fact we are exclusively responsible for fiscal policy, and that is what the Bill is supposed to be based on.
What worries me particularly is the inconsistency with fundamental questions that are in the background, involving the primacy of European law, sovereignty and judicial authority. I need make no further points, because in a nutshell, if those issues cannot be reconciled with what is in the Bill, and if the duties of the Office for Budget Responsibility are to examine and report on the sustainability of the public finances, to prepare “fiscal and economic forecasts”, to make assessments and analyse sustainability, and to act consistently with the charter as a matter of law, we are surely entitled to ask: which law will prevail?
Obviously, I agree with all the ideas that are being presented. We all want an efficient economy, we all want jobs and we all want growth. We cannot survive without growth, and we cannot generate the revenues to pay for the public sector without that growth in the private sector. What worries me is that all those ideas are being imposed through a Bill, rather than through the judgment of Ministers who are accountable to the House of Commons, and should not be required to refer back to the judicial authority of the courts or the alleged primacy of the European Union.
I fear that we are embarking on one of those Lewis Carroll-type situations. I am reminded of “The Hunting of the Snark”. Members may recall the phraseology. We know that we want it, we know it is there, but the question is, what is it going to do? I have a serious problem with the Bill for that reason. I fear that we are engaged in a process of wishful thinking rather than achievement, and that we are being locked into a withdrawal from parliamentary accountability—and, as some Members may know by now, I regard that as the ultimate test of our democratic system.
Mr. Deputy Speaker (Mr Lindsay Hoyle)
Order. We are not going to be drawn into the party politics of Scotland. Let us stick to the amendment.
Ian Murray
Thank you, Mr Deputy Speaker. I will resist the temptation to have another go at the Scottish National party in the Chamber, and will take your guidance.
I shall finish on two quick points. First, the level of borrowing before the financial crisis did not cause the recession. Every country in the world was affected, so it does not take a rocket scientist to work out that it was a worldwide financial crisis. The coalition Government’s propaganda—
Scotland Bill
Lindsay Hoyle Excerpts(13 years, 1 month ago)
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Mr Davidson
On a point of order, Mr Hoyle. According to the votes, eight nationalists have been voting on all these things, and now they are down to seven. Has somebody been kidnapped? [Laughter.]
The Chairman of Ways and Means (Mr Lindsay Hoyle)
Now, then.
Clause 32 ordered to stand part of the Bill.
Clause 33
Maximum penalties which may be specified in subordinate legislation
The Parliamentary Under-Secretary of State for Scotland (David Mundell)
I beg to move amendment 31, page 25, line 31, leave out ‘the amount specified as’.
The Chairman of Ways and Means (Mr Lindsay Hoyle)
With this it will be convenient to discuss Government amendment 32.
David Mundell
The Government have identified the need for these minor technical amendments to clause 33, which updates the maximum penalties that can be applied to criminal offences created in subordinate legislation made under the Scotland Act 1998. The amendments are sensible additions that will ensure consistency across the different legal systems within the UK. The first amendment is a minor technical amendment to ensure consistency in the terminology used to refer to fine limits for different jurisdictions, which are provided for in the amendments to section 113 of the Scotland Act made by clause 33.
The second amendment ensures that the correct terminology is used in relation to fine limits in section 113 for either-way offences created in relation to the law of England and Wales and Northern Ireland, with the statutory maximum rather than level 5 on the standard scale on summary conviction. Level 5 has meaning only in relation to summary-only offences by virtue of the definition in the Interpretation Act 1978. Clause 33, as introduced, makes this terminology change in relation to fine limits for Scots law offences, and the amendment makes the same change for offences that form part of the law of England and Wales and Northern Ireland.
The amendments will ensure consistency in the terminology used to describe the fine limits for offences created in the Scotland Act orders for each of the legal jurisdictions in the UK.
Amendment 31 agreed to.
Amendment made: 32, page 26, line 2, leave out from second ‘exceeding’ to end of line 3 and insert—
(i) in the case of a summary offence, level 5 on the standard scale,
(ii) in the case of an offence triable either way, the statutory maximum,’.—
(David Mundell.)
Clause 33, as amended, ordered to stand part of the Bill.
Clauses 34 to 37 ordered to stand part of the Bill.
Clause 38
Commencement
Amendments made: 65, page 28, line 5, leave out ‘made by statutory instrument’.
Amendment 66, page 28, line 9, leave out ‘made by statutory instrument’.—(David Mundell.)
Clause 38, as amended, ordered to stand part of the Bill.
Clause 39 ordered to stand part of the Bill.
New Clause 18
Orders
‘Any power to make an order conferred by this Act is exercisable by statutory instrument.’.—(David Mundell.)
Brought up, read the First and Second time, and added to the Bill.
New Clause 1
Abolition of regional members of Scottish Parliament
‘(1) The Scotland Act 1998 is amended as follows.
(2) In section 1—
(a) in subsection (2) “Two members” is substituted for “One member”; and at the end there is inserted “save for those identified in paragraph 1(a) to (c) of Schedule 1, each of which shall return one member,”;
(b) subsection (3) is omitted.
(3) In section 5, subsections (1) and (3) to (9) are omitted.
(4) Sections 6, 7, 8 and 10 are omitted.
(5) In section 11, subsection (2) is substituted by—
“(2) A person is not entitled to vote as an elector in more than one constituency at a general election, and may cast no more than two votes at a poll for the return of constituency members.”.
(6) In section 12—
(a) in subsection (2), paragraphs (e) and (f) are omitted;
(b) subsection (3) is omitted;
(c) after subsection (4) the following subsection is inserted—
“(4A) The provision to be made under subsection (1) must include provision for—
(a) each elector to cast one or two votes of equal value, with no more than one vote to be given to any one candidate, in constituencies returning two members;
(b) the two candidates with the most valid votes to be elected in such constituencies.”.
(7) In Schedule 1—
(a) for paragraph 1 there is substituted—
“(1) The constituencies are—
(a) the Orkney Islands,
(b) the Shetland Islands
(c) the Western Isles [Na h-Eileanan An Iar], and
(d) the parliamentary constituencies in Scotland at the time of an ordinary or extraordinary general election for the Scottish Parliament, except the constituencies of Orkney and Shetland and Na h-Eileanan An Iar”;
(b) paragraphs 3 to 14 are omitted.’.—(Mr Donohoe.)
Brought up, and read the First time.
The Chairman of Ways and Means (Mr Lindsay Hoyle)
With this it will be convenient to discuss new clause 2 —Regional members of the Scottish Parliament—
‘(1) The Scotland Act 1998 is amended as follows.
(2) In section 81, after subsection (2), there is inserted—
“(2A) No provision shall be made under subsection (2) for any allowances for representative work in any constituency or region by a regional member in a registered political party or a group of such regional members; and no allowances may be made for offices or staff or related expenses incurred by such members other than in connection with or at the Parliament’s place of meeting or in connection with a committee meeting.
(2B) Any allowances paid to regional members in a registered political party shall be founded on the assumption that they are representatives of that party from the relevant region and not from any single constituency.”.
(3) In Schedule 3, after paragraph 2 , there is inserted—
2A The standing orders shall include provision for withdrawing from a regional member in a registered political party any or all of his rights and privileges as a member, including any allowances, if he is found to have purported to act, or has held himself out, as a constituency member for any single constituency or for a group of constituencies other than the region from which he was elected.”’.
Mr Donohoe
New clauses 1 and 2 relate to regional Members of the Scottish Parliament, who were introduced in an irksome move and have been with us for a long time—since the outset of the Scottish Parliament.
HM Revenue and Customs
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Guto Bebb (Aberconwy) (Con)
The closure of tax offices is an important issue in north Wales. I hate to be parochial, but I represent an area in which about 20% of the working population are self-employed. The need for self-employment is paramount in north Wales, because the economy is so fragile that unless we create our own job opportunities, we cannot work at all. Unfortunately, over the past few years we have seen the downgrading of the Porthmadog, Bangor and Colwyn Bay tax offices. The 20% of the working population who are self-employed must now travel to Wrexham and even over the border to be served, which is a big problem. As the hon. Gentleman has pointed out, when a small business is forced to use an accountant because it is unable to talk to—
Mr Mudie
I am sorry that you stopped the hon. Gentleman, Mr Deputy Speaker, because his was a better speech than mine. I do not think that he needed to use the word “parochial”, or even to apologise if he thought that he was being parochial. In fact, he was being regional. Here in London, it is assumed that any region above Watford can be written off. The hon. Gentleman has made an extremely valid point.
I know that my hon. Friend the Member for Cumbernauld, Kilsyth and Kirkintilloch East (Gregg McClymont), who is sitting behind me, is a strong supporter of tax office staff. However, I agree with the Chairman of the Select Committee about the number of telephone calls that are not answered. At one stage, the figure was 43%. One of the professional witnesses who gave evidence to the Committee said that an HMRC tax manager had been in his office and observed that it took 12 minutes for a call to be answered and seven minutes simply to change a tax code. That simple transaction took 20 minutes. That is a witness’s statement, and a very good one. I am sure that the Minister has read all the evidence given to the Committee, and has noted that that particular witness described his experiences brilliantly.
Mr Mudie
That is an interesting point.
I am using up time rapidly, but let me mention in passing another feature of call centres. Telephoning 0845 numbers can be very expensive for pensioners—indeed, for everyone. The fact that people have to hold on for so long does not help, but in any case it is not the right way to decide complex matters. It is best for people to deal with those face to face. The best people in the whole business are the agents, as they are the professionals. They take the frustration and get angry about it—and they have given good evidence. The ordinary individuals are in the worst position, however. The professionals get used to things and can get on with other tasks, yet, as the professionals said, those who are not represented get the worst deal, and with office closures, cutting hours, and relying increasingly on telephone calls, e-mails and letters, the whole system knocks out a fair number of the population. That is what is happening. Plenty of Members want to speak, and they will spell out their constituents’ experiences.
Does the system need to be improved and will it be improved? I do not think it will, first because it goes against the grain—I will explain that. Sadly, every time witnesses from HMRC have appeared before us, they have been in a state of denial. If someone has a problem, there is no chance of their dealing with it unless they own up to it and accept it. I sympathise with them in a way, however. The hon. Member for Chichester said we are to blame and that is true; we are to blame, in particular the Ministers. It is hard for a civil servant to go before a Select Committee and say, “Yeah, I admit it; we can’t do this because we don’t have the people.”
We look for loyalty and a straight bat from civil servants, but the way we are doing things is not generally the best way to get a real dialogue. Therefore, when we have them before us in a couple of weeks, I am not sure that Dame Lesley will do anything other than give us the Geoff Boycott treatment, or even do a Pietersen and knock us out of the ground a couple of times. Because she and the management are in this state of denial, I cannot see things happening unless the Minister takes some steps. I really do think this comes down to staff and resources. Unless they are in place, we cannot load new jobs on.
Finally, let me describe a few points that should push the Minister to want to have a fresh look at resources. One of them is to do with what the Chairman of the Select Committee said about the integrity and reputation of the system, and real tax compliance in this country. If we frustrate and ignore people, and make it difficult for them to get explanations, one way or another, non-compliance will grow. There will be increasing disrespect for the system and the people in it, and a growing feeling that they are not here to help. The tax inspectors and staff are adamant that they are here to help however, and that has always been my experience at that level—when we can get to speak to someone, they are helpful.
If something is not done and we treat people in this way, they will respond in a manner that I think is natural, which is to say, “Get on with it”—I almost said “Sod it”—and “I am not complying.”
Mr Deputy Speaker (Mr Lindsay Hoyle)
Order. We cannot say “Sod it.” I am sure the hon. Gentleman will withdraw that.
Mr Mudie
Well, I did withdraw it; I said I will not use the phrase “Sod it.”
I have made points about management being in denial and non-compliance. The next point is more current. We live in a time of austerity. It is a hard time and people’s wages and homes are being affected, yet the public are reading about Barclays paying £190 million on billions of pounds of profit, and about Vodafone being willing to pay £3 billion or £4 billion and having that available to pay to the Inland Revenue, but the Inland Revenue accepting £1.3 billion. This big multinational company is getting away with paying that amount of tax at a time when we are closing vital public services. We see Mr Green paying his wife through Monaco. In last Sunday’s papers, we read about a man with reputed wealth of £47 million being forced by someone he sacked to confess that he pays no tax at all because of the trust his father set up. Such stories are starting to resonate among ordinary people.
The Governor of the Bank of England came before the Treasury Committee yesterday, and at one stage in the evidence session he accepted that the anger we have witnessed in the past couple of years is nothing compared to what might happen when we see the real cuts, which are starting now. Last year, we talked a lot about cuts, but they amounted to only £6 billion. However, in Leeds recently, people invaded the council chamber when the budget was being fixed. There were people outside in wheelchairs whose benefits were being cut. Cuts were made to housing benefit. Students and trade unionists were also there. Some 1,000 jobs there are to go.
I genuinely say to the Government that a dangerous situation is brewing. A very affluent lady in America said, “Tax? That’s just for the little people.” That belief is starting to take hold in this country, as a lot of evidence shows. We need to get the tax people working properly. The tax gap is reckoned to be between £40 billion and £120 billion. We would not have these cuts if everybody paid their tax in a responsible fashion. That issue needs to be tackled, yet right now thousands of tax staff are being given their cards, when they could be dealing with it.
I want to finish by being helpful to the Minister. Another computer program is wending its way through the Department that has a crucial bearing on the Minister’s future. It deals with real-time initiatives and has very strict deadlines. It is for not only the Treasury but the Department for Work and Pensions, and it is a crucial factor in delivering the universal credit. I know that Treasury Ministers are very anxious to get universal credit in. To judge by past performance with computer systems, I wish the Minister luck. However, let me mark his card in this debate: all the signs from the Department are that, unless he gets a real grip and has a serious word with the Chancellor, that deadline will not be met. We are talking about not just one Whitehall Department negotiating a contract, but two, and when you put two Departments together, that leads, I fear, to trouble.
As an old friend of the Minister—we have worked together on the Treasury Committee and on other matters—I would not like that contract to be lost on his watch, and that is the third, and perhaps most compelling reason why he should do something about this problem.
Budget Responsibility and National Audit Bill [Lords]
Lindsay Hoyle Excerpts(13 years, 2 months ago)
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Jacob Rees-Mogg (North East Somerset) (Con)
I entirely agree with the hon. Lady on the difficulty of forecasting, as even the best economic forecasters get it wrong, but I wonder whether she was as shocked as I was to read in the Financial Times about the bullying of the International Monetary Fund by the Treasury and the Financial Services Authority. Was that not a pretty disgraceful way to behave?
Mr Deputy Speaker (Mr Lindsay Hoyle)
Order. We are in danger of going off into past subjects. The hon. Lady may be tempted to answer, but we have to deal with the Bill before us and not with speculation in a newspaper about bullying. I think that we will stick to the Bill.
Ms Eagle
Thank you, Mr Deputy Speaker.
Let me be the first to say that the Opposition support an independent OBR, so long as it is indeed independent. In that respect, the OBR has some ground to make up and some points to prove after its very difficult start in life. Initially it was located a few doors down from the Chancellor in the Treasury and consisted entirely of Treasury civil servants. Its much vaunted “independence” was utterly compromised in June last year when it was unwisely bounced into the politically convenient early publication of employment forecasts, suspiciously just ahead of Prime Minister’s Question Time—the Minister did not refer to that incident. The forecasts themselves turned out to be controversial and the OBR ended up looking more like an offshoot of the propaganda machine inside Conservative central office than an independent and trusted forecasting organisation. Sir Alan Budd, the interim head of the OBR, announced his shock departure shortly afterwards. We may well have to wait until he writes his memoirs to find out exactly what really happened.
Mr Mark Field
Although the hon. Lady makes a fair point about explicit mandates, it is surely also the case that there was absolutely no explicit mandate for any of the actions taken by the erstwhile Government after 2008, given the situation that we found ourselves in.
Mr Deputy Speaker (Mr Lindsay Hoyle)
Order. We are getting tempted once again. If Members stick to the Bill, that will be helpful.
Ms Eagle
There is a difference between having an economic policy that is put into place directly after a general election, when manifestos said one thing and the Government did another, and responding to a crisis that very few people saw coming and that threatened the entire infrastructure of the global banking system. There are obviously differences between those situations, but I respect the hon. Gentleman’s expertise in financial matters, particularly regarding the City.
The Government have chosen to cut public expenditure faster and deeper than any other country in the industrialised world except Iceland and Ireland. They have chosen to announce the deepest cuts in public spending in the UK since the second world war. Nine months into the life of this Government there is still no sign of any plan for jobs and growth, but sensible people know that without a plan for jobs and growth it will not be possible to get the deficit down as the OBR predicts it should come down. Meanwhile, the cuts are beginning to bite and the OBR has forecast that more than 330,000 public sector jobs will be lost. Some 10,000 police jobs have been announced as going so far, and there are reports that 250 Sure Start centres will close. Unemployment, which had begun to fall, is now rising again and inflation, which was low and falling when we left office, is now rising. All that is before the effects of the Government’s ill-advised decision to increase VAT. Growth has stalled.
Mr Deputy Speaker
Order. Hon. Members have been tempting us away from the Bill, but I am sure that the hon. Lady wants to stick to it. We do not want to be tempted through further interventions, so if she will keep to the Bill, that will be helpful.
Mr Deputy Speaker (Mr Lindsay Hoyle)
Order. I am trying to allow some freedom, but we are in danger of straying off Second Reading and on to a general debate about the economy. Can we please come back to the debate in hand?
Mr Bain
I am very grateful for that guidance, Mr Deputy Speaker.
To conclude my response to the hon. Gentleman, public sector net debt in 2007-08 was 36.5%, so it was lower than that which we inherited when we came to office.
The analysis of the IFS, in chapter 2 of its green budget, produces the conclusion:
“The financial crisis and associated recession have reduced revenues and, to a greater extent, increased public spending as a share of national income. Without action, there would have been an unsustainable increase in borrowing and debt. The government’s spending cuts and tax rises are forecast to be sufficient to return the UK’s public finances to a sustainable position, but the same would have been true under the fiscal consolidation plan set out by Labour in its March 2010 Budget.”
I doubt that even Government Members would label the IFS a deficit denier, so a fiscal mandate that pays insufficient attention to the impact of higher growth and employment in bringing the public finances back to stability will fail the needs of the country.
We look forward to scrutinising the Bill in Committee, to improving the operation of the OBR and perhaps, during the Bill’s proceedings, to securing the change in fiscal mandate that would improve the economic prospects of the British people.
Mr Deputy Speaker (Mr Lindsay Hoyle)
Order. We are getting tempted into an area where we should not be. We are dealing with Second Reading. I am sure the hon. Member for Bristol West (Stephen Williams) will stick to that, and that Mr Shelbrooke’s intervention will be relevant to it, and not a history lesson for those in the Chamber.
Alec Shelbrooke
Thank you, Mr Deputy Speaker. My hon. Friend was trying to make the point that the key word in the name of the Office for Budget Responsibility is “responsibility”.
Court of Auditors 2009 Report
Lindsay Hoyle Excerpts(13 years, 3 months ago)
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Kelvin Hopkins
The hon. Gentleman would have to explain the position to me, because I am not an accountant, but if there were no budget and no European Union at all, that would solve the problem entirely. Given that we are generous by nature and would want to help our fellow European countries to develop, some sort of transfer might be helpful and the European Union would be a way of doing it. So I am not against the idea of wealthy countries contributing to poorer countries, but the current cumbersome approach, which invites corruption and irregularity, is not the way to do it and does not work out fairly. I have made my suggestion a number of times and I hope that, in time, our Government at least will take it seriously. Perhaps we will be able to debate that in the European Councils themselves and discuss completely changing the method by which these fiscal transfers take place. I have made my point and I have spoken for long enough.
Mr Deputy Speaker (Mr Lindsay Hoyle)
Before I call the next speaker, may I remind hon. Members that at 8.54 pm I am going to call the Minister to do a three-minute wind-up? There are three speakers to come. The first will be Chris Heaton-Harris.
National Insurance Contributions Bill
Lindsay Hoyle Excerpts(13 years, 3 months ago)
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Mr Deputy Speaker (Mr Lindsay Hoyle)
With this we will discuss the following:
Amendment 2, page 2, line 21, leave out subsection (5).
Amendment 3, in clause 11, page 6, leave out lines 24 to 29.
Amendment 4, page 6, leave out lines 35 to 41.
Stephen Timms
I do not think that it is the Deputy Speaker’s responsibility.
Mr Deputy Speaker (Mr Lindsay Hoyle)
In fairness, some may hold me responsible, but I can assure the hon. Gentleman that I am not.
Stephen Timms
This is what the Prime Minister called for in November:
“The right framework, so it’s easier for new companies to start up”.
That is what he wants to happen in the east London tech city initiative. My question to the Minister is why is the Bill not doing that which the Prime Minister has so clearly called for? If it were my right hon. Friend the Member for Delyn appealing to the Minister to do that, I could understand why he would not be willing to do it, but it is the Prime Minister, who appointed the Minister to his job. Why is the Minister not doing what the Prime Minister said?
I commend to the Minister the Prime Minister’s speech of 4 November, in which he went on to describe what different parties are doing to help to secure this vision of a new high-tech city in east London:
“But what about here—in the heart of east London where there’s already so much to work with? We’re working with business to make sure the infrastructure and advice you need is in place. Imperial Innovations, the venture capital arm of Imperial College London”—
Harriett Baldwin (West Worcestershire) (Con)
I am fascinated to hear the right hon. Gentleman make these points, because I do not remember you proposing a national insurance cut. Indeed, you went to the polls with a national insurance increase.
Mr Deputy Speaker
Order. I was not in the Treasury. I am getting a lot of your blame, and I do not like it.
Stephen Timms
I reassure the hon. Lady that when I was in the Treasury, I put an enormous amount of effort into supporting exactly this kind of initiative. I supported the Thames Gateway initiative specifically, as well as other regeneration initiatives.
The Government are now saying that they will not give grant funding, but instead will provide incentives. This is our one opportunity to boost the incentives for establishing the kind of business that the Prime Minister wants in east London, and it will be forgone unless the amendment is agreed by the House this afternoon.
I do not know exactly how things work in the Conservative party. Who speaks to whom, and who is on whose side is all closed to me. It may be that the Exchequer Secretary feels that he does not need to take much notice of what the Prime Minister says. Perhaps he speaks to other people in his party. Let me therefore point out that it is not just the Prime Minister who wants the initiative to go forward. I point him to what the Mayor of London said—perhaps he takes more notice of him than the Prime Minister, I do not know. The Mayor said:
“we can and must do more to cement our position as a global magnet”.
He went on:
“the Olympic and Paralympic Games will bequeath to London a vibrant new business quarter in the east of our city. We must do everything we can to support its development”.
This afternoon, we have the opportunity to do something to support the Mayor of London’s call to develop the vision set out by the Prime Minister. We must not let this opportunity pass us by.
Perhaps the Exchequer Secretary does not take much notice of what the Mayor of London says, either—again, I do not know about that. If that is the case, let me point out to him the position of the Department for Communities and Local Government. Its website states:
“The Government is committed to making a success of the Thames Gateway…we will promote incentives to invest and develop in the area, instead of grant funding specific projects.”
That returns me to the point that I made a moment ago in response to the hon. Member for West Worcestershire (Harriett Baldwin). We understand that the Government are not now willing to contribute grant funding. We disagree with them about that, but are told that there will instead be incentives to invest and develop. Here we have an opportunity to provide just such an incentive. As far as I am aware, the Government have not come forward with any other incentive, and we can provide one along the lines of the policy that the DCLG has set out. We should take that opportunity, and I hope that the Exchequer Secretary will do so this afternoon by accepting the amendment, so that we can provide an incentive in an area that has been so specifically identified by the Prime Minister, the Mayor of London and the DCLG.
The DCLG website also states that the Government will
“work with other departments to identify how their programmes bear on the Thames Gateway and need to be adapted”.
The initiative in the Bill clearly needs to be adapted to fulfil the Government’s policy for the Thames Gateway. I hope that the Minister will tell us what representations he has received from the DCLG, because it is an extraordinarily disjointed approach for one Department to say that it will introduce incentives and initiatives in one area and for the Treasury to take not a blind bit of notice and send all the incentives somewhere completely different.
The previous Government used to talk about “joined-up government”, and indeed we made important progress towards achieving it, so that all the different parts of Government were pushing in the same direction towards the same goal. Here we have a case in which the Prime Minister, the Secretary of State for Communities and Local Government and the Mayor of London are on one side, and the Exchequer Secretary and his colleagues are on the other. I invite him to support what his right hon. and hon. Friends are saying, and not to stand aloof from the policies of the Government of whom he is a member. The Treasury should not be an island, cut off from everybody else and doing its own thing without talking to others or supporting what they are doing, but that seems to be the position with this Bill.
I invite the Exchequer Secretary to accept the amendment and agree that the incentive should be applied in places in which the Prime Minister has so clearly identified its importance.