Oral Answers to Questions

Debate between Lindsay Hoyle and Jesse Norman

Thursday 26th October 2023 Commons Chamber

[Jesse Norman]

I am grateful to the hon. Gentleman for raising the issue of HGVs. As he acknowledges, last week the Government announced the four winning projects of the £200 million zero-emission HGV and infrastructure competition, which will roll out 370 zero-emission HGVs and around 57 refuelling and electric charging sites. This is part of a much broader strategy, which is about developing different fuel alternatives. The technology continues to change very rapidly. We have already heard some fascinating news about the development of solid-state batteries, and the Government are tracking and following all these developments closely.

[Mr Speaker]

I call the SNP spokesperson.

Oral Answers to Questions

Debate between Lindsay Hoyle and Jesse Norman

Thursday 13th July 2023 Commons Chamber

[Jesse Norman]

We are respectful of decisions made locally by local authorities, but he is absolutely right that, as I said, we are seeking to promote choice. That approach does mean that where people want to use cars, they will be perfectly able to do so, and where they want to use active travel, with all its personal and environmental benefits, they can do that as well.

[Mr Speaker]

I call the shadow Minister.

[Gill Furniss (Sheffield, Brightside and Hillsborough) (Lab)]

One of the most effective ways to increase active travel uptake is to improve road safety, but progress in this area has stagnated: the last Labour Government cut road fatalities by almost 50%, compared with a mere 8% reduction under this Conservative Government. Back in 2021, Ministers promised a new road safety strategic framework, but two years and two Secretaries of State later all we have been told is that it will be published in due course. Meanwhile, countless people remain hesitant to embrace active travel due to safety concerns. Will the Minister move beyond the soundbites and provide some much needed clarity on when the strategy will finally see the light of day?

[Jesse Norman]

We take safety extremely seriously and have done a lot of work on this issue over the years. The whole point of having dedicated active travel infrastructure on the scale that it is being rolled out at the moment is to segregate and improve safety for those using active travel. I am sure that the hon. Lady will welcome the excellent work done on connected and autonomous vehicles, because they offer a potentially revolutionary improvement in safety over time.

[Mr Speaker]

I call the SNP spokesperson.

--- Later in debate ---

[Jesse Norman]

It appears that the right hon. Gentleman knows a lot more about this than I do. Any expansion of Heathrow is a matter for it, as he will know. If that is financed, it will be by private finance for what is a private sector project. The Department has no position on this matter, because at some point the Secretary of State may need to be invited to decide on any development consent order, so we do not take a view.

[Mr Speaker]

I call the shadow Secretary of State.

--- Later in debate ---

[Jesse Norman]

The hon. Gentleman will be aware that a very wide range of information about potential costs and budgets is already in the public domain from the Department across a very wide range of modes. On electric vehicles, we have just consulted on regulations on the zero-emission vehicle mandate, and £6 billion of new private investment is being scheduled on the basis of those projections. That will transform our charging infrastructure, and we should all welcome it.

[Mr Speaker]

I call the shadow Minister.

Oral Answers to Questions

Debate between Lindsay Hoyle and Jesse Norman

Thursday 8th June 2023 Commons Chamber

[Jesse Norman]

The hon. Lady is absolutely right that active travel—cycling, walking and wheeling—is probably the single biggest health intervention a human being can make in their lives as a choice of habit. She is right to highlight the importance of supporting it, as the Government have—more so than any previous Government. There are a range of pots, including city region sustainable transport settlements, the road investment strategy 2 and levelling-up fund moneys, into which authorities can bid. Many have done so and will continue to do so highly successfully. That provides a continuing opportunity for them to benefit from these levels of increased funding.

[Mr Speaker]

I call the shadow Minister.

--- Later in debate ---

[Jesse Norman]

Yes.

[Mr Speaker]

We now come to the SNP spokesperson.

Oral Answers to Questions

Debate between Lindsay Hoyle and Jesse Norman

Thursday 20th April 2023 Commons Chamber

[The Minister of State, Department for Transport (Jesse Norman)]

I thank my hon. Friend for that; he has been a great champion of this cause. I absolutely join him in praising Joe Skinner. Let me also praise Cameron Wood in my constituency, who has been equally hard-working in pressing the case for the improvement of disabled access. I know that my hon. Friend has already met the buses Minister, whom I know is keen to get up to Burnley—I would be very supportive of that.

[Mr Speaker]

I call the shadow Secretary of State.

--- Later in debate ---

[Mr Speaker]

Order. I must help Members from all parts of the House. Topical questions must be short and sweet—quick answers, quick questions. Minister, please show us an example.

[The Minister of State, Department for Transport (Jesse Norman)]

The Government are spending £3 billion on this area over the current spending period. Active Travel England is making an enormous difference to the quality of schemes throughout England. Significant amounts of money are going in through the levelling-up fund and through City Region Sustainable Transport Settlements and other schemes, so we believe that we are on track to meet our targets.

Oral Answers to Questions

Debate between Lindsay Hoyle and Jesse Norman

Thursday 2nd March 2023 Commons Chamber

[Mr Speaker]

Go on, Minister.

[The Minister of State, Department for Transport (Jesse Norman)]

Thank you, Mr Speaker. It is great to see you in such robust form this morning, if I may say so.

A technical consultation on the zero-emission vehicle mandate design’s features was held between April and June of last year. Responses to that consultation are currently being analysed, and the Government will publish their response, alongside a final consultation on the full regulatory proposal, and an accompanying cost-benefit analysis, in the near future.

--- Later in debate ---

[Jesse Norman]

As my right hon. Friend will be aware, the Government’s plan is for more than 300,000 charge points to be in place by then. That will be led largely by the private sector, and we meet regularly with all the charge point operators. Their plans are escalating and will be massively supported and benefited by the zero-emission vehicle mandate. With that, and technological advances, we anticipate that there will be ample opportunity for people in rural areas to use electric vehicles.

[Mr Speaker]

I call the shadow Minister.

[Gill Furniss (Sheffield, Brightside and Hillsborough) (Lab)]

Last year, UK car production slumped to a 66-year low. The covid pandemic, supply chain shortages, and chaos at Dover have left this key industry fighting for survival. Manufacturers are crying out for a shred of certainty, but far from supporting them and the 150,000 workers they employ, this Government are leaving them in a state of limbo. With less than a year to go before it takes effect, why is the Minister still keeping the design of the zero-emission vehicle mandate a well-guarded secret? When can manufacturers expect finally to get some clarity from the Government to allow them to plan for the future?

[Jesse Norman]

The hon. Lady wildly overstates the issue with regard to electric vehicles. In 2022, we had the second largest market across Europe for electric vehicles, which demonstrates the level of energy and support we are giving the industry, including £2 billion of public money. We consult closely with both large car manufacturers and small manufacturers, who have quite different interests in many different ways. They will be quite comfortable with this important mandate when it comes out, and they will be because we have consulted extensively on it with them over the past two years.

[Mr Speaker]

I call the SNP spokesperson.

--- Later in debate ---

[Jesse Norman]

The hon. Lady will be aware that there have been noise-related restrictions on major airports including Heathrow for many years and, more recently, noise maps and noise action plans at Heathrow. Of course, we recognise the seriousness of this issue. It is worth saying that technology is already making a significant difference—new aircraft models make 30% to 50% less noise on take-off and landing—but we intend to consult later this year on proposals for the next night-flight regime, beginning in October 2025.

[Mr Speaker]

I call the shadow Minister.

--- Later in debate ---

[Iain Stewart (Milton Keynes South) (Con)]

May I draw my right hon. Friend’s attention to the Transport Committee’s report published today on alternative fuels? One of our recommendations is to build on the work the Government have already done on SAF by introducing a contracts for difference model, which would help to make the UK a world leader in this technology.

[Jesse Norman]

I am grateful to my hon. Friend for his report and the work he is doing as the new Chair of the Transport Committee. We are aware of the calls for CfDs. He may have seen the report published by Philip New on this issue. We are already working on not merely the mandate but a clearing house to support testing and certification. Of course, we will continue to look at the question of CfDs, but the mandate and the work we are doing towards that remains the Government policy, and rightly so.

[Mr Speaker]

I call the SNP spokesperson.

Oral Answers to Questions

Debate between Lindsay Hoyle and Jesse Norman

Thursday 19th January 2023 Commons Chamber

[Jesse Norman]

I am grateful to the hon. Gentleman for raising the question. I myself have not recently spoken to the infrastructure board in Northern Ireland, but I shall make a point of doing so in the near future.

[Mr Speaker]

I call the shadow Minister.

Chinese Consul General: Manchester Protest

Debate between Lindsay Hoyle and Jesse Norman

Thursday 20th October 2022 Commons Chamber

[Jesse Norman]

I thank my right hon. Friend for his further remarks. We should be absolutely clear that participating in an assault, if that is what is determined to have happened, is completely outside the expectations of our rule of law. If such a thing had taken place in front of the British consulate in Shanghai—that question was raised in the House only two days ago—we would, of course, refer the matter to the local policing authorities, as we would have expected in this case. I take his point, which he makes very strongly.

My right hon. Friend is also right to insist, as he insisted during Tuesday’s urgent question, that the diplomatic channel and the legal channel are distinct. I have seen the footage he describes, and I think it looks very black and very damning, but we are going through a process and we need to make a factual determination. Once that is done, and if the situation is found to be as we fear—that is to say there has been a criminal offence of some kind—diplomatic consequences will follow.

[Mr Speaker]

We now come to the shadow Minister, Catherine West.

[Catherine West (Hornsey and Wood Green) (Lab)]

I thank the right hon. Member for Chingford and Woodford Green (Sir Iain Duncan Smith) for securing this urgent question, for yesterday’s interview with Mr Chan and for his work on this matter.

This is yet another complete failure by the Government. Instead of making a statement to this House, which would be the normal way of carrying on, Members have had to secure a second urgent question. What is more concerning is the outrageous admission of the Chinese consul general that he did, in fact, assault Hong Kong democracy protesters in Manchester, which he described as his duty.

The Government’s handling of this issue has been a complete mess. The Minister will know that Labour called for the Chinese ambassador to be summoned so that an explanation could be demanded, but a Foreign, Commonwealth and Development Office statement confirmed that, in a stunning abdication of the Government’s duties, a civil servant held the meeting with Minister Yang, rather than the Foreign Secretary or a responsible Minister. Although I have the upmost confidence in the abilities of FCDO officials to fulfil their responsibilities, there are moments in foreign policy when only an elected Minister will do. Sadly, it appears that what this chaotic Government have unleashed upon the country through their failed economic agenda is now hampering Ministers’ ability to stand up for the most basic rights we hold dear.

The Minister has the chance to send a clear message not only to the Chinese Government, but to the Government in Myanmar and any other country that might have a repressive regime and where refugees fear for their safety in this country. He will know that on 12 May, from this Dispatch Box, we challenged the Government to come forward with a comprehensive safety plan for Hong Kong nationals and others, so I have two questions. Will he meet those from the embassy without any delay to communicate the strong message from MPs about the importance of peaceful protest in this country? Is it the case that Greater Manchester police have not yet received the CCTV footage because the consul general is refusing to hand it over?

What will the Minister do to tackle this problem? Is it possible for him to expel the individual and then for that individual to apply to return? If it were that way round, we would at least know that the Government had taken the strongest action possible.

[Jesse Norman]

I thank the hon. Lady for her questions. She is right to pay tribute to my right hon. Friend the Member for Chingford and Woodford Green (Sir Iain Duncan Smith) for his interview with Mr Chan. It was an important moment and my right hon. Friend deserves congratulation from across this House on that. As for what the hon. Lady said, I do not think she can have listened to what I said, which is a pity. The ambassador is not in the UK and has not been since before the beginning of this week, so he is not available for any kind of diplomatic interaction. In any case, the chargé d’affaires is the appropriate person for this kind of exchange. The last time an ambassador was summonsed to a meeting with a Minister—indeed, the Foreign Minister —was following the Russian invasion of Ukraine. That gives a sense of the way in which the diplomatic niceties work out.

On CCTV and the Greater Manchester police, I cannot comment on that as it is a matter outside the purview of the Government. However, if the Chinese consulate is not giving up any CCTV that it has, I would certainly encourage it to do so.

[Mr Speaker]

I call the Chair of the Select Committee, Alicia Kearns.

[Alicia Kearns (Rutland and Melton) (Con)]

I welcome this urgent question from my right hon. Friend the Member for Chingford and Woodford Green. It is clear that the House is unhappy with the course that the Government have taken and I must challenge the Minister on some of the comments he has made this morning. It is not “apparent” involvement; there are no ifs or buts here. As my right hon. Friend the Member for Chingford and Woodford Green has said, the consul general has not only admitted that he is responsible, but praised his own role in these actions and said that he would do it again. It is a political decision to expel, not a policing one. Will the Minister therefore confirm that, as he suggested from the Dispatch Box just now, his preference is to prosecute these individuals and see them in British prisons? Secondly, what are the diplomatic consequences that he references? Are they expulsion? We need plain speaking at this time. The House is clearly united in its position and I urge the Government to listen to it.

[Jesse Norman]

I thank the Chairman of the Select Committee for that. She has made clear her view that a crime was committed, and that is the view that many others have taken, but it is not a determination of fact at the level we would need. She may have missed the portion of what I said earlier to my right hon. Friend the Member for Chingford and Woodford Green about the fact that we recognise that the diplomatic channel and the legal are separate, but they are not separate as regards a determination of fact. Those are the proper grounds for us to make a determination as a Government. As regards the political desire, we will be looking at the fact situation as it is brought forward and at the options. She may have missed this too, but I said that I would expect there to be an update to the House next week, as further events play themselves out. We will make a judgment in due course on that basis.

[Mr Speaker]

I call the SNP spokesperson.

Chinese Consulate: Attack on Hong Kong Protesters

Debate between Lindsay Hoyle and Jesse Norman

Tuesday 18th October 2022 Commons Chamber

[Jesse Norman]

I thank my hon. Friend for her question. On the point of the summons, my understanding is that the chargé d’affaires will meet with officials this afternoon, there having already been an informal exchange of concern between the two sides. My hon. Friend will know that, precisely because of the belief in this House in the rule of law, it is up to our independent police and Crown Prosecution Service to decide first on the facts of the matter and then on whether a prosecution should be brought. But, like her, I witnessed what took place in the video on Sunday and I am sure every Member of this House feels the same level of concern as she does.

[Mr Speaker]

I call the shadow Minister, Catherine West.

--- Later in debate ---

[Jesse Norman]

I thank my right hon. Friend for his question. I do not think that there is any suggestion of dancing away. My hon. Friend the Member for Rutland and Melton, in her position as the recently elected Chair, put the question. We respect that, and we worked with the Speaker’s Office and with her to answer it. That is exactly what we are doing now, and rightly so.

As to my right hon. Friend’s question, it is of course a question of law as to what offences were committed on British soil, and it is absolutely right to have a legal procedure that goes through that and examines the question in all its aspects. As to summoning the ambassador, I thank my right hon. Friend for his input. We have already outlined the process of raising the matter formally with the Chinese embassy, and we will see where the legal and prosecutorial procedures may lead. At that point, we will take further action.

[Mr Speaker]

I call the SNP spokesperson.

--- Later in debate ---

[Mr Speaker]

There we are—I call the Minister.

[Jesse Norman]

It is absolutely right to highlight the change in the position that China has taken over the past seven years. I do not think there is any doubt that it has changed, and we have had to evolve and change our response to that. The hon. Member is also right to talk about the importance of resolute action. However, this is in the context of the kind of constructive, multi-layered relationship that my hon. Friend the Member for Salisbury (John Glen) mentioned. We therefore have to try all the measures in our power to retain a respect for the rules-based order, not just in this country, but around the world with our allies, and we are doing that.

Oral Answers to Questions

Debate between Lindsay Hoyle and Jesse Norman

Tuesday 7th September 2021 Commons Chamber

[Mr Speaker]

I call the Minister.

[The Financial Secretary to the Treasury (Jesse Norman)]

Good morning to you, Mr Speaker. It is great to be in a Chamber that is 100% full strength after so many months. If I may make a personal note without undue deference, Mr Speaker, I will say that I thoroughly appreciated your remarks about standards within the Chamber.

To date, Her Majesty’s Revenue and Customs has not initiated insolvency proceedings against any taxpayer for a loan charge debt. No estimate can be provided for the number of people who have fallen into debt or who have been declared bankrupt and are subject to the loan charge because, where debts arise, HMRC is not always the only creditor. Some individuals are declared bankrupt as a result of a non-HMRC debt and some may choose to enter insolvency themselves based on their overall financial position.

Oral Answers to Questions

Debate between Lindsay Hoyle and Jesse Norman

Tuesday 22nd June 2021 Commons Chamber

[Jesse Norman]

I congratulate Elddis, and I congratulate my hon. Friend on giving Elddis profile, on fighting the campaign that he has, and on the outcome and its very successful results in this case. I have it on very good authority that the Chancellor would be delighted to visit Elddis, so I am in a position to make a binding commitment from the Government side, and I am sure that he looks forward to it very much.

[Mr Speaker]

I am now suspending the House for three minutes to enable the necessary arrangements for the next business.

Oral Answers to Questions

Debate between Lindsay Hoyle and Jesse Norman

Tuesday 27th April 2021 Commons Chamber

[Jesse Norman]

My hon. Friend is absolutely right. I salute the people of Carlton and I rejoice in the businesses of Mapperley. I encourage businesses across the constituency of Gedling to take advantage of the Government’s unprecedented package of support, including the £5 billion-worth of grant support that the Chancellor announced at Budget, which is providing a lifeline for businesses as they relaunch their trading safely.

[Mr Speaker]

I am now suspending the House for three minutes to enable the necessary arrangements to be made for the next business.

Exiting the European Union (Value Added Tax)

Debate between Lindsay Hoyle and Jesse Norman

Wednesday 3rd February 2021 Commons Chamber

[The Financial Secretary to the Treasury (Jesse Norman)]

I beg to move,

That the Value Added Tax (Miscellaneous Amendments to Acts of Parliament) (EU Exit) Regulations 2020 (S.I., 2020, No. 1312), dated 18 November 2020, a copy of which was laid before this House on 19 November, be approved.

[Mr Speaker]

With this we will take the following motion:

That the Value Added Tax (Miscellaneous Amendments to the Value Added Tax Act 1994 and Revocation) (EU Exit) Regulations 2020 (S.I., 2020, No. 1544), dated 18 December 2020, a copy of which was laid before this House on 21 December, be approved.

[Jesse Norman]

These two statutory instruments are part of a package of measures connected to the UK’s exit from the EU. They make a number of consequential and necessary changes in order to ensure that the VAT system continued and continues to operate, as required, following the end of the transition period. They have been designed to ensure fairness, to protect against double taxation and avoidance, and to make certain that existing reliefs continue to apply following the UK’s departure from the EU. Both instruments took effect at the end of the transition period.

The Value Added Tax (Miscellaneous Amendments to Acts of Parliament) (EU Exit) Regulations 2020 make three changes to the VAT Act 1994 and one change to the Taxation (Cross-border Trade) Act 2018. The first change applies to the VAT treatment of aircraft handling services. Until the end of the transition period, the VAT Act included a VAT zero rate for handling services supplied to aircraft operating on international routes. These included landing and housing fees, security and fire services. This zero-rate band also applied to the handling and storage of goods carried in those aircraft, but only at a customs and excise airport. However, suppliers could previously rely on EU legislation to zero-rate their services at non-customs and excise airports. This instrument therefore provides for the continued application of the relief in UK legislation following the end of the transition period.

Secondly, this instrument includes a new VAT zero rate for the handling services supplied to international trains. These include network track access, shunting and storage, station and guard services, light maintenance services and the handling and storage of goods carried on the trains. The measure aligns the VAT treatment of international trains with that of qualifying ships and aircraft. For ships and aircraft, services for which the zero rate applies can be carried out only at a port or airport, but for international trains these services could be supplied at various other sites along a rail route. The instrument therefore provides a power for the Revenue and Customs commissioners to specify those sites in a notice. That will ensure that the relief applies appropriately to trains.

Thirdly, the instrument makes a change that allows those supplying pension fund management services to funds established in the EU to recover the VAT that they incur.

Finally, the instrument removes a change made in the Taxation (Cross-border Trade) Act 2018 to the VAT treatment of certain travel services. The change is no longer necessary because the subsequent Value Added Tax (Tour Operators) (Amendment) (EU Exit) Regulations 2019 included a revision of the VAT treatment of such services.

Let me turn to the second instrument to be debated: the Value Added Tax (Miscellaneous Amendments to the Value Added Tax Act 1994 and Revocation) (EU Exit) Regulations 2020. This legislation includes four changes to the Value Added Tax Act 1994 and the revocation of an instrument laid in 2019 in connection with EU exit.

First, the legislation makes changes to the DIY house builders’ scheme to place self-builders in Northern Ireland in the same position as those in Great Britain. The DIY house builders’ scheme allows people who construct their own dwellings—a relevant residential or charitable building—or make a residential conversion to claim back the VAT on certain building materials, including VAT incurred on imports. Under the Northern Ireland protocol, materials bought by self-builders in Northern Ireland from suppliers in an EU member state may be subject to VAT in Northern Ireland. The instrument ensures that a DIY house builder in Northern Ireland can recover VAT charged on materials bought from a supplier in an EU member state.

Secondly, the instrument allows HMRC to obtain information in relation to VAT owed by businesses and individuals in member states. Similar legislation applied to the whole of the UK until the end of the transition period, reflecting the requirement for mutual co-operation between member states in connection with VAT. The retention of the legislation, particularly in respect of Northern Ireland, is a requirement of the withdrawal agreement.

Thirdly, the instrument contains measures to prevent unscrupulous businesses from avoiding import VAT. Under the Government’s commitment to unfettered access, goods in free circulation in Northern Ireland that are moved to Great Britain are relieved from duty and VAT on entry. However, UK customs legislation contains a provision to remove the duty relief if it is found that goods have been routed from an EU member state via Northern Ireland to Great Britain in order to avoid import duty. The instrument ensures that, if the customs provision is triggered, the VAT relief will no longer apply as well. It also prevents double taxation for businesses that make exempt supplies and move goods from Great Britain to Northern Ireland.

Finally, the instrument revokes the Finance Act 2011, Schedule 23 (Data-gathering Powers) (Amendment) (EU Exit) Regulations 2019, which were laid in the event of a no-deal scenario and are therefore no longer required.

The instruments provide a number of significant and necessary changes to ensure that the VAT system continues to operate as required following the end of the transition period. They will ensure fairness, protect against double taxation and avoidance, and make certain that existing reliefs continue to apply. I hope colleagues will join me in supporting this legislation, which I commend to the House.

Oral Answers to Questions

Debate between Lindsay Hoyle and Jesse Norman

Tuesday 26th January 2021 Commons Chamber

[Mr Speaker]

Did you get any of that, Minister Norman?

[Jesse Norman]

indicated assent.

[Mr Speaker]

If you can get something out of it, please do.

[Jesse Norman]

If I may just say, the hon. Gentleman is wrong. We are not talking about a claim that is not validated by third parties; it is understood internationally that the scheme is one of the most generous in the world. He will be aware that the issue is subject to legal challenge, which limits what I can say, but I can tell him that the Government are well aware that some self-employed people found that their eligibility for the scheme was affected if they had taken time out of their trade in 2018-19, which is why, in June last year, the scheme’s eligibility criteria were revised to ensure that people in that situation were able to claim self-employment income support.

Oral Answers to Questions

Debate between Lindsay Hoyle and Jesse Norman

Tuesday 1st December 2020 Commons Chamber

[Jesse Norman]

My right hon. Friend is absolutely right to focus on testing. As he will be aware, the “test to release” regime combines a much shorter self-isolation period with a real focus on public health. As he will also know from the global travel taskforce report, we as a country are continuing to explore pre-departure testing with partner countries on a bilateral basis, including different models by which that might be delivered.

[Mr Speaker]

Question 15 is withdrawn, so we have a substantive question to the Chancellor.

Oral Answers to Questions

Debate between Lindsay Hoyle and Jesse Norman

Tuesday 20th October 2020 Commons Chamber

[Jesse Norman]

[Mr Speaker]

--- Later in debate ---

[Jesse Norman]

[Mr Speaker]

Economic Outlook and Furlough Scheme Changes

Debate between Lindsay Hoyle and Jesse Norman

Tuesday 16th June 2020 Commons Chamber

[Jesse Norman]

I am very grateful to my right hon. Friend the Chairman of the Treasury Committee both for what he says today and for his report. He will know, and he took considerable evidence on, the constraints that the Government were under in bringing the different schemes into play. I am the last person to decry the energy and the effectiveness either of the businesses that have been supported by the job retention scheme or the self-employed people and businesses that have been supported by the self-employed scheme. Of course, we will take very carefully into consideration the report that he gives, and any positive and constructive suggestions that are contained in that report about how we can improve matters, and we continue to review the situation within the Treasury.

[Mr Speaker]

We now come to the SNP spokesperson, Alison Thewliss, with one minute.

--- Later in debate ---

[Sir Graham Brady (Altrincham and Sale West) (Con)]

As businesses get back to work, there is a cap on the number of employees who can be furloughed. Would it not make more sense to cap the number of hours or the total cost to the Treasury for each firm instead?

[Jesse Norman]

I thank my hon. Friend for his question. Let me reflect upon it.

[Mr Speaker]

We will try again with Jamie Stone.

--- Later in debate ---

[Jesse Norman]

Tech hubs in Sevenoaks are my regular reflection; I thank my hon. Friend very much for her question. Of course, she is absolutely right. As we think about a more sustainable, greener and more productive economy, we need to be thinking about how our whole industrial strategy and posture will change, and I have no doubt that it will involve continued investment and support for technology in all its manifestations across the UK.

[Mr Speaker]

In order to allow the safe exit of hon. Members participating in this item of business and the safe arrival of those participating in the next, I will now suspend the House for five minutes.

Finance Bill

Debate between Lindsay Hoyle and Jesse Norman

2nd reading & 2nd reading: House of Commons & Programme motion & Programme motion: House of Commons & Ways and Means resolution
Monday 27th April 2020 Commons Chamber

[The Financial Secretary to the Treasury (Jesse Norman)]

I beg to move, That the Bill be now read a Second time.

I congratulate the new shadow Chancellor and her shadow Treasury team on their appointments. Six weeks ago, on 11 March, this House assembled to hear my right hon. Friend the Chancellor deliver his Budget speech. How long ago that seems now when every day feels like a decade. A Budget statement is a central part of our democracy; indeed, it is at the very heart of a parliamentary tradition of accountability for taxation that goes back to the 13th century. It is deeply sobering to reflect that that 11 March moment might be the last great parliamentary occasion we have in this Chamber for some time to come.

Truly, we know better now. We live in a disenchanted world, a world of self-isolation, of social distancing, of shielding, of lockdown. In the Treasury and across Government as a whole we have worked around the clock since then to respond to the extraordinary challenges posed by the coronavirus to people’s lives and livelihoods. The same has been true in this Palace of Westminster. I know that I speak for all my colleagues in saying that I have the greatest respect for the work that you, Mr Speaker, and so many others, including parliamentarians across this House, have done to prevent covid-19 from becoming a threat to our democracy itself. I pay special tribute to all the Clerks and staff of this House of Commons and of the Palace of Westminster for working so quickly and creatively to adapt to this new reality and for their skill in drawing on the flexibility and resilience of our uncodified constitution to create a virtual Parliament.

When this Chamber was bombed and destroyed on the night of Saturday 10 May 1941, with the fires raging, the roof fallen in and the Lobbies and corridors gutted, it was decided that the Commons should sit immediately in Church House. Extraordinary measures were undertaken at great speed to transfer proceedings to the new location. The Commons rarely sat on Mondays, so it duly reconvened in the normal way on Tuesday 13 May, but it did so in Church House. There were oral questions to the Secretary of State for War, including on officers’ outfits and the collection of swill and vegetable waste from military units, followed by a full Order Paper of business and, at the end, a short statement from the Prime Minister in which he reported that the old Chamber was damaged beyond immediate repair and that preparations were already under way for a move to a further location, if that should be necessary. Thus the biggest and the worst raid of the blitz resulted in the loss of not one single day—indeed, not one single minute—of sitting time for Parliament. It is a moment of which this country can be intensely proud.

Why so much determination and so much speed? It was so that, as Churchill said:

“hon. Members may be reassured that the work of our Parliamentary institutions will not be interrupted by enemy action”.—[Official Report, 13 May 1941; Vol. 371, c. 1086.]

It was so British democracy should not be thought to have been destroyed amid the burning ruins of the Commons Chamber, and so that the great thread of public scrutiny and parliamentary accountability that gives legitimacy and authority to our Government should not be broken. So it is again today, Mr Speaker. For that, we are, and we will always be, profoundly grateful. I hope that we shall soon return to the close combat of political business, whether that be the intimate interrogation of the Chamber, the camaraderie of the Lobbies or the noise and clamour of a full House packed to the rafters with MPs, press and public looking on, all fully intent on our national political business; the House of Commons as the cockpit of the nation.

Here again, history can be our guide. When the Chamber was rebuilt, special care was taken to make it, as it had been, too small for the number of Members. That was at the specific insistence of Churchill. In his words, the essence of good House of Commons speaking is the “conversational style”. This requires a

“fairly small space, and there should be on great occasions a sense of crowd and urgency…a sense that great matters are being decided, there and then, by the House”.

Not for Churchill the vast, empty hall of Deputies, the amphitheatre, or what he called “Harangues from a rostrum”. Without that collective sense of crowd and urgency and the ever-shifting energy of the House in action, we lose something vital.

Mr Speaker, I ask you this: can we not also gain from this great virtual experiment? Through new forms of questioning and calmer, more dispassionate cross-examination of Government, may we not find glimmers of new possibility amid the present gloom? I believe that we can. The significance of today’s debate lies not just in this Finance Bill, important though it is; it marks a new legislative beginning for Parliament. As we go forward together, I hope that we in this House can restore not merely our old ways, but what was best in them, and use this moment to add, to develop, to reform and to make them better still.

When my right hon. Friend the Chancellor addressed the House on 11 March, he announced a Budget focused on delivering the Government’s manifesto commitments from the general election last year. He did not only that; he also set out and carefully explained the reasons for a very ambitious and wide-ranging set of measures designed to tackle the coronavirus head-on, to buttress our frontline services and to support people, families and businesses affected by the pandemic.

Since then the Government have gone much further still. Indeed, we have announced what we believe to be the most comprehensive and far-reaching economic response to covid-19 in the developed world, and Ministers and public servants across Government have worked to deliver it. Among its many different packages, that response includes a job retention scheme, which guarantees 80% of the wages of furloughed workers, and which has been conceived, developed and launched by Her Majesty’s Revenue and Customs in just a few weeks.

Alongside the job retention scheme is a similarly generous scheme aimed at supporting the self-employed for 80% of taxable trading profits up to £50,000. This covers some 95% of those who are mainly self-employed, including cleaners, taxi drivers, plumbers, musicians, journalists, electricians, childminders and many others. Businesses can also benefit from more than £300 billion-worth of Government-backed loans, numerous tax cuts and grants, with a business rates holiday for the worst-affected sectors of the economy. There has also been a further package of measures aimed at the charitable sector.

These are unprecedented measures for unprecedented times. The impact of the coronavirus falls not only on businesses, but directly on the well-being of some of the most vulnerable people in our society, whom the Government are determined to protect. For that reason, the Government have raised by £1,000 the universal credit standard allowance and working tax credit basic element for a year. Almost a billion pounds has been allocated so that the local housing allowance can cover at least 30% of market rent, and the Government have offered vouchers or meals at home for children who would otherwise be eligible for free school meals.

This Bill goes beyond the immediate response to covid-19 by delivering the Government’s manifesto commitment to make the tax system fairer and more proportionate. For example, care leavers who start apprenticeships will pay no income tax on bursary payments that they receive. I am delighted to say to recipients of payments under the Windrush compensation scheme and the troubles permanent disablement payment scheme that those payments will be exempt from income, inheritance and capital gains tax, and inheritance tax will not be collected on Kindertransport fund payments.

Taxes are rarely popular or straightforward, but they are necessary to support our public services. Now, more than ever, the Government have a duty to ensure that the rules are applied correctly. Last month, my right hon. Friend the Chief Secretary to the Treasury announced that, in the light of covid-19, the Government will delay the introduction of reforms to the off-payroll working rules in order to give businesses more time to adapt. However, he was clear that the Government remain fully committed to introducing these reforms to ensure that people working like employees but through their own limited companies pay broadly the same tax as individuals who are employed directly. That has not changed, and the Government will introduce an amendment to the Bill in due course to legislate for a new commencement date of 6 April 2021. The Government will use the additional time to commission further external research into the long-term effects of the reforms in the public sector, with the intention that that research will be available before the reforms come into effect in the private sector in April 2021.

Meanwhile, this Bill implements the recommendations of Sir Amyas Morse’s independent review of the loan charge. It will mean that the loan charge no longer applies to loans entered into before 9 December 2010, which is the point at which Sir Amyas found that the law put beyond doubt the fact that disguised remuneration schemes were a form of tax avoidance. The Bill also brings forward legislation to repay taxpayers who voluntarily settled for years that are no longer in scope, while those still able to pay will be able to spread their loan balance over three tax years to suit their finances.

The Budget also included changes to help businesses to prosper for years to come. This Bill will implement the Government’s manifesto commitment to increase the research and development expenditure credit rates from 12% to 13% in order to help drive growth and productivity across the UK, and to continue to support this country’s proud history of innovation. It also raises the structures and buildings allowance rate from 2% to 3%, which should help to stimulate long-term capital investment in the United Kingdom by strengthening the business case for investment in shops, factories and agricultural buildings. Those changes apply nationwide, underlining the fact that, even in these times of uncertainty, the Government are seeking to level up investment and opportunity right across the whole United Kingdom.

The Government have made successive cuts to the rate of corporation tax since 2010 and we now have the lowest headline rate in the G20. That has helped to create a corporate tax system that supports British businesses, boosts economic growth and strengthens the UK’s pull for inward investment.

However, the extra benefits of lowering corporation tax rates still further must be balanced against other objectives, such as funding the NHS and the public services on which we all rely. That is why the Chancellor announced that the Government will not cut the corporation tax rate further this year, but instead will maintain it at 19%, in line with their manifesto commitment.

Likewise, while the Government are committed to encouraging entrepreneurial activity, the evidence indicates that entrepreneurs’ relief in its current form is neither effective in stimulating new business growth nor good value for money. By reducing the lifetime limit from £10 million to £1 million, we are returning the relief to its original purpose while continuing to promote and reward enterprise.

Finally, following an extensive period of consultation, the Bill will implement the digital services tax. Digital businesses providing search engines, social media platforms and online marketplaces derive significant value from their UK users, but current international corporate tax rules mean that that value is not reflected in the level of UK tax they pay. Setting a tax on revenues from those digital services at a rate of 2% will make the system fairer and should raise up to £2 billion over the next five years, but the Government’s ultimate goal is to secure a long-term global solution. We are working with international partners through the Organisation for Economic Co-operation and Development to agree a way forward.

Covid-19 is the most pressing challenge for the country—and, indeed, the world—at the moment, but it is by no means the only one. Notwithstanding our intense focus on tackling the pandemic, the Government have not lost sight of longer-term public concerns, notably the need for the UK to move to a greener and more sustainable economy in the years ahead. Now that we have left the European Union and as we prepare to leave the EU emissions trading system, this Bill introduces legislation for both a charging power to create a UK emissions trading system, and a carbon emissions tax.

This twin-track approach is designed to ensure that, whatever the circumstances, the UK will have an effective carbon pricing regime in place. In the Budget, the Chancellor also revealed key elements of the plastic packaging tax, which should significantly increase the use of recycled materials in packaging. This Bill allows preparatory spending ahead of its introduction.

The Bill will also encourage the uptake of zero-emission vehicles by removing them from the vehicle excise duty expensive car supplement, which will mean that employers and employees pay no tax on zero-emission company cars in 2020-21. The United Kingdom has led the world in introducing legally binding carbon emissions reduction targets; these measures underline once again how serious the Government are about meeting those targets.

My right hon. Friend the Prime Minister has made it quite clear that we will do what it takes to support our public services and key workers as they respond to this pandemic, and to safeguard jobs and businesses so that our economy can bounce back as quickly as possible. Yet we must also look to the future. The advent of a virtual Parliament is a chance to chart new territory, and this Bill is a first step on that journey.

The Bill also redeems the manifesto promises of the last election. It points the way to a fairer tax system and a greener and more sustainable future. With the support of Members from across the House, and as we look beyond lockdown, it gives us all an opportunity to cement the United Kingdom’s place as one of the most innovative, exciting and enterprising nations in the world. For all those reasons, I commend this Bill to the House.

[Mr Speaker]

I call Anneliese Dodds, who is asked to speak for no more than 15 minutes.

Oral Answers to Questions

Debate between Lindsay Hoyle and Jesse Norman

Tuesday 24th March 2020 Commons Chamber

[Mr Speaker]

Order. I think the hon. Gentleman ought not to take advantage. We are just starting. I think he has got the message.

[Jesse Norman]

I speak for all my colleagues in saying how grateful I am to my hon. Friend for his kind regards and wishes. Of course, all taxes are taken into account and monitored by the Treasury, and will be subject to consideration at future fiscal events. We are living through very unusual times. I hope my hon. Friend understands that the high street, which was under pressure years before the current outbreak, is something we have supported over a period of time, most recently with a comprehensive package of support. He will be aware of the specific measures we have taken to support eligible retail, hospitality and leisure properties.