Finance (No. 3) Bill

Debate between Lindsay Hoyle and Kirsty Blackman

Committee: 1st sitting: House of Commons
Monday 19th November 2018 Commons Chamber

[Kirsty Blackman (Aberdeen North) (SNP)]

I beg to move amendment 6, page 2, line 24, leave out subsection (4).

This amendment would take out provisions removing the legal link between the personal allowance and the national minimum wage.

[The Chairman of Ways and Means (Sir Lindsay Hoyle)]

With this it will be convenient to discuss the following:

Clauses 5 and 6 stand part.

Clauses 8 to 10 stand part.

Clause 38 stand part.

That schedule 15 be the Fifteenth schedule to the Bill.

Clauses 39 to 42 stand part.

New clause 1—Additional rate threshold and supplementary rate—

“The Chancellor of the Exchequer must, no later than 5 April 2019, lay before the House of Commons a distributional analysis of—

(a) the effect of reducing the threshold for the additional rate to £80,000, and

(b) the effect of introducing a supplementary rate of income tax, charged at a rate of 50%, above a threshold of £125,000.”

New clause 2—Impact of provisions of section 5 on child poverty and equality—

“(1) The Chancellor of the Exchequer must review the impact of the provisions of section 5 and lay a report of that review before the House of Commons within six months of the passing of this Act.

(2) A review under this section must consider the impact of the changes made by section 5 on—

(a) households at different levels of income,

(b) people with protected characteristics (within the meaning of the Equality Act 2010),

(c) the Treasury’s compliance with the public sector equality duty under section 149 of the Equality Act 2010,

(d) different parts of the United Kingdom and different regions of England, and

(e) levels of relative and absolute child poverty in the United Kingdom.

(3) In this section—

‘parts of the United Kingdom’ means—

(a) England,

(b) Scotland,

(c) Wales, and

(d) Northern Ireland;

‘regions of England’ has the same meaning as that used by the Office for National Statistics.”

New clause 3—Review of the effectiveness of entrepreneurs’ relief—

“(1) Within twelve months of the passing of this Act, the Chancellor of the Exchequer must review the effectiveness of the changes made to entrepreneurs’ relief by Schedule 15, against the stated policy aims of that relief.

(2) A review under this section must consider—

(a) the overall number of entrepreneurs in the UK,

(b) the annual cost of entrepreneurs’ relief,

(c) the annual number of claimants per year,

(d) the average cost of relief paid per claim, and

(e) the impact on productivity in the UK economy.”

New clause 7—Review of changes to entrepreneurs’ relief—

“(1) The Chancellor of the Exchequer must review the impact on investment in parts of the United Kingdom and regions of England of the changes made to entrepreneur’s relief by Schedule 15 to this Act and lay a report of that review before the House of Commons within six months of the passing of this Act.

(2) A review under this section must consider—

(a) the effects of the provisions on business investment,

(b) the effects of the provisions on employment, and

(c) the effects of the provisions on productivity.

(3) In this section—

‘parts of the United Kingdom’ means—

(a) England,

(b) Scotland,

(c) Wales, and

(d) Northern Ireland;

‘regions of England’ has the same meaning as that used by the Office for National Statistics.”

This new clause would require a review of the impact on investment of the changes made to entrepreneurs’ relief which extend the minimum qualifying period from 12 months to 2 years.

New clause 8—Review of geographical effects of provisions of section 9—

“The Chancellor of the Exchequer must review the differential geographical effects of the changes made by section 9 and lay a report of that review before the House of Commons within six months of the passing of this Act.”

This new clause would require a geographical impact assessment of income tax exemptions relating to private use of an emergency vehicle.

New clause 9—Report on consultation on certain provisions of this Act—

“(1) No later than two months after the passing of this Act, the Chancellor of the Exchequer must lay before the House of Commons a report on the consultation undertaken on the provisions in subsection (2).

(2) Those provisions are—

(a) section 5,

(b) section 6,

(c) section 8,

(d) section 9,

(e) section 10,

(f) Schedule 15,

(g) section 39

(h) section 40,

(i) section 41, and

(j) section 42.

(3) A report under this section must specify in respect of each provision listed in subsection (2)—

(a) whether a version of the provision was published in draft,

(b) if so, whether changes were made as a result of consultation on the draft, and

(c) if not, the reasons why the provision was not published in draft and any consultation which took place on the proposed provision in the absence of such a draft.”

This new clause would require a report on the consultation undertaken on certain provisions of this Act – alongside new clauses 11, 13 and 15.

New clause 18—Review of public health and poverty effects of Basic Rate Limit and Personal Allowance—

“(1) The Chancellor of the Exchequer must review the public health and poverty effects of the provisions of section 5 to this Act and lay a report of that review before the House of Commons within six months of the passing of this Act.

(2) A review under this section must consider—

(a) the effects of those provisions on the levels of relative and absolute poverty in the UK,

(b) the effects of those provisions on life expectancy and healthy life expectancy in the UK, and

(c) the implications for the public finances of the public health effects of those provisions.”

New clause 19—Personal allowance—

“The Chancellor of the Exchequer must, no later than 5 April 2019, lay before the House of Commons an analysis of the distributional and other effects of a personal allowance in 2019-20 of £12,750.”

This new clause would require a distributional analysis of the effect of increasing the personal allowance to £12,750.

[Kirsty Blackman]

What a pleasure it is, Mr Deputy Speaker, to speak first in this debate. I very much appreciate the way the selection has worked out in my favour today. I rise to speak to amendment 6 and new clauses 7, 8, 9 and 19 in my name and the names of my SNP colleagues. For the avoidance of doubt, should the Opposition press new clause 1, new clause 3, or new clause 18, we will support them.

As I am sure that you, Mr Deputy Speaker, and those on the Treasury Bench will be unsurprised to hear, I would like to start by raising my concerns about the process. It is the case that the personal allowance is reserved while matters relating to the upper limit of basic rate taxation are devolved. I therefore have issues with the way that clause 5 is constructed. I request, as I did on Second Reading, that in future years these two sections of the Finance Bill are split and considered separately. I hope that the Minister and officials will take that on board in drafting future Finance Bills. It would make the debate cleaner and easier to follow for MPs and for those outside the House. As I have said previously, there are real issues with the way that the House scrutinises both tax and spending measures, and this would be a simple change that would ensure that better scrutiny could be brought to bear on these matters.

Amendment 6 would take out provisions removing the legal link between the personal allowance and the national minimum wage. The legal link between the two was put in place to kick in in years where the personal allowance was below £12,500. I have two concerns with the removal of this link. First, we have no guarantee that the personal allowance will not in future be reduced to less than £12,500, because this House cannot bind a future House of Commons and a future Government might decide to reduce, rather than increase, the personal allowance.

Petitions

Debate between Lindsay Hoyle and Kirsty Blackman

Wednesday 14th November 2018 Commons Chamber

[Kirsty Blackman (Aberdeen North) (SNP)]

On a point of order, Mr Deputy Speaker. The point has been made that there are huge concerns about the Prime Minister going to the press in advance of coming to this House, as is right and proper; Prime Ministers should come to this House to make any announcements after Cabinet. In 1971, when the UK debated joining the European Economic Community, the House was allowed to run for an additional nine hours through the course of the evening after the moment of interruption at 10 pm, in order for the proper debate to take place. It was important then for the House to be allowed to have that additional time, because it was really important for the people to see that the debate was taking place.

Mr Deputy Speaker, I understand that it is your role and the role of Mr Speaker to protect the reputation of this House, and to ensure that the people out there are not laughing at us and are not concerned that the procedures of this House are stifling debate. Will you please let me know that you have considered this today?

[Mr Deputy Speaker (Sir Lindsay Hoyle)]

There is a lot of sympathy in the House for the hon. Lady’s point. I am sure that the Prime Minister would want to come to the House when there is something to say. The hon. Lady mentioned the year that the House was debating Britain going into Europe, but on that occasion it was already tabled that the House would sit later; nothing has been tabled today. Like everyone else, I am bound by the rules of the House and it is Members who vote on the rules of the House. All I can do is work with the rules as they are. I cannot create new rules, no matter how important the situation. The hon. Lady’s point has been taken on board and I am sure that people have listened. It is something to bear in mind for the future.

Finance (No. 3) Bill

Debate between Lindsay Hoyle and Kirsty Blackman

2nd reading: House of Commons & Programme motion: House of Commons
Monday 12th November 2018 Commons Chamber

[Mr Deputy Speaker (Sir Lindsay Hoyle)]

Order. Mr Graham, you have been here long enough to know that we have short interventions; you do not need me to tell you that. If you want to speak, I will put you on the list, but we must have short interventions.

[Kirsty Blackman]

I should say that I am not from the Labour party. The Government’s reasoning for the delay is what concerns me, especially when it is completely the opposite of the reasoning they are using about Brexit, where they are saying, “It’s fine. Everybody has heaps of time to prepare—loads of time.”

I thank the Government for the changes to transferable tax history. They have worked very well with the industry to ensure that late-life oil and gas assets can be exploited for longer. I first raised this issue in March 2016, so I am very glad that the Government are now moving on it. However, this is not the whole picture. It is appreciated that this change has been made, as it will have a small but positive effect. I am pleased that this measure has come through, but we still have not seen the oil and gas sector deal, nor have we seen proper unequivocal support for carbon capture and storage. I want the Government to make louder noises about carbon capture and storage, and they need to after pulling the rug from under the feet of the industry three years ago. They need to be even louder and more vociferous in their support because the industry has been stung. The companies that were keen to take part in carbon capture and storage have been stung by the decisions of the previous Chancellor, so the Government need to be as clear as possible about support for carbon capture, utilisation and storage, which is a real industry for the future.

Finance (No. 2) Bill

Debate between Lindsay Hoyle and Kirsty Blackman

3rd reading: House of Commons & Report stage: House of Commons
Wednesday 21st February 2018 Commons Chamber

[Mr Deputy Speaker (Sir Lindsay Hoyle)]

Order. Time is short, and Members should not be taking advantage. I want to get the leader of the hon. Lady’s party in, but I will not be able to if we have interventions that are speeches.

[Kirsty Blackman]

I am actually going to talk about why we should be given the rebate and why what happened makes sense.

Scotland’s police and fire departments have been paying an annual charge of about £35 million a year in VAT, and we have repeatedly asked for those services to be excluded. The SNP has asked for it 140 times, and several other people have asked for it, too, and we have been given so many excuses why it could not be done. Murdo Fraser said that there was

“no justification for a VAT refund.”—[Scottish Parliament Official Report, 31 October 2017; c. 77.]

The Chancellor himself said that they would not be able to recover the VAT under EU law. However, the fair thing for the Government to do has always been to give police and fire services access to the VAT rebate. Highways England and the London Legacy Development Corporation have access to the rebate, and both are national organisations. Now, suddenly, the welcome decision has been taken to give us the rebate, but nothing has changed to cause that to happen. The situation is no different from what it was three years ago. The police and fire services are structured exactly the same as they were three years ago, yet somehow the Government have decided that we are now eligible for the rebate when previously we were not.