New Wealth Taxes

Debate between Lucy Frazer and Ian Lavery

Tuesday 14th June 2022 Westminster Hall

[Lucy Frazer]

The hon. Gentleman makes an important point. This matter needs international action, and he will know that international action is being taken. More than 130 countries signed up to a new international corporate tax framework in October 2021. That will help to ensure that multinational businesses pay their fair share, with the right companies paying the right amount of tax in the right place.

The hon. Member for Leeds East talked about capital gains tax. We recognise the importance of preserving the incentive for individuals to invest in this country and grow the economy, when they can choose to spend money in any jurisdiction. Having said that, we also recognise the importance of ensuring that a fair amount of tax is paid from assets through capital gains tax.

We have made a number of steps to reform both the dividend tax and the CGT regimes. For example, in 2016, the Government reformed the old, complex system of dividend taxation, simplifying it at the same time as increasing effective rates. In 2018, we reduced the tax-free dividend allowance from £5,000 to £2,000 per annum. In 2020, the Chancellor cut the lifetime limit of CGT entrepreneurs’ relief from £10 million to £1 million.

I would like to touch on the context in which this debate is taking place and the cost of living pressure on families, because those issues are important, as was recognised by many Members, including the hon. Member for Leeds East, the right hon. Member for Hayes and Harlington (John McDonnell) and the hon. Members for Strangford (Jim Shannon) and for Cynon Valley (Beth Winter). The hon. Member for Wansbeck (Ian Lavery) made a passionate speech, recognising the need to look after other people. That is exactly what the Government are trying to do, within the constraints and the global economic position we are in.

We are trying to support other people through our recent announcement of a £37 billion support package. We want to ensure that those who cannot work get support. We are taking a number of measures through the restart and kickstart schemes to ensure that people get into work and can support themselves. We are then ensuring that they are paid properly in work, and hon. Members will know about the increase in the national living wage and our measures to cut taxes to ensure that those in the lowest income brackets get sufficient sums when in work. We are also upskilling people so that they can increase their pay.

[Ian Lavery]

Does the Minister agree with the hon. Member for Christchurch (Sir Christopher Chope), who suggested that very wealthy people and companies should only pay extra, if indeed they choose to do so, in the form of a donation?

[Lucy Frazer]

My hon. Friend the Member for Christchurch was right to identify that that option is available, if people choose to take it. The Government have set out our tax regime, and that option is available to those who wish to pay more tax.

I was touching on the cost of living, which is important. As many Members have said, this is not just about statistics; it is about people. To give an example, a single mother with two children who works full time on the national living wage will receive £2,500 a year in additional support because of the measures we have taken. On the subject of statistics, the right hon. Member for Hayes and Harlington did mention some, but our latest statistics show that in 2020-21 1.2 million fewer people were in absolute poverty than 10 years earlier, in 2009-10.

Trade Union Bill

Debate between Lucy Frazer and Ian Lavery

Tuesday 10th November 2015 Commons Chamber

[Lucy Frazer]

I am about to finish.

The vote taken by the union will not garner public support and public trust that the representation of the unions demands, and it is for that reason that we should pass clauses 2 and 3 without amendment at this stage.

[Ian Lavery]

This is a Bill that nobody has asked for and that nobody wants. Even the latest polls in the national press show that the general public are opposed to this union-bashing Bill—this gagging Bill part two. It was the deputy chairman of the Conservative party who said it was about time that we stopped bashing the trade unions. Let us be completely clear on this issue. It is undoubtedly a ferocious, full-frontal attack on the 6 million-plus members of the trade union movement. I take exception to some comments that have been made, not by everybody on the Government Benches but certainly by a number who seem to want to distinguish between trade union members and ordinary people. The trade union members that I know and mix with are more than ordinary people; they are absolutely fantastic individuals who go the extra mile to try to help colleagues at every opportunity.

--- Later in debate ---

[Ian Lavery]

That comment would give me the opportunity, if the Deputy Speaker were to allow it, to diversify my contribution. The Conservative Government have increased to record levels zero-hour contracts, lower-paid work and the number of apprentices, but before Mr Deputy Speaker chastises me, I will move on from that immediately because it is nothing to do with the Bill.

[Lucy Frazer]

Does the hon. Gentleman accept that 788,000 days were lost last year in strike action, at a time when every party in this House says that productivity is key?

[Ian Lavery]

If that is the figure, so be it, but in every case industrial action would have been taken through the legal process and as a last resort by individuals who need to take strike action to make their voice heard. We have the most restrictive anti-trade union legislation in the western world, and to take a day’s action or any other type of action, workers have to go through all the hoops set out in legislation.