Oral Answers to Questions

Debate between Lucy Frazer and Matt Western

Thursday 11th January 2024 Commons Chamber

[Lucy Frazer]

The mid-term review is a very important point where we can look further, and indeed have looked further, at a number of issues, including competition, complaints and impartiality. We will be publishing the results of the mid-term review very shortly.

[Matt Western (Warwick and Leamington) (Lab)]

The Minister will know that Warwick and Leamington—Leamington being also known as Silicon Spa—enjoys the greatest concentration of games companies in the world. I appreciate what was said in the autumn statement, but there is a skills shortage. Can the Minister update us on what is being done to address that?

[Lucy Frazer]

The gaming industry in this country is world leading, and I have had the pleasure of visiting a number of gaming companies to see how they are thriving. We have a creative industries skills package, which we committed to in the creative industries sector vision, to ensure a pipeline of talent all the way from primary school right up until someone’s second or third job, and there are measures at every single one of those steps.

National Insurance Contributions (Increase of Thresholds) Bill

Debate between Lucy Frazer and Matt Western

2nd reading
Thursday 24th March 2022 Commons Chamber

[The Financial Secretary to the Treasury (Lucy Frazer)]

It is a privilege to close this debate on behalf of the Government. We have heard many excellent speeches from both sides of the House today and I thank all hon. Members for their contributions. Before I address their points, I will remind the House of the Bill’s purpose.

The Bill does three things: it cuts taxes to ensure that people have immediate help with the cost of living; it creates better conditions to enable businesses to invest and grow; and it ensures that people keep more of what they earn for years to come. The Bill makes changes to the national insurance contributions system, which will make it easier for households to manage their finances at this difficult time by putting billions of pounds back into their pockets.

As we have heard, the Bill has two main measures. First, it will increase the NICs primary threshold and the NICs lower profits limit to £12,750 from July. As my hon. Friend the Member for South Leicestershire (Alberto Costa) said, it is the largest single personal tax cut in a decade. It represents a £6 billion personal tax cut for 30 million people across the UK. In addition, almost 2 million people will be taken out of paying class 1 NICs, class 4 NICs, and the health and social care levy entirely.

Some hon. Members might be asking why we cannot introduce these measures sooner. The simple answer is that we feel that the July implementation date strikes the right balance and allows employers and payroll software firms to adapt to significant changes. My hon. Friend the Member for West Bromwich West (Shaun Bailey) highlighted the importance of updating HMRC’s guidance.

Secondly, the Bill seeks to alleviate some of the pressures caused by the rising cost of living on those who earn low amounts and who work for themselves. This measure will benefit half a million self-employed people by saving them up to £165 a year. As the Chief Secretary to the Treasury has already outlined, removing class 2 NICs from this group of low-earning self-employed workers will not prevent them from building their eligibility to the state pension and other contributory benefits.

I will now turn to some of the points raised during the debate by right hon. and hon. Members. The hon. Member for Ealing North (James Murray) made a few points and highlighted the tax burden. It is important to remember, however, the context in which the legislation is being brought forward and the context in which previous choices were made. He will remember that the Chancellor saved many livelihoods with the £400 billion of support that he provided during the covid pandemic. He also asked how we compare with other countries and what other countries are doing at this time. I inform him that the new tax to GDP ratio will still mean that we are in the middle of the pack internationally and lower than Germany, France and Italy.

The hon. Gentleman and the hon. Member for Warwick and Leamington (Matt Western) asked why we have not brought in a windfall tax on oil and gas companies. Many Conservative Members pointed out the answers to that. First, it is a short-term measure and we are bringing in long-term measures that will withstand the future. Secondly, we need those companies to invest in the future to ensure that we have energy security and that we transition to more renewable energy sources. They also pay more taxes already—40p in the pound not 19p in the pound as other companies do—and they have already invested, by way of taxation, £375 billion in production taxes.

[Matt Western]

I understand the point, and none of us really wants to see short-term measures, but in difficult times such as those we are in they are sometimes needed. The windfall tax is short term, of course, but is not the 5p fuel duty cut also short term?

Draft Non-Contentious Probate (Fees) Order 2018

Debate between Lucy Frazer and Matt Western

Thursday 7th February 2019 General Committees

[Lucy Frazer]

As I mentioned, the changes that the Government are making were considered previously in Committee and were well documented in the press, and points on the matter have been put to me in the Chamber. We have the power to pass the legislation by way of statutory instrument, and that is how we are doing so.

It is important to have a fair and functioning justice system. I will touch on the service that HMCTS provides. The decisions that are made in courts and tribunals convict the guilty, protect the innocent and help ordinary people take back their lives. The Government are committed to providing a world-class courts and tribunals system that supports vulnerable people. We are investing £1 billion to modernise and upgrade the courts system but, as is obvious, an effective and efficient justice system requires proper funding and it has long been the case that users of our courts contribute towards the costs, reducing the burden on taxpayers. We believe that remains relevant and reasonable.

By asking those who use the courts to pay more, where they can afford to do so, we are able to fund areas where we charge no fees to vulnerable victims and users. That includes, for example, domestic violence protection orders, non-molestation orders and cases before the first-tier tribunal concerning mental health, where applicants do not have to pay a fee at all. In 2017-18, the running costs of HMCTS were £1.8 billion, but we recovered only £710 million of that—less than 40%—in fee income. That position is unsustainable, and it is right that we look to users of the service to contribute more. We anticipate that the new fees will bring in additional income of £145 million in the next financial year, helping to fund our courts and tribunals by reducing the burden on the taxpayer.

[Matt Western (Warwick and Leamington) (Lab)]

I can see a lot of positives in what is proposed. However, given the funding gap between the actual costs of running the service and what is earned, as the Minister has described, is there not an enormous opportunity to charge even more for estates worth over £2 million? The cap seems to be unnecessarily low.

[Lucy Frazer]

That is an interesting point. The figure was higher the last time the proposal was before Parliament—£20,000 for the top fee, rather than the current proposal of £6,000—but the response was that it was too much, and we agree. The £6,000 is more proportionate. It still brings in an income of £145 million, which is essential to fund the Courts Service. Parliament has understood the importance and value of our justice system, and the financial pressures on HMCTS, which is why in the Anti-social Behaviour, Crime and Policing Act 2014 it empowered the Lord Chancellor to charge enhanced fees.

I wish to deal with some of the concerns expressed by the JCSI and the SLSC. They reported the draft statutory instrument for doubtful vires and unexpected use of powers. They felt that the new fees amounted to a tax and questioned whether the imposition of such levels of fees was anticipated when the primary power was approved. We disagree with those Committees.

The new fees come under the category of “enhanced” fees. As Members are aware, Parliament has expressly given power to the Lord Chancellor to set certain court and tribunal fees above the cost of providing the service, under section 180 of the 2014 Act. The Act gives the Lord Chancellor the explicit authority to impose enhanced fees in order to

“prescribe a fee of an amount which is intended to exceed the cost of anything in respect of which the fee is charged.”

That is what the draft order seeks to do.

In doing so, the Lord Chancellor must have regard to, among other factors, the financial position of the courts and tribunals for which he or she is responsible, including, in particular, any costs incurred by those courts and tribunals that are not met by the existing fee income. The Act is also clear that any income from the fees must be used to finance an efficient and effective system of courts and tribunals. Those provisions clearly demonstrate Parliament’s intention that the Lord Chancellor should be able to set fees above cost in one part of the system in order to subsidise other parts, in order to maintain effective operation of the system as a whole.

The JCSI went on to argue that the basic premise of the fee is that it should be directly related to the cost of the service. We do not accept that. The specific legislative provision in section 180 of the 2014 Act breaks the link between the cost of the service and the fee that may be charged. That was clearly the intention of Parliament. The proposals in the draft order are consistent with the primary power and with the assurances given to Parliament when the Bill was considered. This is not the first time the Government have sought to introduce enhanced fees, or fees that relate to the value of the issues at stake—it has been done for certain civil money claims, for example. We therefore do not consider the draft order to be an unexpected use of the section 180 power.

The SLSC further argued that—

Oral Answers to Questions

Debate between Lucy Frazer and Matt Western

Tuesday 18th December 2018 Commons Chamber

[Lucy Frazer]

We are concerned about the injury that is suffered, not the person’s profession. As I said, this measure will help people to access courts. The small claims limit for other money claims is £10,000, not £2,000, and people will still be able to get justice.

[Matt Western (Warwick and Leamington) (Lab)]

2. What estimate he has made of the number of people who become homeless immediately after being released from short prison sentences.