Oral Answers to Questions

Debate between Margot James and Nick Smith

Thursday 8th February 2018 Commons Chamber

[Nick Smith (Blaenau Gwent) (Lab)]

7. What steps he plans to take to maintain the level of funding for the film industry after the UK leaves the EU.

[The Minister of State, Department for Digital, Culture, Media and Sport (Margot James)]

The UK film industry is worth £4 billion a year to the UK economy. The Government are committed to supporting the industry and are consulting stakeholders to ensure that the sector continues to thrive after we leave the EU. The Prime Minister has made it clear that, where possible, we will continue to participate in EU programmes where there is mutual benefit to the UK and the EU, as there is in the case of Creative Europe, for example.

[Nick Smith]

Blaenau Gwent’s stunning scenery makes us an ideal location for UK films and television series, and the Creative Europe programme has supported the cinema distribution of more than 100 UK films in European markets in recent years. Will the Government ensure our continued participation in Creative Europe after we leave the EU, because it has been such a success?

[Margot James]

I agree that Creative Europe has been a success and that the hon. Gentleman’s constituency of Blaenau Gwent is a wonderful location, which has been used for many broadcasting opportunities. We are very committed to our role in Creative Europe. We recognise its value, and the Treasury has committed to honouring all applications, even those that are likely to require funding post-Brexit. We can be optimistic, although of course during negotiations there can be no guarantees.

Oral Answers to Questions

Debate between Margot James and Nick Smith

Tuesday 7th November 2017 Commons Chamber

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Margot James)]

I have worked closely with ministerial colleagues to implement a national minimum wage enforcement approach that protects the interests of social care workers and vulnerable service users. The Government recognise the financial pressures that some providers face, and we are exploring further options to minimise any impact on the sector. Any intervention would need to be proportionate, and the Government have opened discussions with the European Commission about issues relating to state aid.

[Nick Smith]

I thank the Minister for that answer, but how are the Government supporting individuals with personal budgets who could face bills of thousands of pounds in back-payments?

[Margot James]

We recognise that such individuals can be among the most vulnerable in society, and we are working to ensure that that group receives the necessary help and support. We expect local authorities to work with Her Majesty’s Revenue and Customs to ensure the right outcome for such individuals, but it is only fair that the budgets provided to personal budget holders reflect their legal obligations to pay the national minimum wage to workers on sleep-in duty both now and when it comes to any arrears owing.

Money Laundering and Tax Evasion (Azerbaijan)

Debate between Margot James and Nick Smith

Thursday 19th October 2017 Commons Chamber

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Margot James)]

I congratulate the right hon. Member for Barking (Dame Margaret Hodge) on securing this important debate, from which I have learnt the shocking truth about Azerbaijan, and on her forensic analysis.

The Government are committed to making the United Kingdom’s financial system a hostile environment for illicit finance. The National Crime Agency takes allegations such as those identified by the right hon. Lady seriously, and will consider carefully whether recent information would allow an investigation to proceed. The Government pursue a targeted but proportionate level of enforcement that focuses on achieving compliance from companies. We seek to counter financial crime while protecting the dynamism of the UK’s business environment.

[Nick Smith]

Will the Minister give way?

[Margot James]

I will, but I have very little time.

[Nick Smith]

Does the Minister think that she has heard enough this evening to ask the authorities to launch an investigation?

[Margot James]

I must confess that I am not entirely aware of what my powers are in that respect, but if I am so empowered, I will certainly do as the hon. Gentleman suggests.

We want the United Kingdom to be a trusted place in which to do business, and the best place in the world in which to set up and grow a business. The UK has high standards of business behaviour and corporate governance. The overwhelming majority of its 3.9 million companies contribute productively to the economy, abide by the law, and make a valuable contribution to society. In discussing what action to take in response to the minority who abuse the system, we must not undermine its strengths or impose more burdens on the law-abiding majority without very careful consideration.

The Government are active in taking action to tackle misuse. Since 2015, we have implemented a series of reforms to increase the transparency of UK incorporated legal persons and arrangements in order to prevent their misuse for illicit purposes. The reforms include, but are not limited to: the introduction of the publicly accessible register of people with significant control, which the right hon. Member for Barking mentioned; the abolition of bearer shares; the introduction of unexplained wealth orders; and the introduction of the combined register of trust and company service providers supervised by professional bodies, as well as HMRC.

[Margot James]

I have a lot amount of material to cover. I will give way a little later if I have time.

It is too early to measure the impact of many of those reforms, but we expect them to make a significant difference in helping to prevent the misuse of companies and other entities, and in assisting law enforcement agencies with their investigations when misuse does occur.

The right hon. Lady mentioned Companies House. It carries out checks on all information that is received to ensue that it is valid, complete, correctly formatted and in compliance with company law filing requirements. The obligation to ensure the information is accurate lies with the company and its directors. The validation checks serve to help companies to get things right. A company commits an offence if it fails to maintain its registers and keep them up to date.

The UK has a robust system of publicly accessible data. The Government favour an approach that encourages transparency of information, followed by the scrutiny of company information over its lifetime. I appreciate that—

[Nick Smith]

rose—

[Margot James]

I will give way if I have time, although I might cover the points the hon. Gentleman wants to raise.

It might appear that the system is designed around the needs of law-abiding companies, which are the vast majority. I appreciate that it is open to abuse. Maintaining one of the most open and extensively accessed registers in the world is a powerful tool in identifying false, inaccurate or possibly fraudulent information. With many eyes viewing the data, as well as errors, omissions or worse, the information held on the register can be subject to significant policing by a variety of users.

Companies House is always looking at ways to further improve the quality of data. A significant recent development includes the introduction of the “report it now” function, which makes raising concerns easier than ever before.

If irregularities are raised, Companies House follows up with the company in question, and in most cases any inaccuracies are corrected immediately. There were over 2 billion searches of the Companies House register in 2016-17, which indicates that the data are available and under scrutiny. Companies House works closely with enforcement agencies such as the National Crime Agency in sharing data analysis to combat economic crime.

I will now talk about Scottish limited partnerships, which the right hon. Lady raised. I fully recognise her concerns. Over the past year or so, serious concerns have been raised about the use of these partnerships as vehicles for criminality. As a result, my Department launched a call for evidence earlier this year to collect information about the extent of the problem and how the limited partnership legal framework might therefore need to be strengthened. The Government have been considering this evidence and I can confirm that we are actively considering reform. We will announce our next steps shortly.

That said, it is important to mention that Scottish limited partnerships are a popular form of incorporation. I accept that their number has increased over the last few years, which gives rise to perfectly legitimate suspicions, but they are also used by many legitimate businesses across the economy, particularly in the investment and pensions sectors, fulfilling a genuine commercial need.

As the right hon. Lady mentioned in her letter to me at the end of last month, as of June this year, Scottish limited partnerships and a number of other legal entities were required to identify and disclose their “people with significant control”—beneficial owners—to Companies House. This information will form part of a central register that is publicly available, consistent with the requirements already placed on other forms of UK companies since 2016. Our objective is that the requirement will provide transparency over the ownership and control of Scottish limited partnerships.

Scottish limited partnerships are also required to submit a statement at least once a year confirming that their “people with significant control” information on the companies register is accurate. The right hon. Lady highlighted in her letter to me that many companies have yet to comply, but I can assure her that they will be chased down. As this is a relatively new requirement, the build-up of the names into the register of those who own and control SLPs is still under way. Companies House is undertaking compliance activity to ensure that Scottish limited partnerships comply with the new regulations.

In summary, I can confirm that the Government are actively considering options for the reform of these partnerships and will be setting out their approach soon.

Question put and agreed to.