Oral Answers to Questions

Debate between Mark Hoban and Charlie Elphicke

Monday 20th May 2013 Commons Chamber

[Mr Hoban]

As I said, we are in the process of implementing Professor Harrington’s recommendations. I would make the point to the hon. Lady, however, that when her party was in government, one in 10 people received the full employment support allowance, but as a consequence of our reforms three in 10 people now receive it, which demonstrates that the system is an improvement on the one that we inherited.

[Charlie Elphicke (Dover) (Con)]

I thank the Minister for that answer. Does it not indicate that the Government take ESA very seriously and are being diligent in providing unconditional support to those who need it?

[Mr Hoban]

My hon. Friend is absolutely right. I want a system that gives the right support to the people who need it the most. We should also recognise that because of our reforms and improvements to the process, only 15% of fit-for-work decisions are successfully overturned.

Oral Answers to Questions

Debate between Mark Hoban and Charlie Elphicke

Monday 5th November 2012 Commons Chamber

[Charlie Elphicke (Dover) (Con)]

Does the Minister welcome Professor Harrington’s comment in his latest assessment that things have noticeably changed for the better? I have heard it said that 40% of appeals are successful. Is that right, or is the proportion lower than that?

[Mr Hoban]

Professor Harrington has done a very good job. He will produce his third review shortly. The reality is that the DWP makes about 1 million decisions about entry into work, and only 9% of them have been successfully overturned.

Finance Bill

Debate between Mark Hoban and Charlie Elphicke

Tuesday 3rd July 2012 Commons Chamber

[Mr Hoban]

The last Prime Minister had a problem recognising his responsibility for the problems that befell the economy.

One way in which we have sought to get the balance right in the taxation of businesses is by introducing the bank levy. We took that decision in opposition. We thought that it was right to ensure that banks paid their fair share towards dealing with the risks that they pose to the economy. The measure was opposed by the previous Government. They did not want to introduce a bank levy on a unilateral basis. We had the courage to make that decision and to ensure that banks pay their fair share.

The bank levy is a tax on the balance sheets of banking groups and building societies. It complements the wider regulatory reforms that are aimed at improving financial stability, such as the higher capital and liquidity standards. It thereby ensures that the banking sector makes a fair and substantial contribution that reflects the risks that it poses to the financial system and the wider economy. The levy is also intended to encourage banks to move away from risky funding models.

From the outset, the Government have been clear that we intend the levy to raise at least £2.5 billion each year. The Opposition should get their facts right. They have trotted out the gross figure that was raised by the bank payroll tax. They must bear in mind that the tax also reduced pay-as-you-earn and national insurance receipts. That is why the actual yield of the bank payroll tax was only £2.3 billion. Our levy will therefore raise more, year after year, than was raised by their one-off bank payroll tax.

The target yield for the levy was set out in the Government’s first Budget. We also announced our intention to make significant cuts to the main rate of corporation tax. Let me deal with another red herring from the Opposition. We were clear at that time, as we are now, that the bank levy yield will far outweigh the benefits that banks will receive from the corporation tax changes. Other sectors, including manufacturing, will benefit from the reduction in corporation tax, but banks will not benefit because of the bank levy. In the 2011 and 2012 Budgets, the Chancellor has gone further and announced two more cuts in the main rate of corporation tax. It now stands at 24%. The increase in the bank levy announced in the Budget offsets the benefit of those additional cuts to maintain the incentives on banks to move towards less risky funding.

New clause 13, tabled by the shadow Chancellor, is, in the words of Yogi Berra, the great American baseball coach,

“déjà vu all over again”.

This is at least the fifth time in this Parliament and the second time in the passage of the Finance Bill that we have debated the bank payroll tax. We have heard no new arguments from the Opposition and nothing to persuade us to vote for it.

Yet again, we have to point out to the Labour party that such a tax would be counter-productive and unnecessary. The bank payroll tax was introduced as a one-off interim measure in the last Parliament ahead of regulatory reforms and changes to remuneration practice and corporate governance. The previous Chancellor, the right hon. Member for Edinburgh South West (Mr Darling)—somebody the hon. Member for Newcastle upon Tyne North should listen to and learn from—said that it could not be repeated. He pointed out that it was a temporary measure until bank remuneration practices were changed, and we have changed those practices.

The new clause calls for the proceeds of the tax to be used to help employment, but I should take some time to remind the House of the measures that we are already taking to do that. We have introduced the youth contract and are investing £1 billion over the next three years in supporting half a million young people into employment and educational opportunities. We will provide 160,000 wage incentives worth up to £2,275 each to employers who recruit an 18 to 24-year-old through the Work programme. There will be an extra quarter of a million voluntary work experience or sector work academy places over the next three years and a further 20,000 incentive payments to encourage employers to take on young apprentices, taking the total to 40,000.

We are also providing additional support through Jobcentre Plus and the opportunity for people to be referred for a careers interview with the national careers service. We are already providing more apprenticeship places than any previous Government, with a record 457,000 apprenticeships delivered in 2010-11 and a commitment to delivering 1.2 million over the entire spending review period. That is a quarter of a million more than the previous Government’s commitment.

The hon. Member for Newcastle upon Tyne North says that the bank payroll tax should be used to help youth employment, but let us consider the number of ways the Labour party has already announced it would be used. The Leader of the Opposition was asked where the money would come from to reverse the increase in VAT, and he said:

“I said for example we should have a higher bank levy.”

It was also suggested that it be used to pay for higher capital spending of about £7.5 billion in 2010, which would have required £6 billion from the bank levy. The Leader of the Opposition said that reversing child benefit changes could be afforded by using the bank payroll tax—yet another use for it.

The bank payroll tax is the tax that continues to give, the tax that the Opposition always turn to when they want to find a way of plugging the black hole in their figures. They used it to explain how they would reverse tax credit savings, spend more money on the regional growth fund, cut the deficit and turn empty shops into community centres. We have heard a remarkable number of ways in which something that the previous Government said was a one-off would be used to fill the black hole in Labour’s economic thinking.

[Charlie Elphicke]

How many times over have the Opposition spent that money so far?

[Mr Hoban]

My hon. Friend is right to ask me that question. About 15 times. Every time there is a tricky question, what is the answer? Let us reintroduce the one-off bank payroll tax. That demonstrates the emptiness at the heart of Labour’s economic policy. It has no concrete ideas to tackle what happened in the financial crisis or the economic problems that it left behind. The Opposition are reduced to trotting out the same stale arguments for the fifth time running, and I urge the House to reject them once again.

Eurozone Crisis

Debate between Mark Hoban and Charlie Elphicke

Thursday 3rd November 2011 Commons Chamber

[Charlie Elphicke (Dover) (Con)]

Does the Financial Secretary agree that, while much progress has been made over the last 18 months—demonstrated most recently by this week’s excellent growth figures—we need measures to protect us from the implosion of the eurozone? What does he think are the best options to shield us from wider economic turbulence in that direction?

[Mr Hoban]

I think that what we need is the implementation of the three-point plan that was agreed last week in the eurozone.

Oral Answers to Questions

Debate between Mark Hoban and Charlie Elphicke

Tuesday 1st November 2011 Commons Chamber

[Mr Hoban]

The hon. Gentleman will realise that the biggest increase in youth unemployment in recent years took place when his party was in government. This Government have put in place the long-term foundations to tackle unemployment and raise growth across the UK.

[Charlie Elphicke (Dover) (Con)]

May I welcome today’s excellent economic growth figures, which are well ahead of forecasts at 0.5%? Our growth is just as high as US growth this year, without the massive fiscal stimulus. Is that not right?

[Mr Hoban]

My hon. Friend makes an important point. It would have been better if the Labour party had welcomed today’s growth figures rather than talking our economy down.

Finance Ministers’ Meeting (Ireland)

Debate between Mark Hoban and Charlie Elphicke

Wednesday 17th November 2010 Commons Chamber

[Mr Hoban]

As I said, no formal request has been made for assistance. We have a clear national interest in the stability of the Irish economy, and that must be recognised.

[Charlie Elphicke (Dover) (Con)]

Does not the crisis in Ireland and across Europe underline how right the Government have been to take the tough but necessary action to save us from bankruptcy? Will the Minister condemn the siren voices in Europe that are talking down Ireland, and will he be a friend in need, as we, as a country, should be?

Equitable Life (Payments) Bill

Debate between Mark Hoban and Charlie Elphicke

Tuesday 14th September 2010 Commons Chamber

[Mr Hoban]

That is an important point, but we also need to consider other factors such as the general state of the public finances and the other demands on public money in the spending review. We must also recognise that the Government have decided to introduce radical reform of financial regulation and to improve the regulation of retail financial services through the establishment of the consumer protection and markets authority. We can take a range of measures to help restore long-term confidence in savings, and people will have confidence in saving for the future if they recognise that the economy is on a stable footing, that we have got public spending under control and that we are tackling the deficit and keeping interest rates reasonable for as long as possible.

[Charlie Elphicke (Dover) (Con)]

I understand my hon. Friend’s desire to get full and final closure, but the consensus at a packed public meeting of my constituents in Dover and Deal was that it would be better to have staged payments over a number of years if affordability was a problem right now. Will he consider that very seriously?

[Mr Hoban]

I discussed that idea, but I received a strong representation from Equitable Life advising against it, because of the complexity that might be attached to staged payments. Some have suggested that we make payments into people’s pension funds, but some of the key criteria for judging the payments scheme will be simplicity, speed and transparency. People will be concerned that a series of small payments over a long period will not necessarily meet the simplicity, speed and transparency criteria against which a payments scheme ought to be judged.