Business Rates

Mel Stride Excerpts

Wednesday 13th June 2018 Westminster Hall

[Derek Thomas (St Ives) (Con)]

I thank the hon. Member for York Central (Rachael Maskell) for securing this debate. It is one that I wanted to secure, but I was not successful, so I am glad to have the opportunity to contribute again on the subject. The Minister might just groan when he hears me speaking again—he has heard the issues several times before, and I was glad to raise them in last week’s Opposition day debate.

I agree with my right hon. Friend the Member for East Devon (Sir Hugo Swire) that the Minister is engaged and keen to resolve this issue, and I understand how complex and difficult it is, so I will not be unfriendly in my remarks, but I want to reiterate some points I have made before, as well as bring up an issue that Cornish colleagues have been concerned about, but which has not gained any traction here in Westminster.

Issues with business rates lead me to believe that the system must be scrapped. One reason for that is the significant housing issue in Cornwall. It is a real challenge to provide and retain houses for local families and for people who live and work locally and who want to work at the hospital or in public services perhaps, but who just cannot secure the housing they need.

Everyone who lives in a house, unless they are on some sort of benefit, pays council tax, but if someone has a property that they own and which they choose to use as a holiday let, it can be registered as a business and they can avoid paying council tax altogether and then claim small business rate relief. I live in a three-bedroom house and I pay £1,600 a year to live in that property; I contribute, as lots of families do. A property next door is paying no council tax whatever, so it is not contributing.

We have a cross-party campaign in Cornwall on this issue. The real tragedy is that it is possible for a second-home owner to advertise his property as available for rent and also claim small business rate relief. Other Cornish colleagues and I have been raising that issue since we were first elected in 2015. I do not think the Government are fully engaged and fully understand the challenge that that poses for a community such as Cornwall, which needs every penny it can get. There is an opportunity for the Government to close the loophole and collect more tax, completely fairly. I urge the Minister to look at that again and to give his Cornish colleagues some cheer when it comes to trying to address our housing problems.

On the high street, my constituency also has shops that have closed since Christmas. There are lots of reasons, which include ridiculous parking increases and an obvious change in customer behaviour, but there are also business rates. In the 2016 review, St Ives saw quite dramatic increases, along with London and the south-east and other areas. It was a significant shock to many businesses.

I have examples that show that the way business rates are calculated does not make any sense. It is not clear why one shop should pay one amount while the shop next door pays something completely different. If we could understand the business rates arrangement, and if it were equitable, perhaps it would not be such a problem, but some shops have no idea why they are being charged such sums, and the check and challenge process does not help them.

Behind the headlines about the big retailers and multiples, a number of small businesses are closing or threatening to close. I have said previously in this place that about 11 businesses have told me that they do not believe they will see it out to the end of this year. Their problem is that they own their building or have a stake in it, so they have to carry on paying business rates even if they can no longer function as a business. That is a depressing message to send to what we used to describe as hard-working families.

The issue of business rates is complex; it is not just about consumer behaviour and people choosing to shop online. I disagree with my right hon. Friend the Member for East Devon. I can barely work out how to enter my card details online, so I tend to go to a shop when I have a spare moment.

Let me give examples of what is happening in my constituency. In Penzance, No. 8 has 90 square metres and is paying £14,750 a year. No. 8A, a similar property right next door—I cannot tell the difference between them—has 88 square metres, so 2 square metres less, and is paying £18,250. The Valuation Office Agency has not been able to explain the difference between them. The Minister has been engaging and helpful, and has asked about that. My office is working up a few examples of that nature so they can be investigated and studied. In one sense, I am being fairly unhelpful, in that I am raising an issue about which the Minister has already invited me to give him details. We are doing that and will get them to him soon.

In Helston, Betfred has 132 square metres and pays £13,500 a year. Next door, an independent deli in a much smaller building of 123 square metres—I would love to show hon. Members the photos—is paying £16,250. We have done everything we can to support that shop with the Valuation Office Agency, check and challenge, and the local authority, and to try to get it some help. It has had a small reduction, but the bottom line is that the owners get out of bed in the morning and have to find that money before they do anything else. They cannot understand why Betfred—a multiple next door, with a much bigger shop front and, sadly, a busier shop—is paying £3,000 a year less.

In St Ives town itself, there is a fudge shop of just 20 square metres that pays £13,750. St Ives fudge is world renowned, so it is understandable that people want to shop there, but that does not justify the fact that the Government or the Valuation Office Agency have decided that for just 20 square metres it needs to pay nearly £14,000 a year. There are lots of examples in St Ives town of what seem to be arbitrary increases.

I recognise that the Government have introduced lots of measures to try to support such shops and have enabled local authorities to offer help, but we have not seen the benefit. One pub in St Ives has had real help from Cornwall Council, but those other shops have been left to find the money month in, month out. The problem with St Ives—this is the nature of the high street in a popular town—is that an entrepreneur who wants to make a go of running a shop in the town centre will have to pay whatever rent is required, because that is what the absent landlord asks for, and there are few other options. They last perhaps nine or 12 months. When they leave, the rent goes up, and a new aspirational person comes in and tries to set up a business there. Their short lifespan has an impact on the business rate valuation, and on all the other shops, which might have been there for 100 years. Since Christmas, we have lost the local fruit and veg shop and all sorts of other businesses that served the community for 100 years or more.

The real tragedy is that, previously, holiday makers would flood to St Ives and buy what they needed for the week. Now they arrive and the truck from the local supermarket, which might be travelling from Truro, will turn up and deliver all they need for the week, above the very grocery shop that would previously have sold to them.

That is about consumer behaviour, but the real challenge is that business rate charges are not equitable. More than a year ago, I got the Valuation Office Agency to come to St Ives to meet a room full of concerned business owners, and it refused to comment on any individual business. All it did was explain how we could do the check and challenge. Those businesses are in a busy part of town, so they might be expected to be financially successful. The owners work extremely hard day in, day out to make their businesses work—often, they do not have time to jump through the hoops, although many of them did—only to be told they are paying the right amount of money.

I want to ask for three things. First, we should review the review. I know we have another review, but we need to look at what happened 18 months to two years ago, and at why some shops and retailers saw ridiculous increases. We need to do something quickly to address that now, because those businesses are going out of business.

Secondly, the point about local authorities keeping the money from business rates is important, but town and parish councils also need support, because there is often a double devolution situation, with powers shunted down without money. In Helston, the town council—it would be great to have a pilot, along with York Central—would love to grapple with its town, make it vibrant and support the high street, but it has no money to do that.

If we are not going to get rid of business rates, it would be great to allow town councils to retain 1% or 2% of the business rates collected. For Helston, that would be about £200,000 a year, which would give the council the power to transform the shopping experience on the high street and support the very people who are spending that money. I know that 1% or 2% is a lot of money, but it is quite a small chunk of what is collected and would give the towns a fighting chance.

Finally, I recognise that the Government need to collect the 2.4%—

[The Financial Secretary to the Treasury (Mel Stride)]

It is 24%.

[Derek Thomas]

Is it 24%? Golly! I know the Government need to continue to collect that money, and I am absolutely in favour of the transaction tax. A high street business should pay the same rate on an individual item as an out-of-town store or an online store pays. There must be a way to make taxes fair. There must be a simple way to make tax digital that enables the Government to continue to collect the money they need while ensuring the system is fair for all those who seek to sell items to customers.

I am grateful for the opportunity to speak in the debate, and I appreciate that the Minister is listening and wants to resolve the difficulties that high streets face.

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[The Financial Secretary to the Treasury (Mel Stride)]

It is a pleasure to serve under your chairmanship again, Mr Gray.

I congratulate the hon. Member for York Central (Rachael Maskell) both on securing the debate and on the tenacious approach she has rightly taken to the extremely important matter of business rates. I thank her for her comprehensive contribution, and in particular for the examples she gave of high street businesses—I think we all recognise that many face considerable challenges. I also thank the various other speakers, who raised numerous points. I intend to pick up on as many as I can, but I would of course be happy to engage with Members outside the Chamber on any that I omit.

I thank my right hon. and gallant Friend the Member for East Devon (Sir Hugo Swire) for his kind remarks about the amount that I care about this issue and for referencing my business background. I fully appreciate what a struggle it is in the business world, even when times are extremely good. It is never easy to go out and employ people, to generate wealth and to have a successful business. I also appreciate that business rates are one of those taxes that businesses simply cannot avoid—they are paid irrespective of profitability, which of course has particular consequences in some cases.

We need to put this debate in context. A number of Members said that business rates are an issue but are not the totality of the pressures that our high streets face. We heard much about the challenges of online marketplaces and of the planning system—when there is a change of use of businesses that reside on our high streets, for instance—and my right hon. and gallant Friend raised the issue of parking. Myriad issues impinge on this space, and I think we are all seeking to ensure that taxes right across the system are competitive, that there is fairness among those who are expected to pay them, and that they are collected, so that we minimise tax avoidance at every stage.

That brings me to the comments by the hon. Member for York Central about possible alternatives to the current rating system. She mentioned a tax on revenue or on profitability. As soon we started to tax revenue, we would run into the problem that businesses that were not profitable still had a turnover. For example, a new entrant on the high street that we all wanted to thrive may get throttled by the kind of approach that she suggests. If we went for a tax on profits, there would be the potential for profit shifting. If there were a particular regime in one area, businesses may move profits around between multiple enterprises to reduce their overall tax.

The hon. Member for Sheffield South East (Mr Betts) recognised that. He made the important point that business rates have a distinct advantage when it comes to avoidance, because buildings cannot be shifted around in the way that it might be possible to shift other metrics. He also raised the 100% business rates retention pilots and expressed hope that we would pursue that measure. We will pursue it with vigour. I am watching it very closely in Devon, where the pilot scheme is also operating. I very much look forward to catching up with the report of the Housing, Communities and Local Government Committee, which he chairs.

My hon. Friend the Member for St Ives (Derek Thomas) raised the issue of second homes being designated as businesses because they are holiday lets. We are engaged with the VOA to ensure that no abuse occurs in those circumstances. He will be aware that certain criteria have to be met for individuals or companies to treat properties in that way. I am happy to engage with him outside the Chamber on that issue, because he raised one or two interesting points. He also raised the issue of different businesses paying different rates and gave an example of two businesses right next door to each other. He and I have discussed that, and I look forward to looking in greater detail with him at the examples that I know he will come forward with.

The hon. Member for High Peak (Ruth George) raised a point about pubs and suggested that information being made available to the public might drive crime. I am certainly prepared to look at that. I imagine that those who are out to raid the premises of pubs have other measures by which they might be able to discern whether a lot of cash is being taken—how many people are in there drinking on a Friday night, for example—but I am certainly happy to speak to her about that. She also raised the way pub rates are calculated. They are valued by the VOA using the fair maintainable trade method, which has been agreed with the British Beer and Pub Association.

Let me point out the numerous things that the Government have done on business rates to support businesses. In 2016, we announced around £9 billion of relief on business rates. We made the 100% small business relief permanent, which took 600,000 businesses out of rates altogether. We increased the threshold for the standard multiplier, removing 250,000 businesses from the higher rate of business rates. Of course, we were able to do that only because of our prudent stewardship of the economy, which has allowed us the space to provide that relief to the business community.

I have limited time, but I will dwell for a moment on the online business threat, which a number of hon. Members rightly raised. There is a growing number of online businesses in this space, and an increasing number of purchases are happening through online companies. It is important to make the point up front that when we refer to some of those companies paying relatively small amounts of tax compared with high street operations, we are talking not about tax avoidance but about whether the way the international tax regime operates is appropriate or functional for the 21st century. It is not. We need to find different ways of taxing online platforms, whether they are search engines, social media platforms that generate revenue, or online marketplaces, where significant value generation occurs through the relationship between users based in the UK and the platform itself.

[Sir Hugo Swire]

It is reassuring to hear the Minister say that we need to look at ways of taxing those rather more mobile forms of purchasing online. Will he say whether there is a team in the Treasury doing that, and when it is likely to report?

[Mel Stride]

There is indeed. I am personally engaged in that matter, which has been taken up at the OECD and the European Union. They have both produced interim reports on the issue and suggested that we might look multilaterally at some kind of revenue-based taxation, albeit—to get back to the problem of revenue-based tax—we do not want to choke off new entrants to the marketplace, which may be loss-making, so there may have to be some de minimis thresholds associated with that formula. We are actively pursuing that on a multilateral basis with countries in those two institutions. I discussed exactly this issue with Finance Ministers from OECD countries at the ministerial meeting of the OECD in Paris last week. We have made it clear that, although it would be most beneficial to move multilaterally with other countries, we will make a unilateral move if we need to.

I am conscious that we are down to the last minute and I would like to give the hon. Member for York Central an opportunity to respond, so I will draw my remarks to a conclusion.

Finance (No.3) Bill: Draft

Mel Stride Excerpts

Monday 11th June 2018 Written Statements

[The Financial Secretary to the Treasury (Mel Stride)]

The Government will introduce Finance (No.3) Bill following the Budget in the autumn.

In line with the approach to tax policy making set out in the Government’s documents “Tax Policy Making: a new approach”, published in 2010, and “The new Budget timetable and the tax policy making process”, published in 2017, the Government are committed, where possible, to publishing most tax legislation in draft for technical consultation before the legislation is laid before Parliament.

The Government will publish draft clauses for Finance (No.3) Bill on Friday 6 July 2018, along with accompanying explanatory notes, tax information and impact notes, responses to consultations and other supporting documents. All publications will be available at www.gov.uk.

[HCWS757]

Draft Double Taxation Relief and International Tax Enforcement (Belarus) Order 2018 Draft Double Taxation Relief and International Tax Enforcement (Ukraine) Order 2018

Mel Stride Excerpts

Monday 4th June 2018 General Committees

[The Chair]

I call the Minister to move the first motion and to speak to both orders. At the end of the debate, I will ask him to move the second motion formally.

[The Financial Secretary to the Treasury (Mel Stride)]

I beg to move,

That the Committee has considered the draft Double Taxation Relief and International Tax Enforcement (Belarus) Order 2018.

[The Chair]

With this it will be convenient to consider the draft Double Taxation Relief and International Tax Enforcement (Ukraine) Order 2018.

[Mel Stride]

Mr Robertson, it is a pleasure to serve under your chairmanship for, I think, the first time. It is nice to be able to do that, and it is also nice to be in the presence of my right hon. Friend the Member for Maldon, who is the chair of the all-party parliamentary groups on Belarus and on Ukraine. I know he has important matters that he wants to discuss with the Committee imminently.

I will speak to both orders before the Committee. The first gives effect to a first-time double taxation agreement with Belarus, and the second contains a protocol amending our existing agreement with Ukraine. DTAs remove barriers to international trade and investment and provide a clear and fair framework for taxing businesses that trade across borders. In doing so, they benefit business and the economies of the countries signed up to them.

I will briefly say a few words about each agreement. Belarus is the last country still applying the UK’s 1985 double taxation agreement with the former Soviet Union. When it enters into force, the new DTA will effectively terminate that old agreement. The new DTA with Belarus will mean that the UK has bilateral DTAs with all the countries that once made up the USSR. The USSR agreement provided for broad exemptions from source-state taxation. Belarus takes a different approach to its bilateral DTAs, seeking to preserve taxing rights in respect of dividends, interest and royalty payments that arise there. While the UK takes a different approach, we recognise that states will want to renegotiate treaties to reflect their own circumstances, and nothing would be gained by refusing to engage with Belarus’s wish to replace the USSR DTA.

The new agreement compares favourably with those that Belarus has agreed with other countries since its independence. For example, we have agreed a withholding tax rate of 5% on dividends, while preserving our right to tax dividends from real estate investment trusts at 15%. We have agreed a 5% withholding tax rate on interest, but with an important exemption for lending by banks. The agreement also contains the most up-to-date provisions to guard against treaty abuse, the latest OECD exchange of information article, and a provision for mutual assistance in the collection of tax debts. Those features strengthen both countries’ defences against taxation avoidance and evasion.

The protocol with Ukraine amends our existing 1993 DTA. We entered into negotiations at Ukraine’s request, as part of an exercise it is undertaking to amend its treaties with a number of European partners. The agreements that Ukraine entered into shortly after independence provided for broad exemptions from source-state taxation. It wishes to change that to enable it to tax interest and royalties arising in Ukraine and to raise the rate at which portfolio dividends can be taxed. Ukraine has chosen to do that on a consistent basis across its network as it seeks to reset its position. As such, United Kingdom businesses will not be disadvantaged as compared to their competitors in other jurisdictions.

The new protocol also improves the position of UK businesses in receipt of dividends from Ukrainian subsidiaries. Currently, the provision requires a company to be subject to tax on dividends it receives, while dividends in the United Kingdom are no longer taxable following the introduction of a corporate dividend exemption regime in 2009. The protocol also provides for a more general modernisation of the DTA to reflect changes in the domestic laws of the two states and the OECD model, including substantially all the provisions included in the multilateral convention to implement tax treaty-related measures to prevent base erosion and profit shifting, or the MLI.

In summary, these are agreements that the UK, Belarus and Ukraine should be happy with. They will provide a stable framework in which trade and investment between the UK and Belarus, and the UK and Ukraine, can continue to flourish.

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[Mel Stride]

I thank the three contributors to this important debate. I turn to the matters raised by the hon. Member for Oxford East, some of which were in unison with those raised by the hon. Member for Glasgow Central. First, on the information provided in advance, I would be happy to take a representation from the hon. Ladies on the specific points that it might have been useful to have had included and perhaps use that as the starting point for considering the more general point they both made. It is probably worth pointing out that when we know that such legislation is coming forward, I am always happy to take any questions by way of letter or to meet and discuss the legislation in advance.

I will certainly look into HMRC and its forward programme, as it was described. I am not aware, certainly within my part of the Treasury, of there being a particular list of such matters that are coming forward. Of course, such things are always subject to the timetabling of the business of the House of Commons, as Members will know.

In the context of Belarus, the hon. Member for Oxford East raised the permanent establishment arrangements around the temporal threshold—the 12 months—in respect of construction sites, and she asked the perfectly reasonable question of why that was the case. I am informed that it is a standard OECD-based rule. [Interruption.] She is looking at me slightly quizzically, which is perfectly in order. If she would like some more information, I am very happy to dig a little deeper on her behalf outside the Committee.

There are a couple of points on the timing of the orders and why it has taken quite a considerable time for them to come before the Committee. We have now negotiated DTAs with all of the Soviet successor states. We negotiated with Belarus in 1995 and in 2011, but the political situation and EU sanctions meant that things stalled. The situation has now improved, so we have successfully renewed our efforts. Ukraine has not yet ratified the treaty, so the fact that there may have been a delay between the protocol and the order—hopefully—going through this afternoon should not have any impact.

I turn to the valuable contribution from my right hon. Friend the Member for Maldon, who shared with us his detailed experience of both Belarus and Ukraine. I entirely agree with him about the importance of developing relationships with Belarus for the reasons he gave—the geopolitical reason of its particular leaning towards Russia, and the value of trade with our country in building relationships and encouraging things such as privatisation. I also agree with the important points he made about Ukraine. On corruption, one of the benefits of double taxation agreements is that there are specific measures in place to ensure that we can exchange information on tax matters, wherein a lot of corruption often lies. That is a positive aspect to his point.

My right hon. Friend finished by rightly raising the need, post Brexit, to increase trade with Ukraine and Belarus, and with other, similar countries. Thankfully, as he suggested, that is not a matter for me but for Ministers in the Department for International Trade, where I know he will make representations.

Question put and agreed to.

Resolved,

That the Committee has considered the draft Double Taxation Relief and International Tax Enforcement (Belarus) Order 2018.

DRAFT DOUBLE TAXATION RELIEF AND INTERNATIONAL TAX ENFORCEMENT (UKRAINE) ORDER 2018

Resolved,

That the Committee has considered the draft Double Taxation Relief and International Tax Enforcement (Ukraine) Order 2018.—(Mel Stride.)

Oral Answers to Questions

Mel Stride Excerpts

Tuesday 22nd May 2018 Commons Chamber

[Stephen Metcalfe (South Basildon and East Thurrock) (Con)]

9. What steps he is taking to support first-time home-buyers throughout the UK.

[The Financial Secretary to the Treasury (Mel Stride)]

In the last Budget we abolished stamp duty for first-time buyers for the first £300,000 of a property’s value up to £500,000 in total. That has meant that 95% of first-time buyers have paid less stamp duty and a full 80% of first-time buyers have paid no stamp duty at all.

[Stephen Metcalfe]

Last November the Chancellor announced an ambitious package to tackle the broken housing market. How many first-time buyers have benefited from that package, particularly in Essex, and where can people find further information about this so we can make hopefully impressive numbers even greater?

[Mel Stride]

Some 69,000 individuals have already benefited from this vital tax relief and over 1 million will do so over the coming five years. We do not have disaggregated data specifically for Essex, but I can tell my hon. Friend that within the south-east 12,900 individuals have benefited from first-time buyer tax relief.

[Victoria Prentis (Banbury) (Con)]

17. My constituency tops the leader board for house building, building at the moment over three a day. Can the Minister give an assessment of how much my first-time buyers are saving because of the Government’s policies?

[Mel Stride]

As I outlined to my hon. Friend the Member for South Basildon and East Thurrock (Stephen Metcalfe) who asked the preceding question, in the south-east 12,900 first-time buyers have benefited from this relief, of whom 9,000 purchased a property of a value of between £300,000 and £500,000 in total.

[Chris Elmore (Ogmore) (Lab)]

10. What steps his Department is taking to reduce the number of tax credits overpayments.

[The Financial Secretary to the Treasury (Mel Stride)]

Her Majesty’s Revenue and Customs has taken a variety of steps to reduce overpayments of tax credits including real-time income data in-year, guidance that is very clear on these matters, and of course providing appropriate contact routes with HMRC so that those who have changed circumstances can indicate that to our tax authorities.

[Chris Elmore]

Overpayment of tax credits can have disastrous impacts on families; a constituent of mine has been left with a bill of £8,000 as a result of purely administrative errors admitted by HMRC. Such errors can create real financial hardship and in the past have even pushed some families into poverty. Will the Minister start instructing Treasury and HMRC officials to do more to tackle this problem?

[Mel Stride]

HMRC is doing a great deal, as I have already outlined to the hon. Gentleman, in terms of making sure that the correct information is provided. Overpayments do not solely emanate from HMRC; there is of course customer error and there can be negligence or a failure to report a change of circumstances. But I can assure the hon. Gentleman that HMRC is always sympathetic and careful in its approach to anybody in the kind of situation he described.

[Andrew Percy (Brigg and Goole) (Con)]

12. What steps he is taking to support economic growth.

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[Laura Smith (Crewe and Nantwich) (Lab)]

16. What steps he has taken to give Her Majesty’s Revenue and Customs the appropriate powers and resources to tackle tax evasion.

[The Financial Secretary to the Treasury (Mel Stride)]

The Government have brought in more than 100 measures to clamp down on tax avoidance, evasion and non-compliance since 2010, and the associated powers that HMRC has had in that respect. We have protected and brought in £175 billion across that period, which is substantially more than we invest in our national health service every year.

[Laura Smith]

Almost 15,000 HMRC and Valuation Office Agency jobs have been lost since 2010, and that is alongside tax office closures up and down the country. With potential changes to our customs border on the horizon, does the Chancellor not agree that now would be the time to invest in HMRC, and put a stop to all planned cuts and closures?

[Mel Stride]

I am pleased to be able to inform the hon. Lady that we have been investing heavily in HMRC to clamp down on the issues she has raised—we are talking about some £2 billion since 2010. We have 23,000 staff in HMRC engaged in that purpose and we consequently have about the lowest tax gap in the entire world, at 6%, which is far lower than it was in any year under the previous Labour Government.

[Tom Brake (Carshalton and Wallington) (LD)]

T1. If he will make a statement on his departmental responsibilities.

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[John Cryer (Leyton and Wanstead) (Lab)]

What action are the Government taking to tackle payroll and umbrella companies, some of which—not all—are used to perpetuate bogus self-employment and undermine terms and conditions?

[The Financial Secretary to the Treasury (Mel Stride)]

We are looking very closely at this policy area, not least in respect of the Matthew Taylor review of the different ways in which individuals choose to work. The Government’s overriding objective is to make sure that the way an individual works is reflected in the way they are taxed, and that they are taxed properly.

[Nigel Huddleston (Mid Worcestershire) (Con)]

T4. Some of my constituents have reported ongoing confusion about child benefit. Some who admit that they have claimed child benefit inadvertently have not been told of the money that they owe to HMRC until interest has accumulated for as long as five years. What more can HMRC do to communicate errors more quickly?

[Mel Stride]

My hon. Friend raises an important point. I can reassure him that HMRC has written to a total of 800,000 people to inform them of the issue he has raised, which is also set out and made clear on the very first page of the child benefit application form. I can also reassure him that we will review this policy area in the current period to see how we can make changes going forward.

[Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)]

T6. The Royal Bank of Scotland branch in Wick in my constituency has now closed, and a sad sight that is. Last week, we heard that the Homebase branch is also to close. The Chancellor may say that we have to accept change and live with it, but these are hammer blows for a community such as Wick, and I begin to wonder when we will see tumbleweed blowing down the street. Does the Chancellor agree that we should carry out some kind of assessment of the impact of such closures on the local economies of places like Wick and Caithness, before it is too late?

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[Damien Moore (Southport) (Con)]

T7. Will my right hon. Friend tell the House how much additional tax revenue has been secured since 2010 by Her Majesty’s Revenue and Customs through tackling avoidance, evasion and non-compliance, and will he confirm that this policy will continue to exist in the Government?

[Mel Stride]

I am very pleased to inform my hon. Friend that we have raised and protected £175 billion since 2010 by clamping down on evasion, avoidance and non-compliance. That comes as a direct result of investing in HMRC to the tune of £2 billion, and has resulted in the lowest tax gap in the world.

[Several hon. Members rose—]

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[Craig Mackinlay (South Thanet) (Con)]

T8. With the full phasing in of the residents’ nil-rate band for inheritance tax by 2020, a couple will potentially be able to leave £1 million free of inheritance tax to descendants. That is all very welcome, but having worked through the legislation in a real example, it seems unduly complex. Will my right hon. Friend now consider simplifying the law to make the overall IHT allowance a simple, no-nonsense £500,000 each and remove the complexity of the residents’ nil-rate band rules?

[Mel Stride]

My hon. Friend talks about complexity. The Office for Tax Simplification is looking into the way in which inheritance tax and the regime operate. Changing the way that tax reliefs operate in the way that he describes would add very significant cost. However, we do, of course, keep all taxes under review.

[Mrs Emma Lewell-Buck (South Shields) (Lab)]

The TUC estimates that the number of working households in poverty has risen by 1 million since 2010. Inaction on low-paid, insecure work and punitive welfare reform measures have led to record numbers of people accessing food banks. A responsible Government would measure food insecurity to create policies that end hunger. My Food Insecurity Bill does that. Why will the Government not back it?

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[Kirstene Hair (Angus) (Con)]

Research has shown that those who live in rural areas are getting hit harder at the fuel pump than those in urban areas. Can my right hon. Friend update me on what his Department is doing to ensure that motorists in Angus, and indeed across the United Kingdom, have their taxes cut?

[Mel Stride]

I am clearly not going to speculate about future tax changes from the Dispatch Box this morning, but I point out that we have frozen fuel duty for eight successive years at a cost to the Exchequer of over £40 billion.

[Bambos Charalambous (Enfield, Southgate) (Lab)]

A Home Affairs Committee report published in summer 2016 found that the suspicious activity reporting system intended for use by the banks to crack down on money laundering was not fit for purpose. The Committee demanded immediate reform, but the Government stated that they would implement the reforms only by 2018. In the light of the Foreign Affairs Committee report on Russia, criminal financing and the UK, will the Minister immediately bring forward plans to reform and improve the system, as was recommended two whole years ago?

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[Alison Thewliss (Glasgow Central) (SNP)]

Several of my constituents who are highly skilled migrants made entirely legitimate and timely changes to their tax returns and are now facing removal by the Home Office under immigration rule 322(5). Will a Treasury Minister confirm that people should make entirely legitimate changes to their tax returns? Will they also have a conversation with their Home Office colleagues to prevent these highly skilled contributors from being removed from the UK?

[Mel Stride]

The answer to the hon. Lady’s question is that people should clearly continue to make appropriate changes to their tax returns. I reassure her and the House that Treasury Ministers and HMRC officials are working closely across Government—particularly with the Home Office—on the issues that she raised in order to ensure that we get these matters right.

[Yvonne Fovargue (Makerfield) (Lab)]

The Government have decided not to proceed with the legislation that they committed to bring forward to protect consumers from the rip-off practice of logbook loans, despite the Bill being prepared and ready to go through the accelerated procedure. Will the Minister explain why he is prepared to allow innocent buyers to continue to be exploited through this outdated, misused legislation?

Draft Double Taxation Relief (Base Erosion and Profit Shifting) Order 2018 Draft Double Taxation Relief (Switzerland) Order 2018 Draft Double Taxation Relief and International Tax Enforcement (Uzbekistan) Order 2018

Mel Stride Excerpts

Wednesday 9th May 2018 General Committees

[The Financial Secretary to the Treasury (Mel Stride)]

I beg to move,

That the Committee has considered the draft Double Taxation Relief (Base Erosion and Profit Shifting) Order 2018.

[The Chair]

With this it will be convenient to consider the draft Double Taxation Relief (Switzerland) Order 2018 and the draft Double Taxation Relief and International Tax Enforcement (Uzbekistan) Order 2018.

[Mel Stride]

It is a pleasure to serve under your chairmanship again, Mr Hosie. The base erosion and profit shifting—BEPS—order brings into effect the multilateral convention to implement tax treaty-related measures to prevent base erosion and profit shifting, which is commonly and thankfully referred to simply as the multilateral instrument. The orders in respect to Switzerland and Uzbekistan amend our existing double taxation agreements with those countries. All the instruments bolster the UK’s network of international tax arrangements and deepen our commitment to avoiding double taxation while preventing tax evasion and avoidance.

Double taxation agreements—DTAs—are bilateral agreements between the UK and other countries that aim to ensure that profits, income and gains are taxed only once. They develop the UK’s economic relationship with other countries and vice versa. DTAs provide critical certainty for cross-border firms and enhance co-operation in tax matters to stimulate economic growth and prevent tax avoidance.

The OECD/G20 base erosion and profit shifting project recommends a number of changes to DTAs, including the introduction of minimum standards to prevent tax avoidance by those who abuse tax treaties, and measures to improve the resolution of tax disputes. In addition, it recommends action to prevent so-called hybrid mismatches and the avoidance of permanent establishment status.

To enable those enhancements to DTAs to be made as soon as possible, more than 100 countries in a group chaired by the UK drew up the multilateral instrument. The group adopted the text of the MLI in November 2016 and it has now been signed by 78 jurisdictions, including the UK. It is in the process of being ratified by those jurisdictions. Individual DTAs will be modified by the MLI only if both jurisdictions have signed it and have given notice that they wish the DTA to be covered by it. The UK intends the MLI to cover all our DTAs that are agreements under international law and that do not already include provisions that we want from the MLI.

Except in relation to certain minimum standards, parties implementing the MLI are also permitted to reserve against provisions. If either party to the DTA has reserved against an MLI provision, that provision cannot modify the DTA. Following consultation, the UK proposes to adopt those provisions that are a proportionate and effective defence against the abuse of tax treaties, in addition to the minimum standard provisions. We intend to reserve against provisions that have a disproportionate effect on commercial transactions or that are unnecessary in the light of other measures taken to address the misuse of the international tax framework.

At the time of signing the MLI, the UK submitted its list of reservations to the OECD, which was published on the OECD’s website. Some minor amendments to that list have also been published on gov.uk. Those amendments relate to bilateral arrangements that have been agreed since the submission of our original list of reservations.

To ensure complete clarity for taxpayers, HMRC will prepare consolidated versions of treaties showing how they have been modified by the MLI and will publish those in good time before the modifications take effect. Where possible, it is our intention to agree those texts with our treaty partners. The order ensures that the UK can use the MLI to implement our commitments under the BEPS project and that our DTAs contain robust and proportionate defences against tax avoidance to the benefit of the UK and our treaty partners.

Let me now turn to the other two orders, in respect of Switzerland and Uzbekistan. The Switzerland order amends our existing 1977 DTA. To give effect to DTAs, the Swiss Government transpose them directly into domestic law, so it is much more straightforward for them to amend their law by amending the existing DTA, rather than by adopting the MLI separately. As a result, we agreed with Switzerland to implement modifications that would have been made by the MLI through this order.

For Uzbekistan, the order implements many of the provisions available under the MLI, including minimum standards on preventing treaty abuse and improving dispute resolution. In addition, the order provides for a general update to the existing text to reflect changes to the OECD model tax treaty and the domestic laws of the UK and Uzbekistan. Importantly, the changes remove a barrier to UK companies claiming benefits in respect of dividends from Uzbekistan created by the introduction of a dividend exemption regime in the United Kingdom. That will enhance the investment climate for UK businesses in Uzbekistan, to the benefit of both countries.

The orders enhance our commitment to tackling international tax avoidance and evasion. They also strengthen the integrity of our network of DTAs and remove barriers to investment by UK businesses. I commend the orders to the Committee.

--- Later in debate ---

[Mel Stride]

I thank the hon. Member for Oxford East. It is not long since we jousted and debated, and it is good to be back doing exactly that. I welcome the overarching support for the MLI in her early remarks, particularly in respect of tax avoidance and the double taxation avoidance measures, although I understand that she has some issues around arbitration, which I will come to in a moment. I too have fond memories of clause 32 of the Finance Bill last year, which provided the powers under which the MLI is being brought forward for consideration.

The hon. Lady posed a large number of questions and I will attempt to answer as many as I can—I was busy thinking about the answers to some when the next two or three arrived in train, so if I do not cover everything, I would of course be very happy to take a representation from the hon. Lady after the Committee and look at them in more detail.

On advertising and the reservations that we might be seeking from the MLI, we have provided information on the OECD website and subsequent changes appeared on the gov.uk website, so the information is in the public domain. We will be required to provide that information to the OECD some four months before this measure comes into effect and it in turn will advertise the reserved elements that we decide on at that time.

The hon. Lady asked why we do not include all the DTAs. She is absolutely right that the UK has a large number—from memory, I think it is around 130—and about 121 will be potentially covered by this measure. The answer is that, in some cases, the DTAs largely conform to the changes that would be introduced were they to be subject to the MLI. In some cases, it is not necessary, as our treaty contains substantial provisions. Our first-time DTA with Colombia would be one example.

The hon. Lady asked whether Switzerland taking these tax changes directly into domestic law, rather than less efficiently through the MLI, was a unique circumstance. I believe that it is relatively unique—my officials have just nodded. It is something of an unusual situation. That is the reason that both countries have decided to approach the matter in this way.

The hon. Lady mentioned permanent establishments and various related issues, asking why we were reserving against those particular matters. The general response to that and like matters is that the Government do not believe that they would have any major material impact on what happens with the taxation of revenues from one country coming back into the United Kingdom. Of course, those measures would bring with them various administrative burdens on business, which the Government always seek to minimise where possible.

The hon. Lady raised the issue of consultation on digital taxation, slightly at a tangent to the matter at hand. I would welcome her intervention if I have misunderstood her, but I think she was referring to our consultation on the taxation of businesses making profits via digital platforms.

[Anneliese Dodds]

I am grateful to the Minister for seeking clarification. The reason I mentioned it was that, with the adoption of the MLI, we have what many would view as quite a lax approach to defining permanent establishments, compared with article 12, if we had adopted that. However, in that consultation, the Government seemed to suggest a stricter approach. There seems to be a contradiction, which in itself is contradicted by what the Chancellor said at the informal ECOFIN—he seemed to say that we need to have US agreement before we can have stricter rules.

[Mel Stride]

I thank the hon. Lady for that clarification. I take this in two parts. These are different situations. When it comes to taxation of profits derived from digital platforms, be they social media, search engines or online marketplaces, the critical thing is to ensure that we tax the value that accrues to the interaction of consumers with those marketplaces. We are working with the OECD and the European Union, as the hon. Lady pointed out, to come up with an appropriate way to address that particular challenge of the current international taxation regime. As to the Chancellor’s remarks about whether we might go it alone or have to wait for America, I am not entirely sure that he said what was reported. That is the information I received, although I did notice those comments in the press, as did the hon. Lady.

We have debated mandatory arbitration before. The essential point is that, in order to enter into a DTA, both sides have to agree that it is an appropriate treaty to enter. Both sides have to be comfortable in the round with it. There is no circumstance in which the United Kingdom could therefore force a country against its will to enter into agreement with mandatory binding arbitration.

[Anneliese Dodds]

Surely it would be helpful, given the differences in resource that could none the less be provided between developing and developed nations, for the Government to carry out that analysis into the use of mandatory binding arbitration, and whether it exemplifies policy clearance for development. It would be wonderful to hear a Treasury Minister say that the Government might consider adopting this and doing so explicitly.

[Mel Stride]

The Government’s view is that mandatory binding arbitration is a very useful element of these agreements. In the absence of that, the process undertaken might be ultimately inconclusive. In order to ensure that these agreements work efficiently, we believe there is great merit to that approach.

I lastly turn to parliamentary scrutiny. Matters reserved against will be for the Government to determine in time although, as I have indicated, we have already put out preliminary suggestions of what we will do. As time goes forward, this or any other Government may decide to remove some of those reserved powers. It is down to this Committee and this moment to take a decision on whether in the round all those possible changes are agreed to or not. On that basis, I urge that we move forward with the recommendations.

Question put and agreed to.

Resolved,

That the Committee has considered the draft Double Taxation Relief (Base Erosion and Profit Shifting) Order 2018.

DRAFT DOUBLE TAXATION RELIEF (SWITZERLAND) ORDER 2018

Resolved,

That the Committee has considered the draft Double Taxation (Switzerland) Order 2018.—(Mel Stride.)

DRAFT DOUBLE TAXATION RELIEF AND INTERNATIONAL TAX ENFORCEMENT (UZBEKISTAN) ORDER 2018

Resolved,

That the Committee has considered the draft Double Taxation Relief and International Tax Enforcement (Uzbekistan) Order 2018.—(Mel Stride.)

Stamp Duty Land Tax

Mel Stride Excerpts

Thursday 26th April 2018 Commons Chamber

[The Financial Secretary to the Treasury (Mel Stride)]

With your permission, Mr Speaker, I will make a statement on the quarterly stamp duty land tax statistics published this morning.

As right hon. and hon. Members are aware, the Government announced at autumn Budget 2017 that we were introducing stamp duty relief for first-time buyers, unlocking invaluable support for first-home buyers up and down the country. The relief cuts stamp duty for first-time buyers who purchase a property for less than £500,000. Those who purchase a home for between £300,000 and £500,000 will save £5,000. The relief abolishes stamp duty for first-time buyers who purchase a property for £300,000 or less, and more than 80% of first-time buyers will not pay any stamp duty as a consequence. Although we want to help all buyers, the Government consider that it is fair to target the support where it is needed most. The Government therefore think it only right to reduce the up-front costs that cash-constrained first-time buyers need to pay, giving them much-needed support with their first purchase.

The quarterly stamp duty statistics published this morning reveal, for the first time, the tangible impact of first-time buyers relief. I am pleased to announce that between the coming into effect of the relief on Budget day on 22 November last year and the end of March 2018, a significant 69,000 first-time buyers benefited from it. That figure represents nearly 20% of all residential transactions, and it is broadly in line with the official estimate at autumn Budget 2017.

Over the next five years, the relief is projected to help more than 1 million first-time buyers to get on to the housing ladder. It is part of a broader housing package announced by the Government at autumn Budget last year—an ambitious package of new policies designed to tackle the housing challenge—that consists of wide-ranging planning reform, additional spending and a new agency, Homes England, to work more effectively with the housing market.

Although we are firmly on track to raise annual housing supply to its highest level since the 1970s, we are aware that housing is a complex issue and that there is no single solution to the challenge. We know, for example, that we need to support the private sector and local authorities to convert planning permissions into homes built. As my right hon. Friend the Chancellor set out at spring statement, the Treasury and my hon. Friend the Minister for Housing are working closely together to ensure that that happens. Government will be working with 44 local authorities that have bid into the £4.1 billion housing infrastructure fund to unlock homes in areas of high demand.

We are going further; over the next five years we have committed at least £44 billion of capital funding, loans and guarantees to support the housing market. We will more than double the size of the housing growth partnership with Lloyds banking group to £220 million, to help to provide additional finance for small builders. London will receive an additional £1.7 billion to deliver a further 26,000 affordable homes, including homes for social rent. That will take total affordable housing delivery in London to more than 116,000 by the end of 2021-22.

Housing stock is on track to be higher than ever before during the upcoming decade, and the Government are committed to supporting those people who aspire to make their dream of home ownership a reality sooner rather than later. That is why measures such as the stamp duty relief for first-time buyers are so important. More than 95% of first-time buyers paying stamp duty will benefit from the relief.

The Government are committed to ensuring that everyone in this country can afford to buy a home if they choose to do so, and the Government have taken steps to make home ownership a reality for many more people. Targeted policies such as the first home buyers stamp duty relief are supported by other robust, ambitious and groundbreaking reforms to housing policy in the United Kingdom. Together, they will transform new home creation for years to come.

[Anneliese Dodds (Oxford East) (Lab/Co-op)]

The Government appear to have arranged to give this statement so that they can pat themselves on the back, while reducing the amount of time spent on customs union with the EU. I appreciate that that issue may be controversial—albeit only for the Government; every other actor seems to feel that some kind of customs union is a good idea—but that should not prevent democracy from running its course on the matter. The Government’s cunning plan to introduce the statement today has spectacularly backfired, because rather than offering an opportunity for congratulation and digression, it has merely provided a chance to indicate the Government’s failure to deal with the housing crisis.

The Government have said—we heard it again just now—that their stamp duty cut is intended to back home ownership, but home ownership has fallen to a 30-year low under this Government. They say that the cut was intended to help first-time buyers, but there are now a million fewer under-45s who own their own home than there were in 2010. Home ownership was up by some 1 million under Labour, but it has fallen since 2010 under Conservative Ministers as part of this Government’s eight years of failure on housing.

At the root of that failure is an inability to increase the supply of genuinely affordable housing. I do not need to set out how the stamp duty cut has failed to deal with that issue; I will use the words of the Office for Budget Responsibility, which stated that

“the main gainers from the policy are people who already own property,”

not first-time buyers. In contrast, measures from the Government to increase supply are woefully inadequate. To take just one example, local authorities will only be able to bid into a pot in order to borrow to build—a farcical situation when demand is so pressing. The number of genuinely affordable homes is declining, not increasing, under this Government.

We parliamentarians see all around us the worst impact of the Government’s failure on housing, whether it is on the people we walk past who are rough sleeping in the city of London—rough sleeping is now at record levels here, as it is in many other cities—or the 120,000 children who are living in temporary accommodation, and whose families come to see us in our constituency surgeries. I am keen to hear the Minister’s response to the question of whether he has commissioned research into the impact of this flagship measure on prices, in the absence of decisive measures to increase affordable supply.

It would be helpful to hear from the Minister how Her Majesty’s Revenue and Customs is dealing with what appears to be a quadrupling of money-back claims related to a malfunctioning online calculator. What HMRC rather amusingly—it is not amusing for the people affected—calls a “ready reckoner” appears to be anything but, in view of its failure to take into account relevant stamp duty discounts. I would be grateful to hear from the Minister when it will be amended so that it properly reflects mixed-use properties.

On the subject of confusion over what stamp duty should be paid, it would be good to hear from the Minister about what the Government are doing to deal with those who make bulk purchases of individual flats, thus avoiding the buy-to-let surcharge. Let us imagine, as a hypothetical example, someone purchasing seven flats, worth between £450,000 and £1 million each, in a seaside town. They might try to do so using their own company, rather than as an individual. If so, I would hope that they registered the beneficial ownership of that company with Companies House—a matter that I look forward to debating with the Minister next week in our consideration of the Sanctions and Anti-Money Laundering Bill. Aside from beneficial ownership, however, by undertaking such a bulk purchase, our imaginary, hypothetical person would avoid a significant amount of stamp duty—say, around £100,000—which could have gone into our cash-strapped NHS. Can the Minister please inform the House what he is doing to deal with that loophole?

Above all, can we please have genuine action from the Government to deal with our appalling housing crisis— we parliamentarians cannot fail to notice that it is causing much misery to our constituents and blighting the lives of many children—rather than misplaced self-congratulation?

[Mel Stride]

I thank the hon. Lady for her contribution and her questions. She opened by asking what was the motivation for giving this statement today. I reassure her that it is that we believe that housing policy is one of the great issues of our age and we are determined to get on top of it, as the Chancellor set out in the autumn Budget. That is why—to move on to her question about how we will drive up the level of home ownership—the Chancellor made it clear at Budget that a further £15 billion would be made available, taking us up to £44 billion over the next five years, to drive up the supply of new homes. That is alongside planning changes and the review that my right hon. Friend the Member for West Dorset (Sir Oliver Letwin) is undertaking to ensure that where planning permission is granted, houses are actually built. I suggest that we look at our record. Last year there were 217,000 new properties in this country, which is the largest figure since 2005-06. That indicates that our move towards having 300,000 more properties on the market by the middle of the next decade is realistic.

The hon. Lady asked specific questions about the effect of stamp duty relief on house prices, and she will know that the OBR forecast a small impact of 0.3%. She will also know that that projection did not take into account the various supply-side measures that I have mentioned, and other measures that we have undertaken. She asked about the specific case of properties bought within a corporate wrapper, and I hope she will be familiar with the annual tax on enveloped dwellings, which stands at 15% if the property is put into the wrapper. Indeed, on the basis she outlined where a property is then rented out, ongoing charges recruit tax in that way.

[Kevin Hollinrake (Thirsk and Malton) (Con)]

May I draw the attention of the House to my entry in the Register of Members’ Financial Interests? I welcome the Minister’s statement, and express my support for stamp duty relief for first-time buyers. That measure exists to reverse the trend of declining home ownership that began in 2003, and it is the right thing to do. Will the Minister confirm the commitment made in the autumn Budget to increase the amount of housing supply delivered by small and medium-sized developers, as they are a crucial part of solving the housing crisis in the UK?

[Mr Speaker]

The hon. Gentleman should not undersell himself; he is an illustrious estate agent, and I have now drawn wider attention to that important fact.

[Mel Stride]

My hon. Friend is right to mention smaller builders, and we recognise the importance of ensuring that finance is available to them. They play a key role in providing new housing, and I confirm that the £630 million announced in the Budget for the small-site infrastructure fund will be going ahead, as will measures that we have taken to support bank lending specifically to smaller builders.

[Tom Brake (Carshalton and Wallington) (LD)]

If the Government are serious about boosting housing provision, will the Minister join me in congratulating councils such as Sutton Council, which is building council homes for the first time in 30 years? What more can the Minister do to support it to provide homes that are genuinely affordable?

[Mel Stride]

I have already, at length, gone through the various measures we have taken to support increased housing supply. Given that I have been urged to stray towards brevity rather than to respond at length, I will leave it there, other than to say that we will have our foot firmly to the floor. When it comes to council housing, we have of course built twice as much since 2010 than the Labour Government built during their 13 years in office.

[Mr Speaker]

I say to the House that I have not detected much beetling taking place. I exhorted colleagues to beetle across to the Chamber if they wished to take part in the next debate, but by my reckoning, fewer than half the would-be contributors to that debate have landed in the Chamber. I hope there will be some beetling or toddling of a hasty kind pretty soon.

--- Later in debate ---

[Antoinette Sandbach (Eddisbury) (Con)]

Hundreds of families in my constituency have benefited from Help to Buy, and I very much welcome the changes in stamp duty. How many people in the north-west have benefited from those changes?

[Mel Stride]

I thank my hon. Friend for her question. Mr Speaker, at one point you wanted me to respond rather quickly. If you now wish me to go a little more slowly to allow others to attend the Chamber, I am at your disposal.

[Mr Speaker]

That is extremely accommodating of the right hon. Gentleman, and I would expect no less of him. He can rest assured that the next debate will start no later than 12.30 pm, and preferably earlier, notwithstanding the fact that his own erudition is endlessly intoxicating.

[Mel Stride]

Thank you, Mr Speaker. My hon. Friend asked about the north-west, where 6,900 individuals benefited from stamp duty relief between 22 November and 31 March this year.

[Mr Speaker]

Things are hotting up now.

[Dr David Drew (Stroud) (Lab/Co-op)]

My area has many thousands of extant planning permissions that have yet to be brought forward. How will the Treasury try to get those planning permissions to a state where we can build houses? Is it about time that we had a sensible debate on land value taxation?

[Mel Stride]

The hon. Gentleman raises an important point: there is little point in land that has planning consent if properties are not swiftly built on it. My right hon. Friend the Member for West Dorset (Sir Oliver Letwin) is conducting a review of exactly that matter, and we will come to the House in due course with our proposals.

[Jeremy Quin (Horsham) (Con)]

Horsham has very high house price multiples, and I welcome the Government’s efforts to help first-time buyers with that vital first step on the ladder. I also welcome the impact of that policy from a macroeconomic perspective. The Financial Policy Committee at the Bank of England has talked about broadening home ownership as a way of encouraging and improving financial stability. That should have an important impact, which I also welcome.

[Mel Stride]

I thank my hon. Friend for his kind words. As well as the many advantages and benefits of home ownership for individuals, society and the economy, his point about financial stability is right and another reason why the Government are determined to make progress.

[Mr Speaker]

Order. As colleagues will know if they have studied the Annunciator, the second of the two debates scheduled for this afternoon has been withdrawn, so we have simply one debate on customs and borders. Members will recall that when the House debated estimates on 26 and 27 February, the motions were proposed by the Backbench Business Committee under an arrangement recommended by the Procedure Committee. Today, we have a complementary proceeding of a Backbench Business day in which the motion has been proposed by the Liaison Committee.

Customs and Borders

Mel Stride Excerpts

Thursday 26th April 2018 Commons Chamber

[The Financial Secretary to the Treasury (Mel Stride)]

I congratulate the right hon. Member for Normanton, Pontefract and Castleford (Yvette Cooper) on securing today’s extremely important debate. I thank all Members for their passionate, heartfelt and informed contributions. I do not intend to go through all the contributions, given their volume and the fact I would like to make sure I leave time for any Member who wishes to intervene on me to ask any questions or to make any points. If I have time, I will leave a minute for the right hon. Lady at the end.

A number of important points have been made in this debate. First and foremost is the matter of Northern Ireland and its Irish border. Some Members have suggested that, in fact, we are prepared to jettison the Good Friday agreement, to undermine it in some way or not to stand up for it, which is certainly not the case. We remain entirely committed to the Good Friday agreement, as we do to having no hard border between the Irish Republic and Northern Ireland and, indeed, no effective customs border down the Irish sea.

[Lady Hermon]

Will the Minister give way?

[Mel Stride]

I give way to my hon. Friend.

[Lady Hermon]

Thank you. It is nice that the Minister regards me as an hon. Friend.

I gently say to the Minister that it would be very helpful in a sensitive situation if the Prime Minister would stop repeating the mantra that no deal is better than a bad deal, because it directly contradicts her pledge, sincerely meant, to uphold the principles of the Good Friday agreement, which I believe she does and intends to do. However, there is a contradiction there, and I am sure the Minister agrees that we do not want to see any risk of a hard border with Ireland. That would lead to violence along the border.

[Mel Stride]

The position of the Prime Minister and the Government is that we are confident of a deal. In that context, this issue of no deal is not particularly pertinent.

Other important points have been raised. I think everybody recognises the importance of having as frictionless a border as possible. Of course, it is recognised that we would achieve that if we stayed within the customs union or a customs union, which is de facto the same thing, but that is not the same as suggesting that there are not alternative arrangements—I will discuss those alternative arrangements in a moment—that would achieve as good as the same thing as a frictionless border.

Many Members today have raised the importance of being free as a nation to go out and negotiate our own free trade arrangements, which of course means that we need to leave the customs union.

[Kirsty Blackman]

Does the Financial Secretary believe the trade agreements we negotiate could possibly be better than the trade agreements we currently have and would continue to have as a member of the EU?

[Mel Stride]

As the hon. Lady knows, we are currently working on transferring the EU’s agreements with third-world countries. Of course, in future we will be free to strike our own FTAs with other countries, which we are currently prohibited from doing.

It is good to hear the hon. Member for Bootle (Peter Dowd) agree with Margaret Thatcher at long last. She stood for free markets, free trade and fiscal responsibility, and I look forward to hearing more of that from him in the years to come.

I have just been informed that I must leave two minutes for the right hon. Member for Normanton, Pontefract and Castleford, which I will endeavour to do—[Interruption]— although she is generously saying that one minute will be enough.

The hon. Member for Bootle suggested that the Government’s position is confused, although I am not sure whether he was thinking of his own position when he said that. The reality is that the Labour party has a classic fudge on the customs union. It wants to tell everybody that we can somehow be in the customs union while not being a rule taker—that we can somehow negotiate to be in the room when FTAs between the EU and other countries are negotiated. The Labour party accuses us of seeking to cherry-pick, but by its own logic, it is quite clear that this is just not a realistic possibility.

The hon. Gentleman specifically mentioned clause 31 of the Taxation (Cross-border Trade) Bill, which will indeed permit the UK to enter into a customs union with another customs union or territory. That is something we will almost certainly wish to do with our Crown dependencies. The clause will therefore not be relevant to the European Union after our departure. The Government are therefore clear that when we leave the European Union we will leave its customs union. That is a matter of fact. The Government have also been clear that forming a new customs union with the EU is not compatible with a meaningful independent trade policy, so we will not be doing that. Outside the EU and a customs union, the UK will be able to sign its own trade deals with our partners around the world.

[Mr Vaizey]

Now that the Minister has been un-shelled—he is doing very well—could he name one trade deal and tell us when it will be signed?

[Mel Stride]

An ingenious question; I would expect no less. As my right hon. Friend will know, we are not able to enter into and sign such deals until we have left the EU and, indeed, we are beyond the implementation period. Of course we are working actively on these deals, but saying that does not mean that we will no longer need a deep and special partnership with our nearest trading partner. The EU is still and will remain a significant marketplace for us. Our markets are deeply interconnected, and that will remain the case for the future. That is why the Prime Minister set out the Government’s intention to negotiate the broadest and deepest possible economic partnership covering more sectors and co-operating more fully than any free trade agreement anywhere in the world and recognising the point of deep convergence from which both sides begin.

In leaving the EU customs union, we will be guided by what delivers the greatest economic advantage to the UK, framed by three strategic objectives. The first is continued UK-EU trade that is as frictionless as possible. The second is avoiding a hard border on the island of Ireland. The third is establishing an independent international trade policy.

The Government have already set out two options for our future customs arrangements with the EU that most closely meet these objectives. One is a new customs partnership. In this model, the UK would mirror the EU’s requirements at our border for imports from the rest of the world with a final destination in the EU. This would mean applying the same tariffs and rules of origin as the EU for those goods. By following this approach, we would know that all goods entering the EU via the UK pay the right EU duties, removing the need for customs processes at the UK-EU border.

The other option is a highly streamlined customs arrangement. This approach would involve the introduction of formal customs processes between the UK and the EU, driven by technology, to streamline and enable this model. However, the UK would look to implement a range of measures—both negotiated and unilateral—to minimise friction, together with specific provisions for Northern Ireland. The precise form of any new customs arrangements will of course be subject to negotiation, and we are pursuing both approaches vigorously with our European friends. I look forward to further progress in these talks.

For the reasons I have given, the Government cannot support the motion before us today. As we prepare to leave the European Union, a significant opportunity awaits us—the opportunity to promote our national interest above all else and the opportunity to shape our future trading policy—because when the people of this country voted to leave the European Union, they voted for democratic self-government and to take control of our future trading arrangements. Moving forward, we will seek to maximise our trade, across all countries and markets as we prepare for the challenges and the exciting opportunities ahead, confident as an independent trading nation and proud of our long history as a global champion of free trade.

Oral Answers to Questions

Mel Stride Excerpts

Tuesday 17th April 2018 Commons Chamber

[Mr Laurence Robertson (Tewkesbury) (Con)]

2. If he will reduce taxes on small businesses.

[The Financial Secretary to the Treasury (Mel Stride)]

I thank my hon. Friend for his question. The Government are bearing down tirelessly on the tax burden on businesses of all sizes, reducing corporation tax from 28% for large companies in 2010 to 19% today, and for small businesses from 21% to 19%. We will go still further, reducing the burden to 17% by 2020. For unincorporated businesses, we are, of course, increasing the personal allowance, in the previous Budget, to £11,850. That will increase further to £12,500 in 2020—further relief to many small businesses.

[Mr Robertson]

I thank the Minister for that encouraging answer. Businesses are, of course, unpaid tax collectors for the Exchequer and the Federation of Small Businesses recently estimated that businesses spend, on average, three working weeks a year on tax compliance. Is there anything further that the Minister can do to reduce that kind of expensive burden on businesses?

[Mel Stride]

I thank my hon. Friend for raising the FSB’s report. I have not only read it, but met the FSB to discuss the report in detail. I highlight to the House two of its important recommendations: one is around better guidance on taxation, and I have tasked officials on that mission within HMRC; and the second is Making Tax Digital, which we are rolling out for VAT-registered companies in 2019. The report states that this

“presents an opportunity to simplify and speed up tax compliance.”

[Ruth George (High Peak) (Lab)]

Is the Minister not concerned that the Office for Budget Responsibility report into welfare trends from January this year estimates that £1.5 billion of support for small businesses will be taken from them through the minimum income floor in universal credit? The Select Committee on Work and Pensions heard that 70% of small businesses currently last for 18 months, but that that will reduce to 20% for those on universal credit. Small businesses will be strangled at birth.

[Mel Stride]

The hon. Lady neglects to mention the fact that small business confidence in the UK is now in positive territory for the first time in many years. We have gone to great lengths within the tax system, as I have just explained, to reduce the burden on small businesses. We rolled out £9 billion of business rates relief in the 2016 Budget and a further £2.3 billion of relief in the autumn Budget last year. We will continue to be on the side of small businesses.

[Derek Thomas (St Ives) (Con)]

A significant number of businesses in west Cornwall and the constituency of St Ives, which I represent, are facing extreme hardship because of business rate increases in 2017 and 2018. This is becoming a burden that is too great for them to bear. What immediate help can the Minister make available to these hard-working business owners?

[Mel Stride]

As I have just identified, the Government have done a huge amount to reduce the burden of business rates. We recognise the important fact that these taxes need to be paid, irrespective of whether businesses are profitable or otherwise. That is why we have gone to such lengths, providing £9 billion of relief in 2016, including transitional relief for those facing the largest potential increases in business rates, and a further £2.3 billion by way of bringing forward by two years the change in the indexation of business rates from retail prices index to consumer prices index, saving businesses £2.3 billion over the next few years.

[Rachael Maskell (York Central) (Lab/Co-op)]

Business rates are really hitting businesses in York, particularly in the retail sector. This is having a huge impact on our city. On 8 March 2017, the Chancellor promised this House a complete review of business rates, yet we have only seen sticking plasters from the Government. When will that review begin?

[Mel Stride]

The business rates review is being undertaken by the Ministry of Housing, Communities and Local Government.

[Andrea Jenkyns (Morley and Outwood) (Con)]

3. What fiscal steps his Department is taking to increase productivity.

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[Mr Alister Jack (Dumfries and Galloway) (Con)]

9. What assessment he has made of the effect of the recent reduction in corporation tax on employment and wages.

[The Financial Secretary to the Treasury (Mel Stride)]

There can be no doubt that this Government’s record on reducing corporation tax from 28% in 2010 to 19% now, and further on down to 17% in 2020, has driven growth, kept prices down, pushed wages up and, indeed, led to more employment. Since 2010, we have seen more than 3 million more people in employment, and, as the Chief Secretary to the Treasury has just outlined, the lowest unemployment since 1975.

[Mr Jack]

Successful businesses create jobs and pay taxes. What steps are the Government taking to back businesses that play by the rules?

[Mel Stride]

My hon. Friend uses the expression “play by the rules”. I should make it very clear to the House that those that do not play by the rules will be clamped down on by Her Majesty’s Revenue and Customs. We have brought in £175 billion in respect of clamping down on avoidance, evasion and non-compliance since 2010. We have, as my right hon. Friend the Chancellor has outlined, the lowest tax gap in our history, at 6%. Those who play by the rules will benefit from our pro-business policies: bringing taxes down, providing relief on business rates, and other measures such as the employment allowance, worth £3,000 for the first employee as a relief on national insurance contributions.

[Alison McGovern (Wirral South) (Lab)]

When it comes to employment and wages, and the impact that corporation tax cuts have had, we have heard a lot of crowing from Ministers this morning, but we all know that our economy is wildly different, depending on where people live. Has the Minister asked for a distributional analysis of the impacts that he has just been talking about?

[Mel Stride]

We have debated at great length the issue of distributional analysis, in this Chamber and around the Finance Bill and other measures. The hon. Lady will know that all tax measures are subject to TINs and to various assessments. We are also bound by the Equality Act 2010 when we take decisions in respect of taxation. As a Minister, I can assure her that I take my duties in that respect extremely seriously.

[Colin Clark (Gordon) (Con)]

Businesses in my constituency welcome the cut in corporation tax, but does not my right hon. Friend share my concern that businesses in Gordon are being damaged by punitive business rates and the highest income tax rates in the United Kingdom?

[Mel Stride]

My hon. Friend raises an important issue, which is probably best listened to very carefully by some of those on the Opposition Benches. I can only speak for the UK Government here in this House, and we will continue to be on the side of businesses, small and large, to ensure that their tax burden is as low as possible.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

Lines ag and bg of the spring 2017 Budget predicted that the cuts in corporation tax would cost the Treasury over £24 billion by 2022. If the Treasury had had that money to invest in infrastructure and construction, how many well paid construction jobs could the money have created?

[Mel Stride]

Let me make two simple points. First, corporation tax cuts are clearly to the benefit of businesses who employ people, create wealth and generate the taxes we need to fund our vital public services. Secondly, we have cut corporation tax from 28% to 19% since 2010, and the corporate tax take has risen by 50%.

[Mr Speaker]

A moment ago the Financial Secretary was banging on about TIMS. I was not informed about this matter, but the Clerk has consulted his scholarly cranium and he tells me that it stands for Treasury information management systems.

[Mel Stride]

Tax impact notes, Mr Speaker.

[Mr Speaker]

Oh, TINs! Well, I am sure everybody attending to our proceedings was perfectly well aware of what the right hon. Gentleman had in mind. I am sure I was in a minority of one in not knowing. And what are those pigs I see flying in front of my very eyes?

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[Dr Paul Williams (Stockton South) (Lab)]

11. What progress has been made on implementing the Building our Future programme.

[The Financial Secretary to the Treasury (Mel Stride)]

Progress has been excellent on the Building our Future programme. We have now secured locations for 12 of the 13 regional hubs and negotiations are continuing on the final site.

[Dr Williams]

The HMRC office in Stockton South is closing. Hundreds of staff are being offered jobs in Newcastle, which involves a three-hour minimum round trip that people say they cannot make, because their family lives are built around a job that they are proud of. Will the Minister please meet me given what we now know about the impact that the closure will have on Teesside and its people?

[Mel Stride]

The hon. Gentleman will know that all staff who may be affected will have face-to-face consultations with HMRC staff a year before any changes occur. Some 90% on average of those across the programme will be in a position of having left employment or retired, or finding it perfectly acceptable to move, in this case to Newcastle. I would be delighted to meet the hon. Gentleman to discuss the issue.

[John Howell (Henley) (Con)]

12. What discussions he has had with Cabinet colleagues on ensuring that people have high-tech skills to increase productivity.

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[Nigel Huddleston (Mid Worcestershire) (Con)]

T2. Does the Chancellor agree that consideration should be given to making expenditure such as gym membership tax deductible in recognition of its health benefits and, ultimately, cost-saving benefits for the NHS?

[The Financial Secretary to the Treasury (Mel Stride)]

Perhaps I am in need of the gym, Mr Speaker.

I shall take that as an early Budget representation, and my hon. Friend should be aware that we already have various tax-free reliefs in respect of health in the workplace—check-ups, eye tests, the cycle to work scheme, on-site workplace gym membership and welfare counselling. Of course, our soft drinks industry levy has led a number of companies to improve the quality of their products healthwise.

[John McDonnell (Hayes and Harlington) (Lab)]

In advance of today’s debate on Syria, I welcome financial measures to sanction the Syrian regime. According to past Government figures, £151 million of assets belonging to leading figures in the Assad regime in Syria have been frozen by authorities here. Since then, 261 Syrian individuals have been listed as financial sanctions targets in the UK. Can the Chancellor tell the House what the Treasury’s best and latest estimate is of the total value of assets held in the UK by individuals connected with the Syrian regime?

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[Alex Chalk (Cheltenham) (Con)]

T5. What assessment have the Government made of the prospects for real wages in our country?

[Mel Stride]

As my hon. Friend will know, this morning we were given the good news that we are now back in positive real-wage territory. He will also know from the projections of the Office for Budget Responsibility at the time of the last Budget that we anticipate an increase in real wages throughout the projection period.

[Paul Blomfield (Sheffield Central) (Lab)]

T6. The number of people with unmanageable payday loan debt has more than halved since the Financial Conduct Authority introduced a total cost cap more than three years ago following pressure from Members on both sides of the House. New analysis by Citizens Advice suggests that extending the cap to doorstep-loan and rent-to-own markets would have the same impact on problem debt in those sectors, and could save consumers up to £154 million a year. Will the Chancellor consider taking such action?

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[Liz Twist (Blaydon) (Lab)]

T9. Many NHS trusts have set up subsidiary companies to take advantage of a VAT loophole to save money, often at the cost of the lowest-paid staff. Does the Chancellor have any plans to close this tax loophole and place the NHS on the same VAT footing as local government?

[Mel Stride]

I thank the hon. Lady for her question. Perhaps this is something that I could take up with her offline so that I fully comprehend the exact point she is raising.

[Alex Burghart (Brentwood and Ongar) (Con)]

Last year, more businesses were created in the UK than in any other developed economy. Does that not show that the Government’s policy towards businesses is working, and what will the Treasury do to build on that success?

Social Mobility and the Economy

Mel Stride Excerpts

Wednesday 28th March 2018 Westminster Hall

[The Financial Secretary to the Treasury (Mel Stride)]

It is a pleasure to serve under your chairmanship again, Mr Davies.

May I say how grateful we all are that my right hon. Friend the Member for Putney (Justine Greening) secured this debate? She has done so on the back of an outstanding record in government, including at the highest level. She brings to our debates a burning strength within her as to the importance of social mobility.

During this debate a number of Members have referred to their backgrounds, which have informed in many ways the views they have reached on social mobility and their desire to do something about it. My parents left school at the ages of 15 and 14 because of economic hardship, and the thought of them ever having become a doctor or a scientist, or even having gone to university, is about as fanciful as any one of us stepping on the surface of the moon. It would have been entirely and utterly impossible. My great break in life was when I got a free place at the grammar school, and I took that opportunity and never looked back. I therefore share with many of those present the burning drive to do something about the issues that we have discussed.

We can all agree that far. The question is, how do we approach these issues? As has been evident in the debate, many different strands are involved. The hon. Member for West Ham (Lyn Brown) mentioned housing, for example, which is one component. There are of course many other components, but I will focus on a couple of key areas, if I may, because they relate to the worthy and outstanding initiative launched today by my right hon. Friend the Member for Putney: educational skills, and the economy and business.

We should not overlook the progress we have made, in particular on education and skills, some of it on my right hon. Friend’s watch. We now have 1.9 million more children in good and outstanding schools than we had in 2010, and a record number of young people in education and training. We have more disabled and disadvantaged young people going to university than at any time in our history. We have driven up standards right across the piece. There is no point in getting people into education and training unless we give them good education and training that will be useful to get them work in future. We are achieving that: the EBacc is driving up standards and we have opened up access, particularly in the case of our great universities.

We recognise that we need to do more, so we recently invested £72 million in the 12 opportunity areas across the country, with £50 million allocated to early language and literature skills and £250 million to technical education. We have delivered £406 million for education and skills within the industrial strategy, particularly focusing on maths, digital skills and technology. My right hon. Friend mentioned apprenticeships and T-levels; there have been 3 million new apprenticeship starts since 2010 and 1.2 million since 2005.

My hon. Friend the Member for Ochil and South Perthshire (Luke Graham) mentioned the importance of not writing people off early in their career and the idea of lifelong learning. We are launching our national retraining scheme to ensure that we have upskilling at the centre of our offer. He mentioned the economy, and there is no doubt that providing a strong economy and employment is the best way to get people moving up in society and, in particular, avoiding poverty.

[Peter Kyle]

There are a lot of things I would like to comment on, but the Minister mentions the economy; is it not true that we live in a world where if someone is born into a family that has assets, they are almost certain to succeed in life, but if they are talent-rich but asset-poor they are not? What will the Minister do to restructure the economy so that those born into families who do not own property and do not have savings have a much better chance of success?

--- Later in debate ---

[Mel Stride]

On the specific issue of wealth, the hon. Gentleman will find that income inequality is at its lowest level for about 30 years. If he looks at the tax system, which includes property and assets, as he will know, the top 1% of earners in this country pay 28% of income tax. He will know that the national living wage is being increased by 4.4% as of this month with the start of a new tax year, and he will know that the very lowest-paid in our country have had a real-terms pay increase of 7% since 2015. I hope Members will recognise that the Government are on the side of the poorest in our society and are actively engaged in dealing with those issues.

[David Linden]

Will the Minister put on the record once again that the national living wage does not extend to under-25s?

[Mel Stride]

The hon. Gentleman and I have been in several debates where he has raised exactly that point time after time, and I am grateful to him for raising it again. There is an element of affordability to that; there is also the fact that there is a minimum wage, which we are increasing through time, for those who are under 25. We have been able to provide the above-inflation increase to the national living wage because our stewardship of the economy has allowed us to. The problem with some of the prescriptions that we hear is that they are big on spending and borrowing money and increasing taxation, and I am afraid that is just not a recipe for being able to make the kind of progress on the national living wage that this Government have been making.

I will move on to the overall economic progress that we have made as a Government. We have a near record level of employment in our country; we have more women in work than at any time in our history; and we have virtually the lowest level of unemployment for 45 years—youth unemployment is down by 40% since 2010. We have had five years of continuous growth, and the deficit and the debt are both falling.

[Sarah Champion]

I recognise the things that the Minister mentions, and of course they are to be welcomed, but we are talking about young people’s aspiration not just to get a part-time job in the corner shop but to become an MP, a judge or a surgeon. Surely that is what we are lacking, and that is why I hope he supports the pledge of the right hon. Member for Putney.

[Mel Stride]

I do not disagree with the hon. Lady, but my point is that unless there is a successful economy, with jobs, growth and all the things that this Government are delivering, it becomes more and more difficult to provide social mobility. This Government are providing all the things that I have outlined, and that is driving social mobility.

The way that the economy is managed has an important impact on poverty, which, as we know, is one of the greatest evils that hold people back. Since 2010 we have a million fewer people in absolute low income—a record low. The hon. Member for Mitcham and Morden (Siobhain McDonagh) raised the issue of child poverty; we have 300,000 fewer children in absolute low income. There are 200,000 fewer pensioners in absolute income poverty and 500,000 fewer adults of working age in absolute low income since 2010. In fact, of the 28 EU member states, our country has the fifth lowest level of persistent poverty. That is not the same as saying that where we are is acceptable or that we do not have to do more, but we should recognise that progress is being made.

Doing more is right at the heart of what my right hon. Friend the Member for Putney suggests. The Government warmly welcome her initiative; she rightly said that a lack of social mobility leads to talent going to waste. I totally endorse that. She referred to the important link between productivity and social mobility, a point that my hon. Friend the Member for Chichester (Gillian Keegan) also raised. It is a simple fact that living standards can increase dramatically if we get productivity right. In fact, if we had the same level of productivity in our country as there is in Germany, our economy would be 30% larger than it is. I am wholeheartedly with her on that.

My right hon. Friend the Member for Putney also raised the issue of Brexit and talked about the freedoms that will come with it as a moment for change. That was an apposite and far-sighted point to make. She urged companies to engage in her social mobility pledge, focusing on partnerships with schools and work experience. My right hon. Friend the Member for Bexleyheath and Crayford (David Evennett) spoke passionately about his work experience when he was a younger man—or should I say an even younger man—than he is today.

On companies’ recruitment practices, my right hon. Friend the Member for Putney raised the issue of name-blind applications and the work that Clifford Chance has done, as well as the contextual recruitment carried out by Deloitte, Linklaters and others, which takes into account applicants’ backgrounds as well as the contents of their curriculum vitae. If I may paraphrase her, it is a case of employers being blind to everything but someone’s suitability to do the job. We can all unite around that. She also raised the important matter of degree apprenticeships and made an interesting point about how the apprenticeship levy is used and whether it could be directed in ways that may be more helpful to the issues that we are debating.

My right hon. Friend raised the important point of how we measure social mobility and human capital. Personally, I think that is an area that would be worthy of greater attention. I do not believe that the Office for National Statistics or any other such bodies produce such statistics, and it may well be worth us looking at that more closely. She raised the importance of working with others, such as companies in our constituencies and organisations such as the CBI, the FSB and the others that she has already brought on board, for which I give her huge credit.

It may be impossible to discuss such a deep and important issue as social mobility without being partisan, and almost inevitably there have been elements of partisanship in the debate. But my right hon. Friend should be congratulated on at least uniting us in spirit on an issue that we are all determined to confront. She left us with a powerful legacy from her time as Secretary of State for Education. I have a feeling that there is far more to come from her; that she is far from finished in her drive for a fairer and better world, with social mobility beating alive, loud and whole at its heart, and I thank her for bringing forward this debate.

Double Taxation Convention: UK and Cyprus

Mel Stride Excerpts

Wednesday 28th March 2018 Written Statements

[The Financial Secretary to the Treasury (Mel Stride)]

A Double Taxation Convention with Cyprus was signed on 22 March 2018. The text of the Convention is available on HM Revenue and Customs’ pages of the gov.uk website and will be deposited in the Libraries of both Houses. The text will be scheduled to a draft Order in Council and laid before the House of Commons in due course.

[HCWS605]