Business of the House
Debate between Mel Stride and Barry Sheerman(5 years, 4 months ago)
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Mel Stride
I am happy for the hon. Lady to write to me on the specific point about her constituent so that I can take it up with the DWP, to make sure that we get a full and detailed response to the various issues. However, as I said earlier, the general principle of universal credit and how it works has been a major driver of employment in this country: we have the highest level of employment in our history and the lowest level of unemployment since 1974. We have halved youth unemployment since 2010.
Business of the House
Debate between Mel Stride and Barry Sheerman(5 years, 4 months ago)
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Mel Stride
My hon. Friend raises the important matter of private Members’ Bills. I should point out that in this Session—albeit it is a very long one—we have had the highest total of private Members’ Bills receiving Royal Assent since 2003. He asked me when the Session will end. I think the answer to that will become clearer when we have a new Prime Minister in place.
Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
I know that the Leader of the House is a man who believes in innovation. It worries me that we are coming to a long recess, and over that time really important issues are not going to go away. Nazanin Zaghari-Ratcliffe is still in prison, and we will not have the ability to debate that over the summer. The other Sunday morning, I stood outside the Iranian embassy to protest about that, and shortly I will be standing outside the Japanese embassy to protest about the disgraceful decision to kill hundreds of whales, many of which are endangered species.
I have an idea: we could run Westminster Hall as a place for debate on special issues in recess. We already have the petitions system. If we kept that little part of Parliament running through the recess, we could keep the campaign going on issues like Nazanin Zaghari-Ratcliffe’s imprisonment and the poor whales being exterminated.
Mel Stride
The first point I would make to the hon. Gentleman is that when the recess actually occurs is of course a matter for the House, and it was subject to a motion that the House has agreed to. He makes a specific point about Westminster Hall and the use of Westminster Hall facilities for the purposes of debate during the recess. I think it is fair to say that it is a fairly radical idea, but that does not necessarily mean that it should not be fully and carefully considered. If he would like to write to me, or indeed come to see me for a cup of tea, we can talk about it. The final point I would make is that of course the work of government never stops, whether there is a recess or otherwise.
Business of the House
Debate between Mel Stride and Barry Sheerman(5 years, 5 months ago)
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Mel Stride
My hon. Friend raises an important point. I know that she is, rightly, deeply passionate about that matter, and we have discussed it personally on a number of occasions. The Government are entirely committed, and rightly so, to freedom of religion and belief and to promoting respect between people of different religions and beliefs. I wonder whether this would be a good subject for an Adjournment debate. However, as she pointed out, the event to which she refers falls within the recess. I do not have a ready answer to that conundrum, but I would be happy to discuss with her later what options there might be, if that is of use.
Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
The Leader of the House is getting on my right side this morning. As chairman of the John Clare Trust, I was delighted to hear him quoting John Clare’s poetry. My favourite poem, and probably his best love poem, is entitled “I do not love thee”; I recommend that the Leader of the House reads it.
The Leader of the House also mentioned Norman St John-Stevas. I knew Norman St John-Stevas in the early part of my career here. I add my thanks to him for setting up the Select Committee system. He was also a great social campaigner. To read his speeches against capital punishment, social injustice and women in prison is a wonderful treat. He had a sense of humour and dagger- like incisiveness when it was necessary.
There have been many big demonstrations this week, but there was a smaller one by women in prison. On the whole, I do not believe that women should go to prison unless they are very violent. We should not be sending women to prison for not paying television licences or for minor crimes. Can we have a debate on women in prisons? Why can we not have women’s centres up and down our country that support women who get into trouble with the law? At the moment, they come out of prison with no housing, no support, no counselling and no work.
Mel Stride
I thank the hon. Gentleman for his reference to John Clare and Norman St John-Stevas. As he may know, they have a connection, in that they both come from Northamptonshire, I believe. They are both great, late and much missed individuals.
The hon. Gentleman raised an important point about women in prison. The female prison population is a minority. None the less, there are issues as to whether incarceration in that form for women is appropriate in all instances, as he suggested. He referred to the very effective rally yesterday in the Emmanuel Centre here in Westminster, and I believe that the speech made by the Under-Secretary of State for Justice, my hon. Friend the Member for Charnwood (Edward Argar), was well received. I know that the hon. Gentleman’s remarks will be heard.
Business of the House
Debate between Mel Stride and Barry Sheerman(5 years, 5 months ago)
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Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
The right hon. Member for South Holland and The Deepings (Sir John Hayes) recently joined me as a trustee of the John Clare Trust.
I welcome the Leader of the House’s comments on Jo Cox. She was a Labour family friend, and her constituency was close to mine. I know we do not talk about these things, but I still worry about the safety and security of Members, particularly female Members, of this House, and I do not think we have yet come to terms with some of the vulnerabilities involved. That is not for major debate.
In most of our towns and cities, we are poisoning many women—pregnant women and older women—and men, too, with the dirty air they breathe every day. Can we have an urgent debate on a fast programme of activity, not the Government’s 2040 deadline, to cut down the poisonous air our people are breathing in every day?
Mel Stride
I echo the hon. Gentleman’s comments about Jo Cox and, more generally, about security. It would not be appropriate for me to discuss it on the Floor of the House, but I assure him that I have already met the Chairman of Ways and Means and others to discuss matters of security across the parliamentary estate, which I take extremely seriously.
We have a clean air strategy, of course, and the Government have done a great deal to cut many emissions substantially over the past several years. Given that the Chair of the Backbench Business Committee, the hon. Member for Gateshead (Ian Mearns), is still looking for opportunities for yet further debates, clean air might be a good subject. The hon. Member for Huddersfield (Mr Sheerman) might like to approach him on that basis.
Business of the House
Debate between Mel Stride and Barry Sheerman(5 years, 5 months ago)
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Mel Stride
I believe I am right in saying that the Foreign and Commonwealth Office provides travel advice online, so that those who are considering travelling to certain parts of the world can be properly informed. This might well be an appropriate subject for an Adjournment debate, and my hon. Friend may wish to consider that.
Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
As I told the House earlier today, my thoughts are with those commemorating the 75th anniversary of the D-day landings. As a small child I saw very little of my father in the first five years of my life, because he was overseas serving in the Royal Engineers. I think that the House should think very profoundly about those young men and women who fought and lost their lives.
As a fitting tribute, could we seriously consider something that I am passionate about—the planting of trees to remember people and their contribution? Is the new Leader of the House aware that there is to be a new northern forest stretching all the way from Hull to Liverpool, containing 50 million trees? Could we expand that across the United Kingdom, as a real tribute to the people who fought for us in the war and many of whom died fighting for the freedom of this country?
Mel Stride
The hon. Gentleman is absolutely right: we should seek whatever means we can to pay tribute to those who fought on our behalf in the second world war. He mentioned the planting of trees. I remember that when I was a young boy, we were urged to “Plant a tree in ’73”, and I assume that there are forests of giant trees today as a consequence of that initiative. The planting of the great northern forest is an excellent and imaginative approach; I think that the Government intend to plant about 15 million trees. As for the hon. Gentleman’s specific point, Environment questions, on Thursday week, will provide an excellent opportunity him to raise it with Ministers.
Value Added Tax (Tour Operators) (amendment) (EU exit) Regulations 2019
Debate between Mel Stride and Barry Sheerman(5 years, 6 months ago)
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Mel Stride
I am grateful to the hon. Member for Oxford East for her usual thorough interrogation of the issues at hand.
Mel Stride
The hon. Lady’s colleague says she is very good, and I concur entirely with that sentiment.
I am pleased that the hon. Lady agrees with the premise of what we are attempting to achieve here. She recognised the importance of avoiding potential changes in the unlikely event of a no-deal Brexit, in terms of double taxation. She specifically raised the issue of what would happen, and she set out in great detail what might happen, in the event that we were to leave the European Union and the EU were to then change its relationship in respect of this particular element of the VAT regime and what the impact of that might be on the UK business sector. I would like to make a few brief points on that.
The first point to make is that there is no suggestion at this stage from HMRC or ourselves that that is a likely outcome, in terms of the discussions that we have had with the European Union on our exit. It would introduce a great additional complication on both sides were the EU27 to decide to move in that direction.
The second point I would raise is one that the hon. Lady raised. Under the EU’s current regime, no third countries are treated as having to register for VAT within any of the EU28 member states with which they may be conducting business.
Thirdly, when we look at VAT, where holidays or trips are sold from the UK into the EU27, VAT is generated as a consequence of those trips and the hotel bookings and so on, so the EU and member states are collecting VAT in that way. As the hon. Lady will recognise, the context of this debate is the margin on which the VAT is being accrued.
Finally, if we were to end up in a no-deal situation, which I think unlikely, and the EU were to decide that our businesses had to register separately within the EU27, it would have to think long and hard about the consequences and what we might do in response to that. I do not think it would be in either party’s interest to change from the current status quo.
The hon. Lady also pointed out that the impact assessment foresees limited or effectively no impact on businesses. Of course, that excludes the scenario on which she dwelt at great length in her speech, and rightly so, as I have set out why we think that is highly unlikely. She asked what support we would provide to business in the event that there was a changed response from the EU27. Were we to get into that kind of territory, we would know some time in advance, and would take decisions at that moment in time.
She also asked whether we had encouraged the EU to look at alternative arrangements. I am fairly confident in saying that we have not engaged in those specific discussions with the EU on the basis that we think that it is extremely unlikely, but were it to appear to become more likely, then of course we would look at all those particular avenues. She asked a specific question about what the loss of VAT revenue might be as a consequence of complying with WTO rules and applying the zero VAT rate to those transactions between ourselves and the EU27, in the unlikely event of a no-deal Brexit. I am very happy to write to her to give as accurate an answer as I can.
I thank the hon. Member for Linlithgow and East Falkirk (Martyn Day) for his comments. I think he said it was disgraceful that we are still planning for a no-deal Brexit, but that is something that we passionately do not want, which is why we are working so hard to try to deliver a deal. However, we must recognise the fact that ultimately a no-deal might be outside of our control. It is to some degree within the gift of the European Union. As a responsible Government, we must make sure we cover that remote possibility. On that basis, I hope the Committee will support the instrument.
Question put and agreed to.
Making Tax Digital
Debate between Mel Stride and Barry Sheerman(5 years, 9 months ago)
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Mel Stride
The short answer is yes; it can be found on gov.uk. Indeed we have also produced a partnership pack for intermediaries, which sets out in very clear language exactly what is involved and what will be expected of those businesses and individuals.
Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
I do not know whether the Minister is familiar with young children’s literature, but Roger Hargreaves is a popular choice as the inventor of the Mr Men. I am not accusing the Minister of being Mr Tickle or Mr Silly, but perhaps today he is Mr Smug. The fact is that small and medium-sized enterprises in my constituency and around the country have been knocked sideways by the changes in the training levy, which relates to how they get their people skilled and trained. They have not yet digested that, but now we have another onslaught with digitisation. Is he aware that many of my constituents are going to be forced into the hands of so-called professional people—accountants—who will charge them a great deal of money to do this process for them?
Mel Stride
I am indeed familiar with the work of Roger Hargreaves. I am not sure whether there was a Mr Cautious or a Mr Sensible, but I think they would be more appropriate than Mr Tickle or Mr Silly. To answer the hon. Gentleman’s question, in terms of navigating around the various options, we are providing clear guidance that is very easy to follow, and 98% of those businesses and individuals that will be impacted are already filing their VAT returns digitally. Among the software products available, there is bridging software that allows companies to continue to make use of spreadsheets while using the software, some of which is free, to make their submission to HMRC.
Draft Double Taxation Relief and International Tax Enforcement (Austria) Order 2018
Debate between Mel Stride and Barry Sheerman(5 years, 10 months ago)
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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 (Austria) Order 2018.
May I say what a pleasure it is to serve under your chairmanship, Mrs Main? The order gives effect to a replacement double taxation agreement with Austria. DTAs remove barriers to international trade and investment, and provide a clear and fair framework for taxing businesses that trade across borders. By doing so, they benefit both businesses and the economies of the countries signed up to them.
Our current DTA with Austria dates from 1969 and is therefore in need of a comprehensive update to reflect changes to the OECD’s model tax convention and the domestic tax laws and treaty preferences of both states. The new DTA also introduces a number of improvements for businesses, individuals and Her Majesty’s Revenue and Customs. The new agreement will first create certainty for businesses, boosting vital trade between our two countries. Cross-border dividends between group companies in the European Union are currently exempted from source state taxation under the EU’s parent-subsidiary directive. The new agreement ensures that UK businesses with subsidiaries in Austria will not be affected by the UK’s exit from the European Union.
Our current DTA permits Austria to tax dividends paid to UK residents at a rate of 5% for amounts paid in respect of direct investment, and 15% on portfolio holdings. The new DTA reduces the rate on direct holdings to zero, and that on portfolio holdings to 10%. At the same time, our right to tax distributions from UK real estate investment trusts at a rate of 15% is preserved. In addition, dividends received by UK pension schemes will be exempt from taxation in Austria. These reductions will ease the flow of cross-border investment between our two countries, to the benefit of both.
The new DTA also brings the mutual agreement procedure up to the minimum standard on improving dispute resolution agreed under the OECD-G20 base erosion and profit shifting—BEPS—project. In addition, the new agreement provides for mandatory binding arbitration, which will ensure that disputes are always resolved and that double taxation is avoided. Our current DTA with Austria was not listed as one that either state wished to be covered by the BEPS multilateral instrument—MLI—because this new agreement contains all of the provisions that would have been introduced by the MLI, taking into account the respective reservations made by the UK and Austria.
These provisions include the statement in the preamble that a purpose of a DTA is not to create opportunities for tax evasion and avoidance, and a principal purpose test that denies treaty benefits in cases of abuse. Together, these provisions ensure that the agreement complies with the BEPS minimum standard on preventing treaty abuse and supports this Government’s agenda of fair and transparent international tax standards. Other anti-avoidance rules in the new treaty include a tiebreaker provision for determining corporate residence, based on competent authority agreement.
Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
The Minister is gabbling through this at a rate of knots. I have had to come here at 6 o’clock on a Monday evening, when I should be somewhere else along the corridor. The impact assessment states that there will be no significant impact on businesses, charities or voluntary bodies. What the hell is this all for if there is no impact on anyone?
Mel Stride
Well, I am not sure that I would use quite the terminology that the hon. Gentleman has just introduced to the Committee. The purpose of any DTA is clearly to ensure that those entities that are trading across international boundaries do not suffer double taxation—so they are not taxed in both jurisdictions—and to ensure that trade is facilitated.
Mr Sheerman
Can the Minister explain to me why this relates only to Austria? I know of countries around the world where there are real concerns about double taxation, about people dodging tax and all those other things, but one country that would never enter my imagination when thinking about that is Austria.
Mel Stride
The hon. Gentleman might not be aware that we have double taxation agreements with a whole variety of countries. In fact, he has missed some of the best debates ever held in the House of Commons, because in this very Committee Room we have recently discussed DTAs with countries such as Lesotho—that was a fairly feisty debate between myself and the hon. Member for Oxford East. It is not a treaty in isolation, but one of many that we have entered into with other jurisdictions.
The provision in the capital gains article preserves UK taxing rights on gains from shares that derive their value from property in the United Kingdom. Finally, the new DTA provides for mutual assistance in the collection of tax debts. Together, those features strengthen both countries’ defences against tax avoidance and evasion.
In summary, the agreement protects UK revenue and provides a stable framework in which trade and investment between the UK and Austria can continue to flourish. I therefore commend the order to the Committee.
Oral Answers to Questions
Debate between Mel Stride and Barry Sheerman(6 years, 9 months ago)
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Mel Stride
My hon. Friend raises a critical point about the importance of getting the debt down to make sure that future generations do not carry the burden of it. That is why we have reduced the deficit by three quarters and why we are going to hit our reduction in the level of debt as a percentage of GDP two years early, in 2020-21.
Mr Sheerman
Mr Speaker, you will know that I am not the most radical Member on the Labour Benches, but I want to tell the Minister that if the Government had been successfully reducing their budget, my constituents in Yorkshire could forgive her. The fact of the matter is that we have had the money for the electrification of the trans-Pennine railway stolen from us, and the Chancellor refuses to give it back. When will he make amends?
Mel Stride
As the hon. Gentleman will know, whether he is young or a puppy or whatever he may be, we are awaiting the business case for the trans-Pennine project, and when we receive it, we will look at it most closely.