Business of the House

Debate between Mel Stride and Grahame Morris

Thursday 13th June 2019 Commons Chamber

[Mel Stride]

Clearly, I do not know all the specifics of the matter the hon. Lady brings before the House. However, we do have Scotland questions on Wednesday 19 June, and that might be a good opportunity to ventilate the issue.

[Grahame Morris (Easington) (Lab)]

I know we are all concerned about ending poverty pay. Yesterday, I was among a group of MPs who met care workers from AFG—the Alternative Futures Group—who are being paid below the minimum wage because of cuts to sleepover rates.

Closer to home, staff employed by Interserve at the Foreign and Commonwealth Office are on strike in a dispute over pay and terms and conditions. The Government really should be concerned to learn that these hard-working staff, one of whom was awarded an MBE in the recent honours list for his years of work in the Department, are being paid less than they should be. Food banks have had to be set up to support these workers, who are currently in dispute. May I urge the Leader of the House to ask the Foreign Secretary to make a statement as a matter of some urgency, agree to bring this contract back in-house, treat these workers with the dignity they deserve, and ensure poverty pay is well and truly ended?

[Mel Stride]

I thank the hon. Gentleman for his point. More generally, there has been growth in real pay for over a year, thanks to our economic policies. Of course, it was this party and this Government who brought in the national living wage, which was increased well above the rate of inflation at the beginning of this financial year.

With regard to the specific issue and the strike that he raises, I would be very happy, if he wants to write to me, to facilitate a meeting with the relevant Minister. I also point him to Foreign and Commonwealth Office questions on Tuesday 25 June.

Finance (No. 2) Bill

Debate between Mel Stride and Grahame Morris

2nd reading: House of Commons
Monday 11th December 2017 Commons Chamber

[Mel Stride]

At the heart of the hon. Gentleman’s point rests the notion, which I agree with, that we expect the banks to pay their fair share and recognise that they received bail-outs some years ago, and tax policy towards the banks has been geared towards making sure that they make a fair and proportionate contribution to our tax take.

The hon. Gentleman mentioned the importance of competition in the banking sector, and I wholeheartedly agree with him on that, which is one reason why we are keen to ensure that as many banks as possible are headquartered in our jurisdiction rather than in others. That goes to the heart of the changes in the Bill to ensure that banks domiciled here are not penalised by being charged on capital assets held overseas—a situation that does not pertain to overseas banks that operate in our jurisdiction.

We have included an 8% surcharge on banks’ profits over £25 million. The package will help to sustain tax revenues from the banking sector in the long term, and it is forecast to raise an additional £4.6 billion over the current scorecard period.

The Bill continues the Government’s already vigorous efforts to crack down on tax avoidance, tax evasion and non-compliance. Since 2010, the Government have introduced over 100 avoidance and evasion measures, securing and protecting over £160 billion of additional tax revenue. This has helped reduce the UK’s tax gap to a record low of 6%, which is one of the lowest in the world.

[Grahame Morris (Easington) (Lab)]

The Financial Secretary says that it is a record low tax gap, but it does not take account of the vast treasure trove unearthed by the Bureau of Investigative Journalism in the Paradise papers or of other vast sums of wealth, on which we have no idea how much tax is actually due. So the figure he gave is not really correct, is it?

[Mel Stride]

I am afraid I have to dissent from that view. The simple fact is that the International Monetary Fund has identified the tax gap measure as one of the most robust measures of its kind in the world. At 6%, our gap is among the lowest in the world, and it is the lowest we have had in our history since we have been measuring the tax gap. If we had the same tax gap today as we had under the previous Labour Government, we would be out of pocket to the tune of £12.5 billion a year—enough to fund every policeman and policewoman in England and Wales.

Tax Avoidance and Evasion

Debate between Mel Stride and Grahame Morris

Tuesday 14th November 2017 Commons Chamber

[Mel Stride]

I am pleased that the hon. Gentleman has raised the issue of investment in HMRC, because we have a very good record in that respect. Some £1.8 billion of additional money has been invested in HMRC since 2010, of which £800 million will relate to the period after 2015, bringing in £7.2 billion by 2020-21. We will also be trebling the number of investigations of the wealthy to ensure they are paying their appropriate level of tax, as a direct consequence of all that additional investment.

[Grahame Morris (Easington) (Lab)]

Will the Minister please explain to the House why only 420 HMRC staff are engaged in chasing tax avoiders and evaders, yet 10 times that number of civil servants are engaged in addressing benefit fraud in the Department for Work and Pensions?

[Mel Stride]

I challenge those figures: a far larger number than the hon. Gentleman suggests are engaged in clamping down on tax evasion and avoidance. About 50% of the 2,100 largest corporations in this country are under investigation at any one time—not necessarily because they have done anything wrong, but because they have complex tax affairs. So we are investing in that.

Paradise Papers

Debate between Mel Stride and Grahame Morris

Monday 6th November 2017 Commons Chamber

[Mel Stride]

The most important message for the hon. Lady’s constituents is the merits of getting on top of tax avoidance, evasion and non-compliance, which is exactly what this Government have done, and which is in turn raising the vital taxes for our public services so we can have the kind of public services that are a hallmark of a civilised society.

[Grahame Morris (Easington) (Lab)]

We probably need a time-out for a fact check on the £6 billion tax gap figure that the Minister is consistently quoting. May I refer him to the private Member’s Bill promoted by the former right hon. Member Michael Meacher, which set out detailed plans for a general principle on tax avoidance? We can get around a rule, but we cannot get around a principle; that seems to me to be a solid and sensible way forward.

[Mel Stride]

The hon. Gentleman referred to a £6 billion tax gap, but the figure is not £6 billion; it is 6% of all tax that should be collected. On his suggestion that there should be a general principle or general rule, there is already a general anti-avoidance rule for exactly the purpose to which the hon. Gentleman has alluded.

HMRC Closures

Debate between Mel Stride and Grahame Morris

Thursday 2nd November 2017 Westminster Hall

[Mel Stride]

A number of Members in the debate raised the costs mentioned in the National Audit Office report, the Public Accounts Committee report and so on. Certainly, the business plan has gone through various iterations, but where we are is quite clear: the total investment over the next 10 years will be £552 million. The NAO has disputed some of our figures, and the Government’s view is that the NAO has looked at those figures on a different basis—for example, over a 10-year period, whereas we were initially looking at figures over five years.

We have some cost avoidance of £75 million per annum from 2021 through getting out of the private finance initiative arrangement—which, incidentally, we entered into in 2001, which was of course under a Labour Government. On top of that, we will have £300 million-worth of savings over the next 10 years, and we will have annual cost savings of £74 million in 2025-26 compared with 2015-16, rising to around £90 million from 2026-27. The savings are ongoing and will be long standing.[Official Report, 27 November 2017, Vol. 632, c. 2MC.]

[Grahame Morris (Easington) (Lab)]

On value for money, I happen to agree with a number of points made about the opportunity here to rebalance the economy, but I do not understand how it can be any more cost-effective to relocate these major tax offices to very expensive city centre locations. The issue of future-proofing was raised by the hon. Member for Glasgow South West (Chris Stephens). The Government have signed, through HMRC, a number of long-term leases on large offices in Croydon and Bristol without break clauses. Clearly it is essential that the capacity of HMRC to collect taxes is not impeded, but is it in our long-term interest to sign such long contracts for very expensive city offices?

[Mel Stride]

The hon. Gentleman makes two points. One is a general point about the economic sense, or otherwise, of locating the services in larger hubs. The arguments on that are, broadly, extremely strong. They are that we can have larger groups of people and more collaborative working and can ensure that the infrastructure and technology are there. HRMC operates very differently today from how it operated some decades ago. We take a risk-based approach to chasing down tax that should be paid and is not being paid. That involves a lot of data and analysis. Frankly, the idea—if anyone here is entertaining it—that for the last few years people have been able to walk into their local tax office or have appointments there is just not correct. We need centres of excellence that can work in the manner that I have described.

The hon. Member for Easington (Grahame Morris) raises the issue of long-term leases, and he is right to say that in some cases there are no break clauses. I make three points on that. First, we get a much more competitive rate if that is the basis on which we enter into a lease. Secondly, that of course does not mean that leases cannot be broken at some future point by way of negotiation. That is quite typical in the commercial property market. Thirdly, we have flexibility within those leases, such that other Government Departments and employees would be able to use the buildings as well. There are therefore at least three very good reasons why that approach has been taken.

Let me now make some progress. We need a tax system that offers digital services in an age in which people increasingly expect and rely on them, that makes use of technological developments to deliver as efficient a service as possible, and that is suited to the dynamic and fast economy of today.

[Graham Stringer in the Chair]

I hope that the hon. Member for Cumbernauld, Kilsyth and Kirkintilloch East would agree that just dispersing employees across a wide area is not an efficient way to run any organisation, let alone one with responsibility to the taxpayer.