Retained EU Law (Revocation and Reform) Bill

Debate between Michael Tomlinson and Jonathan Reynolds

Consideration of Lords amendments
Wednesday 24th May 2023 Commons Chamber

[The Solicitor General]

Thank you, Madam Deputy Speaker. I fear I have tried your patience for too long, so I will seek to conclude. I know a number of other right hon. and hon. Members want to catch your eye and I will allow them to do so.

I have set out the Government’s position. It is one that prioritises a clear statute book, that ensures that we have regulation that is fit for purpose and that works for the United Kingdom. I invite all hon. Members to support the Government’s motions today.

[Jonathan Reynolds (Stalybridge and Hyde) (Lab/Co-op)]

Well, now. From the outset the Opposition have made it clear that we believe this Bill to be unnecessary, unrealistic and undesirable, and everything that has happened in the other place since we last saw it here has only reaffirmed what was painfully obvious. This is an inherently flawed piece of legislation, from a fatally wounded Government unable to deal in reality.

I reiterate what I said on Second Reading: this Bill has nothing whatsoever to do with Brexit. We have left the European Union. That is a fact. This is about the good governance of the UK, and whether it is Parliament or Government that should have the power to control significant changes to the law. On the Opposition Benches, we recognise that there are undoubtedly areas where we as a country will choose to take a different regulatory approach now that we are no longer pooling some of those decisions across the other member states of the European Union. However, where we choose to do that, the correct approach is to bring to this place a set of positive proposals and have them accepted or rejected in the usual fashion. Not only is that the better approach, but it is the Government’s approach to, for instance, financial regulation in the form of the Financial Services and Markets Bill, which the Labour party broadly supported. The Solicitor General gave additional examples of that approach in his opening remarks. Indeed, if any Member has a positive agenda to promote, let them bring that positive set of proposals to this place.

What the Government suggested initially was nothing short of legislative vandalism, taking a machete to the law in a way that risked our hard-won rights, when what was needed was a scalpel. For the Government to try to remove via a sunset clause vast swathes of law, which they themselves could not even adequately list or quantify, was always ridiculous. To create so much uncertainty—especially after the fiasco of the mini-Budget, when the Conservatives crashed the British economy—was bad enough, but also risking so many core rights and protections, in the form of employment law, the environment and consumer rights, was fundamentally unworkable. Britain’s businesses, trade unions, civic society and campaigners united to oppose such a reckless and unnecessary approach, and I, for one, commend them for their work.

As all colleagues are now aware, the Government have finally reckoned with reality. Today, we are presented with the inevitable decision by the Secretary of State to completely abandon the Government’s initial approach and accept how wrong they were. It appears to be a decision so humiliating that the Secretary of State is not prepared to face the Chamber. The Government’s amendment, through which they seek to perform a U-turn so swift that it is more of more of a handbrake turn, will change the Bill fundamentally. I thought that the Solicitor General put a very brave face on it, but people will rightly ask why, if his statements are correct, this was not the Government’s approach to begin with.

The change to the sunset clause is not the limit of the good work done in the House of Lords. In the other place, they have sought to protect the role of Parliament and of our constituents in deciding our future trajectory. They have correctly made it clear that no one voted to take back control only for decisions to be made in the back rooms of Whitehall. Lords amendment 1, which was tabled by Lord Hope of Craighead and the Conservative peers Lord Hamilton and Lord Hodgson, would ensure that a joint committee goes through the laws that the Government are proposing to drop, with any objections triggering a vote in Parliament. I urge all colleagues who wish for their constituents’ voice to be strengthened in this process to support the amendment.

Lords amendment 6 would ensure that many of the rights secured by EU case law

decisions cannot be reversed without Parliament’s say so. Crucially, the amendment also respects the role that the devolved Administrations should be playing in that process, allowing them to have the final decision on revoking any rights, powers or liabilities, where relevant.

British consumers and farmers rightly want our world-class standards to be strengthened, not weakened, as a result of leaving the EU. We will therefore support Lords amendment 15 to stop a regression on food and environmental regulations. I heard the Minister’s defence of the Government’s position in pushing back on the amendment, but, in light of the widespread concern of many constituents about, for instance, the huge increase in sewage in UK waterways under the Conservative Government, it is particularly important to support it.

Finance Bill

Debate between Michael Tomlinson and Jonathan Reynolds

2nd reading: House of Commons
Tuesday 12th September 2017 Commons Chamber

[Michael Tomlinson]

Will the hon. Gentleman give way?

[Jonathan Reynolds]

I feel I have heard quite a lot from the Conservative party, so if the hon. Gentleman will forgive me, I shall proceed.

Today’s proceedings, along with the ways and means discussion last week, have been characterised by deeply held concerns about the state of our economy. There have been many fine and noteworthy contributions in what has been a wide-ranging debate, taking us from Venezuela to the application of the Laffer curve to corporation tax. I feel that Conservative Members will find it quite difficult to cope when I point out that the average rate of corporation tax in OECD countries is 25%, or that in Germany, the strongest economy in Europe, it is between 30% and 33%—and it is even higher in America. The hon. Member for South Thanet (Craig Mackinlay), who is no longer present, even questioned the very basis of taxing companies at all, but it is a reasonably held position that companies benefit from good infrastructure, a skilled workforce and a proven legal system, and it is reasonable to balance the impact of taxation between individuals and corporate entities. I feel duty-bound to point out that the tax gap fell every year between 2005 and 2010—from 8.5% to 7%.

I wish to pay tribute to two particular contributions—

Finance Bill

Debate between Michael Tomlinson and Jonathan Reynolds

Tuesday 6th September 2016 Commons Chamber

[Jonathan Reynolds (Stalybridge and Hyde) (Lab/Co-op)]

I rise to support amendment 141, which is in my name and those of my hon. and right hon. Friends. I am extremely grateful to Mr Speaker for selecting my amendment, and I would also like to place on the record my thanks to the Public Bill Office, whose advice and help on the matter have been greatly appreciated by me and my office.

I hope that the amendment will find agreement on both sides of the House, and I hope that the Government will not oppose it. The amendment would establish a very small tax exemption for residual cash balances that remain in an employee share incentive plan when an employee leaves such a plan. A residual cash balance is a sum of money, insufficient on its own to buy a single share that month, which would usually be carried over to the next month but which has to be refunded if an employee leaves the scheme. I propose that that balance, capped at a maximum of £10, would instead be donated to charity. That would have the added advantage of reducing costly and burdensome processing by company payroll departments.

Share incentive plans are a good and tax-efficient way to save for the future, and many employees take them up. I believe we should encourage employee share ownership. When an employee leaves a share investment plan, there is commonly a cash residual amount remaining in the account; often, it is just a few pence or a few pounds. When the employee chooses to leave the plan—that is mandatory if the participant leaves the company’s employment—the cash residual can no longer be carried forward. Under the current system, any remaining cash held in the plan when the employee leaves the plan is required to be processed, via the employer’s payroll, to apply national insurance contributions and income tax via PAYE and to pay the net balance to the employee. This process typically costs between £2 and £9, but provides little benefit to the individual receiving such a small amount.

Furthermore, the benefit to the Exchequer is far less than the total cost to companies of administering these payments, with companies paying almost twice as much to process the payments as the Treasury actually receives. To put that into numbers for the ease of Members in the Chamber, it is estimated that the administration costs for companies are between £400,000 and £500,000, while the benefit to the Treasury is just £200,000. If amendment 141 was accepted, charities and good causes would benefit by about £360,000, on top of the savings that companies would make.

There is a precedent for such a change. There are already examples of situations in which HMRC has agreed to individual exemptions to share incentive plan providers, which are currently based on specific requests assessed case by case. There is an appetite for this change among share investment plan providers and HMRC. Amendment 141 would be only a very small change to this Bill compared with what it covers, but it is one that could bring benefits both to companies and to charities and good causes, while at the same time supporting share investment plans by removing a costly and bureaucratic part of the system. The amendment would also help to simplify the tax system and encourage more charitable giving, both of which are stated priorities for this Government and would be priorities for any Government.

I was very pleased and heartened yesterday when the Government accepted amendment 145 in the name of my right hon. Friend the Member for Don Valley (Caroline Flint). I sincerely hope that the Minister will accept this amendment and that we can achieve the same result today. If she does not say she will accept it, I will seek to divide the House, but I can genuinely see no reason why the Government would not want the amendment to be agreed to.

[Michael Tomlinson (Mid Dorset and North Poole) (Con)]

It is a great pleasure to follow the hon. Member for Stalybridge and Hyde (Jonathan Reynolds). I rise to support new clause 3, to which I have added my name. I, too, agree with everything said by my hon. Friend the Member for Enfield, Southgate (Mr Burrowes). I cannot promise to be quite as brief as my hon. Friend the Member for Congleton (Fiona Bruce), because I wish to add one or two remarks of my own.

The fundamental problem is that family breakdown costs a staggering £47 billion per annum, according to the latest figures. Quite apart from the consequential social dislocation and pain that it causes, it is also undermining the British economy. Of huge importance is the fact that most breakdowns do not arise from divorce, but from the ending of relationships in which the couples concerned have not made to each other the public, exclusive and legal commitment that is marriage. Where they do make such a commitment, their relationships —not surprisingly—are far more likely to be stable.

In this context, there remains a massive public policy imperative to ask whether we are doing anything to make marriage less accessible than in other similarly developed countries. We are unusual in this country in having failed until recently to recognise marriage in our income tax system. The solution initially proposed was for a full transferable allowance, but in the event a transferable allowance of only 10% was enacted. A statistic that has already been mentioned but bears repeating is that the tax burden on one-earner married couples with two children on the average wage is 25% greater than the OECD average. The allowance is not making marriage more accessible in a meaningful way. In this context, it is no surprise that the take-up of the allowance has been so low, although the Minister welcomed the fact that the figure is moving in the right direction.

In going forward, two things could be done. First, if it is not possible in the short term to have a full transferable allowance, we should at least ensure that some married families on the basic rate receive a meaningful transferable allowance. Given that the research is so clear that child development is greatly enhanced by the presence of both mother and father in the family home and given the fact that the public policy benefits of marriage are so well developed, a full transferable allowance for married couples with children under five might be a good place to start.

Secondly, perhaps in the slightly longer term we could work towards the full transferable allowance for married couples generally. Of course that would not be cheap, but it would be considerably cheaper than the current cost of £47 billion. It would promote choice by removing obstacles to marriage. As has been pointed out, it is very much about promoting the life chances agenda. I look forward to the Minister saying one or two more words about this matter in her closing remarks.