Exiting the European Union (Excise)

Neale Hanvey Excerpts

Wednesday 3rd February 2021 Commons Chamber

[Neale Hanvey (Kirkcaldy and Cowdenbeath) (SNP)]

The first casualty of covid was aviation. That saw the collapse of Flybe, the UK Government’s supine response to fire and re-hire practices, and other significant job losses. Whilst Edinburgh airport sits in the constituency of the hon. Member for Edinburgh West (Christine Jardine), I have been supporting a number of my constituents in Kirkcaldy and Cowdenbeath who work at our national airport just across the Forth. They are airline pilots, cabin crew, ground staff, hospitality staff and facility staff. I have also been supporting Edinburgh airport’s chief executive, Gordon Dewar, and his team through letter writing, parliamentary questions, speaking in debates and joining the all-party parliamentary group. I have met twice with the aviation Minister, the Under-Secretary of State for Transport, the hon. Member for Witney (Robert Courts): in October and again in January this year. We have spoken about the need for a comprehensive aviation recovery strategy and why that is absolutely vital to the sector and to my constituents. Those discussions included, but were not limited to, the changes being made to airside sales. In all this time, I have not had a meaningful answer to any of my questions and concerns, or indeed those of the Edinburgh airport leadership team.

Given this sorry tale, and the absence of any strategy coming forward from the UK Government, it is hard to express the alarm, dismay, disbelief and anger when it emerged during the pandemic and just before the Brexit chaos that the UK Government planned to entirely remove VAT exemption on all airside sales, save for alcohol and tobacco. In tandem with that, the decision to abolish VAT RES for high-street sales was another significant blow.

This is at a time when we should be looking to strengthen and rebuild our economy, and plan for a recovery of tourism and related sectors. This decision will have an obvious and substantial negative impact on all the above. For example, at Edinburgh airport, the loss of VAT exemption for airside sales will result in over £7.6 million in lost revenue and place hundreds of further jobs in peril. It will place at risk a further £3 million of revenue from retail, fashion and other specialist shops. This is job-sustaining revenue and it cannot and will not be compensated by any stretch through duty-free liquor and tobacco.

This would have a considerable financial and economic impact at the best of times, but at the time of covid it threatens the very survival of the aviation industry and will cause untold damage in the wider economy, including job losses and slower economic recovery. That will be across these islands, not just in Scotland, but aviation enables much of Scotland’s economy, from tourism, business and education to culture and research. As Gordon Dewar of Edinburgh airport commented, aviation makes that possible, but we are

“not too big to fail.”

Brexit was an ill thought-out and massively damaging policy, seeing legislation such as this being implemented at the worst possible time for affected sectors. These intertwined sectors are already in survival mode. The hon. Member for South Ribble (Katherine Fletcher) may make light of the return of the booze cruise, but it is nothing to be celebrated when it is being paid for on the back of Scottish jobs and jobs across these islands, and the rather parochial view of the hon. Member for Dover (Mrs Elphicke) on this change and her appeal to such a narrow audience completely ignores that pernicious human impact beyond her back garden.

The creativity of contributions from the Government’s virtual Benches cannot camouflage the damage this will inflict. Brexit is an unmitigated disaster and the UK Government clearly care not a jot for Scotland’s wishes or our economic potential. This is but one of the compelling reasons why Scotland will very soon vote for independence and join the world.

Equitable Life

Neale Hanvey Excerpts

Thursday 21st January 2021 Commons Chamber

[Neale Hanvey (Kirkcaldy and Cowdenbeath) (SNP)]

Campaigners have now been fighting for two decades for the compensation they are owed to cover pensions lost due to the collapse of Equitable Life and the UK Government’s administration of the pensions industry. My Kirkcaldy and Cowdenbeath constituents were first let down by their own then MP, one of my constituency predecessors, Mr Gordon Brown, when he served as Labour Chancellor and then Prime Minister. In 2010, as one of their first moves in office, Conservatives and Liberal Democrats promised that money would be forthcoming, but 10 years on, my constituents and up to 1 million more people across the UK are still waiting for that fair and transparent settlement they were promised.

Donald Scott, the east of Scotland regional representative of EMAG, represents dozens of local cases where people are having to work well into what should have been their well-earned retirement. Others have had to sell their homes because of the shortfall in their pensions. He described the Chadwick report as “discredited”, the financial offers made to date as “derisory” and rightly condemned the parliamentary ombudsman offer as a “pittance”. My constituents want to know: how can the Government condemn benefit cheats or abandon 3 million self-employed for fear of cheating, when Her Majesty’s Treasury continues to cheat the victims of its own maladministration?

The victims of this scandal have been cheated. According to Westminster Governments of every hue, they did the right thing and saved diligently for their retirement. The compensation offered to them amounts to 22%—often less—of the losses that they suffered. EMAG has identified cases of serious errors in the Treasury’s sums, such as calculating the loss of one pensioner at £58 who actually lost over £7,000, and another, which has already been mentioned, at £17 when the actual loss was over £8,500.

The party of Government agreed in 2010 to pay £1.5 billion in redress for this scandal, despite accounts estimating losses to be between £4 billion and £4.8 billion and EMAG claiming that the true figure of relative losses is probably in the order of £6 billion. It is no wonder then that nearly 1 million policyholders feel short-changed of their pension and of their retirement.

In 2005, Equitable Life victim Liz Kwantes was so angry at losing tens of thousands of pounds that she had saved to provide financial security in her retirement that she stood for election against Gordon Brown in his and now my home constituency of Kirkcaldy and Cowdenbeath. She stood as an independent on that issue alone. While Mr Brown enjoys a gold-plated pension, she and so many others are still suffering because of the inaction of successive Westminster Governments. It cannot be difficult to imagine why this is causing some to question whether the delay is a cynical ploy to wait for those impacted on to die before receiving the compensation that they are due.

I can assure my constituents that they now have an MP who is firmly on their side, but, to date, that cannot be said of this Government. Last March, I was glad to be joined by 42 cross-party Members who signed my early-day motion, but that will be of little consequence until this Government honour their word and commit to increasing the available funding from £1.5 billion to the £4.1 billion required to cover the Treasury’s own calculation of the true costs of full compensation to all victims.

Covid-19: Disparate Impact

Neale Hanvey Excerpts

Thursday 22nd October 2020 Commons Chamber

[Kemi Badenoch]

I know that my hon. Friend is a real champion for communities in Ynys Môn, particularly with her hidden heroes campaign. I thank her for her hard work on that and on behalf of her constituency. The current evidence is showing that there is a range of factors, which I have mentioned already, particularly occupational exposure and co-morbidities. These factors affect the whole population, regardless of race, and we need to protect the whole population. But I am also keen that we do not stigmatise ethnic minorities or make it seem as though they are carriers of the disease. Targeting specific things and saying, “This is just for black people. This is just for Asian people” will create division and stigmatise, and it will not necessarily go to the people who need it most. That is the message I would send to her colleagues in Wales. This is what we have found. We hope that they agree with us and accept this as the way to go. It is about targeting the whole population, knowing what the vulnerabilities are, and not stigmatising groups.

[Neale Hanvey (Kirkcaldy and Cowdenbeath) (SNP) [V]]

I spent most of my professional career in London working with friends and colleagues from the BAME communities, so it was upsetting for me to find that more than 70% of all NHS and care deaths during the first wave of covid were among the black and minority ethnic communities. Although the reasons for those deaths are not fully understood, there is some anecdotal evidence that the deployment of staff from BAME communities to high-risk or low-protection areas may have played a role in that feature. Will the Minister advise me what action has been taken, in collaboration with the Department for Health and Social Care, regarding potential structural issues in the care services to prevent any repeat of this in the second wave?

[Kemi Badenoch]

The hon. Gentleman is right to raise that issue. As he will remember, I mentioned that 95% of ethnic minority workers have had risk assessments—we have spoken about that at several points during oral questions in the House. That is the issue that they have been trying to tackle. It is important that risk factors are taken into account before people are deployed in various sectors. We know that ethnic minorities are over-represented in lower-paid parts of the NHS, and we will be tackling that structural issue. But risk assessments are the key thing to ensure that people understand their risk and that is how we will deal with that.

Future Relationship with the EU

Neale Hanvey Excerpts

Tuesday 9th June 2020 Commons Chamber

[Penny Mordaunt]

My right hon. Friend makes very good points. The EU needs to recognise that we are now a sovereign equal and negotiate with us on that basis. There are massive opportunities from us coming to a deal. The EU will be aware of those opportunities, and I hope that we can get the focus that we need to resolve the remaining issues and get a move on for their Union and ours too.

[Neale Hanvey (Kirkcaldy and Cowdenbeath) (SNP) [V]]

The Minister talks about time to prepare, yet the House has no clarity on where or how we will land, and businesses the length and breadth of the UK still do not know what tariffs will apply, which regulations they should follow, what customs processes will apply, how people and data can cross borders or whether professional qualifications will be recognised. Can the Minister honestly look business owners in my constituency and across Scotland in the eye and tell them that they are meant to prepare all of this in the next six months while battling the impacts of a global pandemic?

[Penny Mordaunt]

We are very aware of the backdrop against which these negotiations are taking place. Hon. Members will not have long to wait before they learn more about border operations, but in many of the areas that the hon. Gentleman mentions, we have made progress, and that progress is in the public domain. In other areas, we are simply asking for a reciprocal relationship for things that we currently do for other nations.

Contingencies Fund Bill

Neale Hanvey Excerpts

Committee stage & 2nd reading & 2nd reading: House of Commons & Committee: 1st sitting & Committee: 1st sitting: House of Commons
Tuesday 24th March 2020 Commons Chamber

[Christian Matheson]

I do accept that, but that would be the case in normal circumstances anyway. We are talking about giving people peace of mind during this national crisis and ensuring that people do not even have to live with the worry of being chucked out on the street or into temporary accommodation. That is my concern.

My right hon. Friend the Member for Hayes and Harlington reflected on his childhood in Liverpool and on his priest considering him to be a lapsed Catholic. That reminded me of my mum and dad, who also grew up in Liverpool, albeit a couple of decades or more before my right hon. Friend. The formative period of their childhood was the second world war, when they were both young children, suffering the bombings in Liverpool and the uncertainty of the war. We all know that the second world war in Europe ended formally on 7 May 1945, but my mum and dad did not know that—they had no idea when the hostilities would end and things might start to get better. Listening to my right hon. Friend, I reflected that that is the situation in which we find ourselves now.

We have no idea how long this crisis is likely to last. That uncertainty drives desperation, anxiety and as the hon. Member for Hitchin and Harpenden (Bim Afolami) and my good friend the hon. Member for Thirsk and Malton (Kevin Hollinrake) said, business uncertainty. That is why it is essential that the Government are clear in their statements and oblige other businesses—we have talked about the banks; I want to consider insurance companies—to ensure that they play their part. If we cannot plan ahead, we will not know how to address the problems, and it cannot simply be down to the Government.

I make that point because insurance companies are not living up to their obligations. I know of businesses in Chester that have been told that their business contributions to insurance do not apply because coronavirus was not a notifiable disease at the time of the outbreak or because the Government had only suggested, as was the case last week, that events did not take place rather than saying that they must not take place. As I mentioned at Question Time, for events, conferences and sports that have a long lead-in time to prepare, it would help if the Government were clearer now that those businesses could not get back up and running for four or six months and that insurance companies should ensure that their policies kick in.

[Neale Hanvey (Kirkcaldy and Cowdenbeath) (Ind)]

The hon. Gentleman talked about the future and how we recover and rebuild after the crisis has passed, but does he agree that things have changed utterly and that footing the bill for covid-19 in the years ahead cannot fall to the people, and that the banks certainly should not be rewarded, as the right hon. Member for Kingston and Surbiton (Sir Edward Davey) suggested, with quantitative easing? It is important that we get this right. When we start to rebuild, it is important that people and organisations that have avoided and evaded tax are called to pay their fair share.

[Christian Matheson]

I thank the hon. Gentleman for his intervention. The world will change, but only if we lead and make that change ourselves. As regards quantitative easing, which the right hon. Member for Kingston and Surbiton (Sir Edward Davey) mentioned, I would be happy to give all that money to local authorities and let them spread it out to places that really need it.

The hon. Member for Thirsk and Malton, who is a good friend, and has respect across the House for his work on the all-party parliamentary group on fair business banking, is right to talk about the banks, not only now, but in the future, when this is all over. We must ensure that they do not get up to the same games by looking at businesses and saying, “Your income’s declined, so we’ll start foreclosing on some of your assets.” That has happened before. I call on Ministers to give close attention to the way that banks operate, not only now, but afterwards, and ensure that they play their part.

In this crisis, there will be heroes and villains. We will remember the heroes and we will also remember the villains. I call on employers such as banks and insurance companies not to make their staff go to work if they are in a vulnerable group. I am getting complaints from constituents that they are being forced to go to work. Mike Ashley and Mr Wetherspoon should not flout Government advice just because their bottom line might be affected. We will remember the villains. I say, “Don’t be a villain at the end of this” because hopefully, those companies and corporations will receive the short shrift they deserve.

Oral Answers to Questions

Neale Hanvey Excerpts

Tuesday 24th March 2020 Commons Chamber

[Rishi Sunak]

My hon. Friend is right, especially given his constituency, to highlight the importance of airlines and airports. They have been particularly impacted by what is happening. I am in active dialogue with the Secretary of State for Transport and expect to write soon on that matter.

[Neale Hanvey (Kirkcaldy and Cowdenbeath) (Ind)]

In Kirkcaldy and Cowdenbeath and other constituencies, public service workers, not bankers or nuclear weapons, will get us through this crisis. We must therefore change our focus. Will the Chancellor consider whether the nurses, doctors and other public service workers, who will be doing double shifts and working extra hours to get us through, can get tax relief on those extra hours so that they are properly rewarded and recognised for their tremendous efforts?

[Rishi Sunak]

We pay tribute to our public sector workers, particularly those who are on the frontline of the NHS as we speak. We have said that we will make any and all funding available to the NHS to provide and support that workforce. That is exactly what we are doing, as my right hon. Friend the Chief Secretary outlined earlier. In the Budget, we specifically changed the taper relief, which was causing hours challenges for senior doctors and GPs. That was a significant fiscal intervention—we are providing more than £2 billion of tax relief to ensure that there is no disincentive for those senior clinicians to provide the extra work at this time.

Coronavirus Bill

Neale Hanvey Excerpts

Committee stage & 3rd reading & 3rd reading: House of Commons & Committee: 1st sitting & Committee: 1st sitting: House of Commons
Monday 23rd March 2020 Commons Chamber

[Penny Mordaunt]

I will make a little progress, because there is quite a lot that I have not managed to say at the Dispatch Box yet.

We will therefore be able to carry out the will of Parliament quickly and efficiently, and this mechanism gives the House of Commons the final say on how the powers in this Act are to be used. I note the pragmatic suggestions of my right hon. Friend the Member for Haltemprice and Howden (Mr Davis), but I do not think that anything he says about future legislation or measures that we wish to bring in, or indeed the House being able to express a view, is negated by the way we have set this out. Each of the four countries of the UK has its own set of laws, and these tools and powers differ to varying degrees in each area.

[Neale Hanvey (Kirkcaldy and Cowdenbeath) (Ind)]

Will the Minister give way?

[Penny Mordaunt]

I will make a little progress; sorry, but I have not had much time.

Consistency of outcome will be achieved by making a range of tools and powers consistent across the UK. That is just one part of the overall solution but a vital part nevertheless. A two-year overall lifespan for this Act has been chosen to ensure that its powers remain available for a reasonable length of time, with the option of provisions in the Act being extended by the relevant national authority. A reasonable worst-case scenario for this outbreak is that it could last for over a year, and therefore some of the provisions in the Bill will need to be in place for up to two years. Equally, the Bill provides a mechanism for early sunsetting, but we cannot guarantee that one year will be enough nor predict which powers will be required for how long.

Coronavirus: Employment Support

Neale Hanvey Excerpts

Thursday 19th March 2020 Commons Chamber

[John Glen]

We will do what it takes to support workers who are in distress. We have brought forward a package of measures, some of which will be imminently delivered, such as the unprecedented loan scheme. We have also added a number of grant schemes available through local authorities and reliefs from business rates, and additional measures will be coming imminently.

[Neale Hanvey (Kirkcaldy and Cowdenbeath) (Ind)]

The Links market is the largest street fair in Europe and has been happening every spring for the last 700 years in Kirkcaldy. Unfortunately, as a result of coronavirus, the Scottish section of the Showmen’s Guild of Great Britain has had to take the reluctant decision to postpone the event this year. That is going to cause significant hardship for their members. It will also have a significant impact on the local economy because it attracts many visitors. What support will be available to get them through this difficult time and preserve their important fair?

[John Glen]

The hon. Gentleman highlights what many colleagues are going to experience: events that have been planned and have been going on for many, many decades will be cancelled as a result of what is happening. The package of measures that we have announced will be accessible to many of those people. The sectors that are involved will sometimes have sector-specific packages, where there has been a direct effect as a consequence of Government decisions, and we are urgently working on a broader package with respect to employees.

Loan Charge 2019: Sir Amyas Morse Review

Neale Hanvey Excerpts

Thursday 19th March 2020 Commons Chamber

[Neale Hanvey (Kirkcaldy and Cowdenbeath) (Ind)]

It is indisputable that everyone should pay their fair share of tax to fund our public services, and if recent events have taught us anything, they have illustrated that we all rely on the response of those services and that any future threat of funding must be resisted. However, the Government’s current position on this issue is, frankly, quite wrong and unjust. At £35 billion, the Government’s official estimate of tax losses is now the highest it has ever been, yet the true figure of tax avoidance by the super-rich and corporations could be as high as £120 billion a year.

My constituent Doug Aitken is facing a significant bill as a result of the loan charge. This is money that he simply does not have, and if HMRC persists, he will lose his home and his car, and, because he is self-employed, the resulting bankruptcy will lead to the loss of his business and his personal contribution to the Exchequer. Like many, he took independent advice from tax experts before entering the scheme and was reassured that it was operating entirely within the law. He declared his income and submitted his tax returns. He set money aside, ready to pay any tax liabilities, and he kept the money for the HMRC look-back period. He is not alone; a number of other constituents have contacted me about this matter. Some are retired or are now surviving on benefits. They simply do not have the resources to pay. Others have spoken of the significant impact on their mental health. Although the changes to the look-back period from the Morse report may exempt thousands from being pursued, thousands more are still facing the prospect of absolute financial ruin. This is nothing short of a disgrace and meaningful recovery is very unlikely, whereas bankruptcy is almost certain.

In closing, I would like to offer my reflections on the key argument put forward by Sir Amyas in favour of recovery. In his recent contribution to The House magazine, he explained that the advice he took about legality was from tax experts. However, he also notes that the contributions from those who entered the scheme’s evidence that they did not understand the implications—that is, they are not tax experts. Although Sir Amyas might have sympathy with the loan charge recipients, pursuing them now is very unlikely to lead to any meaningful recovery.

I previously served the health service ombudsman as a clinical expert, and I was advised that I should not assess the treatment and care provided against my gold standard practice level. Rather, my judgment should be tempered to a level of what one could reasonably expect. I would respectfully suggest that the current policy has measured those in the grip of HMRC over the loan charge against the gold standard of tax experts and not, as it should have, against the standard of what one would reasonably expect a lay person to understand. Although I firmly believe that individuals should pay the taxes they owe, ruinous action from HMRC will help no one. The Government must act now to completely remove all retrospective action.