Finance (No. 2) Bill

Debate between Neale Hanvey and Nigel Huddleston

2nd reading
Wednesday 17th April 2024 Commons Chamber

[Neale Hanvey]

Can the Minister not see the perversity of spending Scottish revenue abroad while jobs in Scotland are wilfully put at risk by this Government?

[Nigel Huddleston]

I could not disagree more with the hon. Member’s premise. If anybody has shown support for the sector, this Government have. We have shown huge support for the sector, in an appropriate and proportionate way, while also encouraging the industry to decarbonise. As I said, we are taking fiscally responsible decisions to extend the energy profits levy for one year. We are also providing confidence and certainty to businesses in the sector by legislating for an energy profits levy price floor. That is what is in the Bill. That will effectively abolish the energy profits levy if the six-month average for both oil and gas is at or below a set threshold. Doing so was the sector’s main ask in the 2024 spring Budget, and it could help to unlock around £9 billion in uncommitted investment spend, according to Offshore Energies UK, which welcomed the decision. I am sorry that he feels unable to welcome it as well.

Those measures will ensure that investment in our economy continues to grow. I will now outline some measures in the Bill’s property package. The Bill will cut the higher rate of capital gains tax on residential property from 28% to 24%, encouraging landlords and second home owners to sell their properties, which could increase revenues because there would be more transactions.

Loan Charge

Debate between Neale Hanvey and Nigel Huddleston

Thursday 18th January 2024 Commons Chamber

[Nigel Huddleston]

I thank you for that guidance, Madam Deputy Speaker. I will try to proceed through the comments, because I am keen to make a few more points.

The Morse review followed the normal process for such reviews, in terms of the secretariat and support being provided by Government Departments. I have heard the comments made today, but I do not believe a case has been made for another review. I always stand ready to listen, but I think that review stood up quite well. I do not think anybody has impugned the integrity of Lord Morse today, but that review was thorough and significant, and 19 of the recommended changes were implemented. It was a hugely impactful and very thorough review.

Many hon. Members have also made points about tackling promoters, and some individuals facing the loan charge feel rightly aggrieved at the promoters and enablers who facilitated the use of these schemes. Promoters of tax avoidance schemes are parasites on the tax system—let us be in no doubt about that. They cause untold misery to the people they tempt into using those schemes, which almost never deliver the tax savings that were promised. The Government have prioritised tackling promoters of tax avoidance schemes and have given HMRC additional powers to do so, as a result of which many promoters have stopped promoting those types of scheme. One individual involved in the promotion of schemes subject to the loan charge has already been convicted, and others are currently under criminal investigation for offences linked to the loan charge.

Through Finance Acts in 2021 and 2022, the Government also introduced powers that allow HMRC to take action more quickly against promoters. Those include the power to publish details of promoters of tax avoidance schemes and others involved in the implementation of such schemes. In 2022, for example, HMRC issued a penalty of £1 million to a promoter of disguised remuneration schemes, and provisions included in the Finance Bill currently progressing through this House will make it a criminal offence to promote tax avoidance schemes after HMRC has issued a stop notice under the promoters of tax avoidance schemes rules. I am very pleased to say that those measures are receiving support from all parties.

The Government also consulted last summer on measures to address non-compliance in the umbrella company market—again, many hon. Members have commented on that market today—including tackling the types of schemes we have discussed. We will respond to that consultation in due course, but I can let hon. Members know that I and my hon. Friend the Member for Thirsk and Malton (Kevin Hollinrake), the Minister for small business at the Department for Business and Trade, are already discussing what the next steps should be. In the meantime, HMRC will continue to use its full range of civil and criminal powers to disrupt the operations of promoters.

[Neale Hanvey]

Will the Minister give way?

[Nigel Huddleston]

Very briefly, and for the last time.

[Madam Deputy Speaker (Dame Rosie Winterton)]

I really am getting anxious—we do need to move on very quickly. I call Neale Hanvey, if he can be brief.

Oral Answers to Questions

Debate between Neale Hanvey and Nigel Huddleston

Thursday 29th June 2023 Commons Chamber

[Nigel Huddleston]

I refer the hon. Lady to the answer I gave a moment ago, but I wish to reiterate that it is long-standing UK foreign policy that Israeli settlements beyond the 1967 boundaries are illegal.

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

8. What recent assessment her Department has made of the potential effect of the UK’s withdrawal from the European single market on business and trade.

Oral Answers to Questions

Debate between Neale Hanvey and Nigel Huddleston

Thursday 1st July 2021 Commons Chamber

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

What further steps the Government plans to take to support travel agencies as part of the implementation of the tourism recovery plan.

[The Parliamentary Under-Secretary of State for Digital, Culture, Media and Sport (Nigel Huddleston)]

The Government have provided more than £25 billion in support to the tourism, hospitality and leisure sectors over the course of the pandemic. We are continuing to support travel agents with, for example, restart grants and the extended furlough scheme. Our tourism recovery plan sets out a range of measures to support the sector, with the aim of recovering domestic tourism to pre-pandemic levels by 2022 and international travel by 2023, both at least a year faster than independent forecasters predict.

[Neale Hanvey [V]]

The headline numbers—that £25 billion—tell only part of the story. Unfortunately, because of the asymmetry of the Government support and the asymmetry of the travel recovery plan, much of that money has not found its way into the hands of travel agents such as Moorelands Travel and Travel Your World in my Kirkaldy and Cowdenbeath constituency. These family-run small and medium-sized enterprises have, like many others across the country, kept the lights on for the travel industry. They have given their all and sold the silver, and there is nothing left to give. They now face the possibility of going under. That will disrupt holidays and the travel recovery itself, so will the Minister explain to them—not to me—why their efforts and their businesses no longer matter?

[Nigel Huddleston]

The hon. Gentleman’s final comment is an unfortunate characterisation. He will be aware that many elements of the tourism sector are devolved matters, but we are working co-operatively with the Scottish Government on many issues. The Scottish Government have developed their recovery plan and we have developed one as well, and it does have UK-wide implications. For those sectors in England that have been unable to get grants and support automatically, we have put in place measures to help them, such as the additional restrictions grant. We will continue to assess support measures.