HMRC and Google (Settlement)

Nick Smith Excerpts

Monday 25th January 2016 Commons Chamber

[Mr Gauke]

On the latter question, it may be the case that astronomers have located the ninth planet, but I am not sure that they have found any evidence of the Labour party doing very much on tax avoidance in government.

[Nick Smith (Blaenau Gwent) (Lab)]

May I gently chide the Minister, particularly given his last remark? Will he acknowledge the work of the cross-party Public Accounts Committee in the last Parliament? Its campaign on fair taxes by multinational companies was chaired by a Labour MP, the right hon. Member for Barking (Dame Margaret Hodge)?

[Mr Gauke]

There has been a shift in public opinion in recent years, and the pressure on companies to pay the tax that is due under the law is greater than ever before. I welcome that, and I welcome that change in public opinion, but it is the measures taken by this Government that mean that we are getting additional sums from large companies, as has been demonstrated in the past couple of days.

Oral Answers to Questions

Nick Smith Excerpts

Tuesday 19th January 2016 Commons Chamber

[Mr Gauke]

At the moment, call handling is at a higher level than it has been for many years. It was certainly the case that in spring of last year call handling standards were not at an acceptable level, but HMRC has made significant improvements and I hope it will continue to make progress.

[Nick Smith (Blaenau Gwent) (Lab)]

14. What his plans are for future funding of illegal money lending teams.

[The Economic Secretary to the Treasury (Harriett Baldwin)]

The Government are exploring options to ensure that the England and Wales illegal money lending teams have the funding they need to ensure that consumers continue to be protected from illegal loan sharks, and are confident of transitional arrangements being agreed.

[Nick Smith]

Too many of my constituents are victims of loan sharks. The illegal money lending team has helped nearly 24,000 victims across the country, yet the Government have treated the service with disdain. Will the cuts to this vital team and to local employment standards not make the poorest more vulnerable?

[Harriett Baldwin]

Far from agreeing with the hon. Gentleman, I must say that the Government are finding ways to put the team on a sustainable basis to continue the valuable work it does to protect people from illegal money lending.

Electoral Integrity and Absent Votes

Nick Smith Excerpts

Wednesday 9th December 2015 Westminster Hall

[Jonathan Lord (Woking) (Con)]

I congratulate my hon. Friend the Member for Peterborough (Mr Jackson) on securing this important debate. I wish to expand on just a couple of points in the time allowed. First, I congratulate the Government on holding firm on individual electoral registration and the timescales in which that is to be introduced. That is an important step forward in combating potential fraud.

Secondly, I listened with great interest to the hon. Member for Strangford (Jim Shannon) who spoke about the steps that have been taken over time to secure the sanctity of the ballot in Northern Ireland. Yet we have heard from my hon. Friend the Member for Peterborough that there are troubles now in England, particularly in some of our major cities. It is time that the Government took seriously the fraud issues that are, unfortunately, taking place in some of our towns and cities and considered very carefully whether we should not be introducing some of the safeguards that were introduced in Northern Ireland some time ago.

I am personally coming around to the idea of showing some form of ID at the polling station. My hon. Friend talked at length about the postal ballot and I am interested in the Minister’s reply. In respect of potential impersonation at the polling station, nothing can be more frustrating for a resident citizen of our country than to turn up at the polling station and be told, as happens in a few cases in every election, “I’m sorry—supposedly you’ve already voted.” Requiring no form of ID to be shown at a polling station remains a loophole for those who want to commit fraud.

[Nick Smith (Blaenau Gwent) (Lab)]

What is the hon. Gentleman’s assessment of the level of impersonation at polling stations that would necessitate people’s bringing ID with them when they go to vote?

--- Later in debate ---

[Jonathan Lord]

The hon. Gentleman makes that point extremely powerfully. All that someone needs to commit electoral fraud under our system is a really good telling regime at the polling station; to knock out the postal voters; then, in the dying hours of polling, they can send people along to impersonate those people who the system shows have not already voted. That is exactly what used to happen in too many towns in Northern Ireland, I am afraid. We do not know for sure to what extent it might be happening here.

[Nick Smith]

The hon. Gentleman is making a serious accusation that vote rigging might be taking place in some parts of the country. Does he have any concrete examples to back up his case?

[Jonathan Lord]

As I said earlier, after every single election, whether it is a nationwide election or a large set of local elections, there are always people who go to their local paper—the hon. Gentleman can look through the cuttings—or who complain to the returning officer, “I went to the polling station to vote, but I was told that my vote had already been cast.”

The evidence is not strong in the way that perhaps it was in Northern Ireland, but it is a loophole in our system. As the hon. Member for Strangford says, it does not have to be a passport or driving licence, but requiring any picture ID, at the very least, would make it incredibly difficult to perpetrate a major fraud, because people who wanted to do so would have to forge lots of bus passes or similar items. I would be interested if the Minister gave us some feedback on that issue, as well as on postal voting, which was comprehensively covered by my hon. Friend the Member for Peterborough.

--- Later in debate ---

[John Penrose]

We should take that as a further submission to the proposals of my right hon. Friend the Member for Brentwood and Ongar.

[Nick Smith]

Will the Minister give way?

[John Penrose]

Very briefly, but then I must try to finish.

[Nick Smith]

The hon. Member for Peterborough (Mr Jackson) has rightly outlined examples of voter fraud that, if true, should be addressed with the full force of the law. Does the Minister agree that any future electoral law should have the right mix of safeguards and things to encourage voter participation? Will he please look into the possibility of credit reference agencies providing extra data to boost voter registration?

[John Penrose]

The hon. Gentleman mentioned this issue to me in oral questions earlier today. I encouraged him then and encourage him now to provide me with further details of his proposal. I am very interested at looking into that matter. It is potentially useful. There are many other sources of data that can be used to verify registrations, and we want to look at them all if we can. In the modern digital world, it seems a sensible avenue to explore.

At the root of the debate, we have a contradiction. We have modest levels of electoral fraud cases—I have already given everyone the figures for the past three or four years—but we can all see that, in principle, our processes and controls are pretty light-touch. We can all think of theoretical ways in which someone might be able to indulge in electoral fraud, were they so minded. In all our minds, there will always be a nagging concern that even though there may not be that many electoral fraud cases, there could be a cohort of people that we are not aware of taking advantage of this relatively trust-based system. That is the concern behind this debate and the ongoing public debate. To summarise it in a sentence, absence of evidence is not necessarily evidence of absence. That is our concern.

I therefore want to reassure everyone that there is no complacency in the Government on this tremendously important issue. A number of people have mentioned in the course of the debate that there is some self-policing, because political rivals will naturally keep an eye on each other. That is good, but we have also heard examples of loopholes or potential flaws in the process that would allow some things to go unremarked, even where there is a strong political culture of rivalry. We should clearly consider applying the precautionary principle here, provided that we can do so with the satisfactory light touch.

What have we done so far? There has been the introduction of individual elector registration. ID is therefore verified and it makes inventing people a great deal harder. It also makes family influence and patriarchy less important. We have also made postal votes a great deal more controlled. People now have to put a signature on a postal vote, and every single signature is matched up when that postal vote is opened. There was an initial problem in Scotland, which the hon. Member for Edinburgh East (Tommy Sheppard) mentioned, but the system is now running much more smoothly. There is much greater security around polling stations too, which is essential, particularly when one reads some of the judgments about what was happening in Tower Hamlets.

Finally, I want to back up the point that a number of colleagues made about voter education. One of the most fundamental ways of guarding against undue influence, whether spiritual, familial or any other form, is to educate people from the earliest moment that their vote is genuinely secret and that they are absolutely entitled to tell anyone, whether they are a family member, religious leader or politician, to take a hike if they want to find out how someone voted or to influence the way they are planning to vote. That is an attitude of robust independence that we need to inculcate in all our young people and, if necessary, all adults too. With that, I will sit down to let my hon. Friend the Member for Peterborough have a final word. I reiterate that if anyone wants to make any further comments to my right hon. Friend the Member for Brentwood and Ongar, his door is open.

Oral Answers to Questions

Nick Smith Excerpts

Wednesday 9th December 2015 Commons Chamber

[Nick Smith (Blaenau Gwent) (Lab)]

On the topic of using other ways to contact people to register to vote, has the Minister considered using credit reference agencies as a way to boost electoral registration?

[John Penrose]

That is an intriguing and, to me, new idea. I would be very interested to hear anything more the hon. Gentleman has to suggest on that.

Individual Electoral Registration

Nick Smith Excerpts

Tuesday 20th October 2015 Westminster Hall

[Nick Smith (Blaenau Gwent) (Lab)]

I beg to move,

That this House has considered the matter of individual electoral registration.

For Parliament, 2015 has been a year for celebrating our democracy. Across the country, in schools, festivals and in the media, people have joined us in celebrating a journey that started 800 years ago with the signing of Magna Carta and led to our sitting here today. However, this year could end with a body blow to our democracy that could have repercussions for years to come.

The transition to individual electoral registration should reach its end in December 2016; instead, it has been brought forward by the Government to December 2015. The effects could be disastrous. According to the latest projections from the Electoral Commission, 1.9 million people are at risk of being removed from the electoral register. That number will drop as canvassers go door to door this autumn. Nevertheless, reasonable estimates produced by the Labour party suggest that close to a million people will be dropped from the register. That is a million people whose voices will no longer be recognised and who will be ignored when the Government begin to redraw the political landscape with the new boundaries.

That move goes against the advice of the independent Electoral Commission. It will not be subject to a vote in Parliament nor, apart from now, will MPs be given a certain chance to debate the important issues at stake. That is why today’s debate is so important. We need a Parliament that represents all its constituents in all its constituencies, but instead my borough of Blaenau Gwent had lost 1,736 people from the register by the time of the general election. It is projected that Wales will lose 68,000 people from the register in December, and that is unacceptable.

When the Labour Government legislated for the move to IER we put in a transition period with strong safeguards, but we can see from the numbers squeezed off the register by the current rushed transition that the Conservative Government’s haste will soon leave many people repenting at their leisure. There might be a view that this was a safe time to finalise the transition, as we have just completed a general election.

[Nick Thomas-Symonds (Torfaen) (Lab)]

I congratulate my hon. Friend on securing this debate on an issue that is absolutely key to our democracy. Does he agree with me that if there is to be the change to IER, together with the forthcoming change to the constituency boundaries, the Government’s responsibility to increase the safeguards, rather than bring forward the date by a year—as has happened—will be reinforced?

[Nick Smith]

The MP for my neighbouring constituency makes an important point, which gets to the crux of our discussion. May 2016 will feature big elections for the Welsh Assembly, the Scottish Parliament and the Mayor of London. People’s votes, across the UK, will be vital in shaping the country once more, and the boundary review of 2016, on which my hon. Friend touched, will shape it on a much more fundamental level.

Those people who are removed from the register in December 2015 will not be counted for the purposes of determining their representation in Parliament. If the shape of a constituency is drawn based on its reduced number of voters, we will soon be faced with a distorted electoral map. Large urban areas with multiple-occupancy housing and regular home movers are the areas that are set to be hit and, on a party political level, the urban areas affected coincide with traditional Labour representation. I would like to think that the Government would not rush in the IER process to tip the scales in their favour for future elections. However, how can we have confidence in the boundaries, even in London, when Hackney faces a nearly 23% drop-off in the number of registered voters? The average loss in Britain is calculated at almost 4%. The 10 poorest areas in Britain face an average projected loss of 6.2%.

We are in danger of shrinking the voice of our poorer communities. For people in those communities, falling from the register has consequences beyond that of losing the vote. It means, for example, losing the chance of obtaining safe, affordable credit in areas where loan sharks may ply their trade. It means public service provision dipping even lower, affecting everything from school places to GPs. My major concern is that it is already too late to fix that problem before the December deadline.

The student population is a good example of my last point.

[Christina Rees (Neath) (Lab)]

Does my hon. Friend agree that the Government should note the Association of Electoral Administrators’ recommendation that legislative changes should be implemented to allow electoral registration officers to block-register people in institutions such as sheltered accommodation and university halls of residence?

[Nick Smith]

My hon. Friend makes an important point on behalf of those people who do the hard yards in our democracy—electoral registration officers. They do not have a fashionable local government job, but they do their very best to boost our democracy and, as my hon. Friend says, they have been undermined in this instance.

To be fair, before the 2015 general election coalition Cabinet Office Ministers, the Electoral Commission and the National Union of Students sent a letter to university vice-chancellors across the UK asking for their support to ensure that students were registered to vote. Consequently, there was a big drive in universities to boost registration—fair do’s. We are now in a new academic year, however, with thousands of admissions to and departures from the universities, so the HOPE not hate group rang 54 universities asking about their work this year. Every university that responded said it was scaling down its efforts as there was no general election this year, with just four of them referring to plans to inform the new intake about voter registration in their welcome packs. That is a microcosm of the larger problem in high turnover areas. Without a sustained programme of action, any voter drive will work for a short period only.

Labour is doing its bit with the “missing million” push this weekend, led by my hon. Friend the Member for Ashfield (Gloria De Piero). It is one of our biggest registration drives ever. Labour students will be around campuses, colleagues will be touring community groups and local parties will be going door to door. That sort of work cannot, however, be sustained by volunteers alone, no matter how committed they are. A lot of the push has had to come from local authorities, who deserve credit for working hard despite the wider cuts and the new demands of the IER system.

Although information such as dates of birth and national insurance numbers is a good protection against fraud, it places further demands on electoral registration officers and that is why we need to support them by using all the available tools to find as many voters as possible. That means Departments and local authorities linking up their information and streamlining their processes. On this side of the House, my hon. Friend the Member for Sheffield Central (Paul Blomfield) deserves credit for doing that with his local university, the University of Sheffield, where they have integrated voter registration into the student registration process, leading to 64% of students registering to vote. That is a success story—fair do’s.

The more innovative methods we can use to take advantage of what we already have, the better. In my work on the Public Accounts Committee, I have seen some of the new ways in which Her Majesty’s Revenue and Customs is working. Since 2012, it has been making use of credit reference agency data to good effect. It has checked addresses and other information to see if everything is up to date and correct. That helped HMRC to reduce tax credit losses by £280 million between 2011 and 2014. Further afield, in California, a Bill has recently been signed that allows residents to be registered to vote when they obtain or renew a driver’s licence or a state identity card. The point is that we need to use more good and accurate databases to increase voter registration to protect and build our democracy.

[Emily Thornberry (Islington South and Finsbury) (Lab)]

It is a pleasure to have the opportunity to intervene in the debate. I compliment my hon. Friend; he was an excellent agent in Islington South in 2005 and has been an even better MP since for Wales.

Is it not right that we should all be democrats? We should all be trying to work to ensure that as many people as possible exercise their democratic right to vote. It is extraordinary, is it not, that the Government seem to be putting barriers in the way of people being on the register in order to exercise the power they should have simply because they are citizens?

[Nick Smith]

I thank my hon. Friend for her intervention. She does a brilliant job of boosting voter registration in Islington.

The Government are rushing the introduction of individual electoral registration. Next year’s elections are important and the boundaries for future constituencies will rely on an accurate register. The Government say that they want to boost our democracy, but their action undermines it. How many times have we, in this place, around this room, knocked on doors come election time, to be greeted by a person who has lost their opportunity to vote because of a registration problem? I see lots of nods. Why do we want to reject hundreds of thousands of students across the country by squeezing them off the register and telling them that their vote does not matter? Why do we want to undermine our voting system and threaten to exclude private renters, people from black, Asian and minority ethnic communities, the unemployed and lower-paid workers?

The Government must listen. They must hear the genuine concerns and allow more voters on to the register; otherwise, they do our democracy a great disservice.

[Several hon. Members rose—]

--- Later in debate ---

[John Penrose]

I was just coming on to that. I want to address the fundamental point about how we are going to deal with the problem of under-represented groups on our registers, which is crucial and underlies many of the concerns.

Let me move on to the timing of the transition to IER. As we have heard in many speeches today, there is a presumption that this process is going remove eligible voters from the electoral roll. I want fundamentally to question that presumption. During the course of a year a large number people on the electoral register—a very large number in some places, and in other places fewer people—move house. Some sadly die, and there are fraudulent entries in some parts of the country, although not in all—the hon. Member for Caerphilly (Wayne David) rightly said that fraud is not an issue in all parts of the country. That is the natural state of any database. It is natural for any electoral register to contain such data errors.

We have to sort through the 1.9 million people whose entries are incomplete and who had not made the transition as of the general election date of May this year to find which are genuine voters with a pulse—people who are eligible to vote. We need to identify them, confirm their ID in the way that we have been discussing and ensure that they are confirmed on the electoral register. Then the only entries left will be the people who are no longer there—the people who have moved, died or were never there in the first place because they were fraudulent.

[Nick Smith]

Will the Minister give way?

[John Penrose]

I will in a second. Let me finish this point.

That crucial distinction is absolutely central. It is not my intention—I am a democrat, like everybody else here—to get rid of any valid elector from any electoral roll anywhere.

--- Later in debate ---

[John Penrose]

I will give way to the hon. Member for Blaenau Gwent first.

That is why we have made it so simple for people to register to vote and why by the end of the year, with the £3 million of extra funding we have introduced, the remaining 1.9 million entries on the electoral roll will have been contacted up to nine times over the past 18 months—in some cases, more. They will have had their doors knocked on and their phones rung, and they will have had letters and emails. At the end of that process, the chances of a genuine voter with a pulse who lives in a particular area being disfranchised are vanishingly small. Even if, by some terrible mischance, after all that effort they are genuinely disfranchised and should be able to vote, it takes less time than it takes to boil an egg to re-register.

[Nick Smith]

It is good that people can vote online now, and I know it is a very efficient process. Of the 1.9 million people we are all worried about, what is the Minister’s assessment of how many will be registered after the numerous interventions he is talking about? How many extra people does he believe will be on the register?

[John Penrose]

I do not have that number yet because, as a number of the hon. Gentleman’s colleagues said, the autumn canvass is still going on. Because by definition those people were, without getting too Rumsfeldian about it, known unknowns, we were not sure how many were genuine people with a pulse and how many were data errors. Nobody will know the answer to that question until the autumn canvass process is complete.

Given that over 18 months those people will have been contacted nine times—in some cases more—in a variety of different ways, the chances of genuine voters being disfranchised is tiny. The fact is that the only entries left on the register, which will then be deleted, are the ones who are no longer there, not real voters. I hope we can all sign up to that crucial distinction. I am sure—we have heard this from a number of colleagues—that we would all sign up to the principle of keeping a clean register, which underpins the health of our democracy.

--- Later in debate ---

[Nick Smith]

It has been a pleasure to serve under your chairmanship, Mr Davies. We have had a really good debate. I want to thank Opposition colleagues who have contributed and added value. Strong contributions included that from my hon. Friend the Member for Dulwich and West Norwood (Helen Hayes), who made an important point about the equality impact assessment.

[John Penrose]

I have just remembered that I did not answer the question asked by the hon. Member for Dulwich and West Norwood (Helen Hayes). There was indeed an equality impact assessment.

[Nick Smith]

My hon. Friend the Member for Caerphilly (Wayne David) talked about the fundamental importance of registration for our democracy. The hon. Member for Dwyfor Meirionnydd (Liz Saville Roberts) had some good ideas about voter vouchers for 18-year-olds. The hon. Member for Edinburgh East (Tommy Sheppard) talked about how exciting campaigns can boost registration, which is the gold standard for us all.

We want exciting campaigns that energise our voters and promote democracy. We had interventions from my hon. Friends the Members for Neath (Christina Rees), for Islington South and Finsbury (Emily Thornberry), for Torfaen (Nick Thomas-Symonds) and for York Central (Rachael Maskell). My hon. Friend the Member for Liverpool, West Derby (Stephen Twigg) probed an important point about student registration.

In this important debate, I have tried to emphasise that bringing forward individual electoral registration at this time is a body blow to our democracy. Colleagues have highlighted under-registration in their constituencies, where key groups of people, such as those in rented accommodation and young people, are being squeezed off the register. The Minister made some constructive comments, and I look forward to reading his speech once he has given it in a few days. I would be grateful if he sent me a link.

[Wayne David]

He could send a copy to all of us.

[John Penrose]

indicated assent.

[Nick Smith]

All here present are good democrats who want to see progress in this area. Nevertheless, the Minister has failed to provide the Government’s assessment of how many of the 1.9 million people will be on the register after the Government’s intervention. It is a shame and a great pity that he failed to answer that important point. The Government have failed to listen to independent organisations such as the Electoral Commission and have done our democracy a disservice as a result. I hope that the Minister will take on board the messages of today’s debate, rethink the Government’s strategy and decide to build our democracy, rather than undermine it.

Question put and agreed to.

Resolved,

That this House has considered the matter of individual electoral registration.

Greece

Nick Smith Excerpts

Monday 29th June 2015 Commons Chamber

[Mr Osborne]

I can absolutely give that assurance to my hon. Friend and his constituents in North Devon: we are never going to join the euro. Because of all the conditions that come with membership, we do not think it would be in the economic interests of the United Kingdom. We have consistently held that position. I pay tribute to the person I used to work for and who has now left the House, William Hague, who stood out against the consensus in the late 1990s and helped keep Britain out of the euro.

[Nick Smith (Blaenau Gwent) (Lab)]

The Chancellor has said that UK citizens with deposits in Greek banks are not covered by our UK compensation scheme. How many UK citizens are affected by that and how does he plan to help them?

[Mr Osborne]

As I said in my statement, there are four branches of Greek banks in the UK. They have total deposits of about £200 million, which is, of course, a significant sum of money, but it is not that large compared with many other banking deposits, and the number of account holders is relatively low. I have made it very clear today that those account holders are not covered by the UK deposit protection scheme. I should also say that most of those individuals are not British citizens.

Budget Resolutions and Economic Situation

Nick Smith Excerpts

Friday 20th March 2015 Commons Chamber

[Nick Smith (Blaenau Gwent) (Lab)]

It is a pleasure to follow the right hon. Member for Somerton and Frome (Mr Heath), with whom I once spent an interesting and good week in a minibus in Nigeria, where we were supporting democracy with the Westminster Foundation for Democracy.

The Chancellor thinks we have never had it so good, but we in Blaenau Gwent know that is a long way from the truth. The only local growth we have seen under the Tories has been in food banks, payday loans and charity shops. More than 900,000 people used food banks last year nationwide. In my constituency, the payday loan company Wonga loaned more than £l million in my borough in just one year. Our valley towns have become run down, and there is no sign yet of that trend reversing. My constituents do not need empty claims that things are getting better; Blaenau Gwent needs jobs.

In recent years there have been some fantastic examples of good projects in the borough to boost our local economy, but the Chancellor does not deserve a shred of credit for the improvements that have occurred where the Tories have failed. Our housing association, Tai Calon, has invested over £100 million after negotiating with local banks to improve the quality of its social housing. Thousands of residents now have better kitchens and improved insulation.

The Welsh Labour Government, backed by European money, have improved, and continue to improve, our transport links. Road and rail are the arteries of any healthy economy. The Heads of the Valleys road improvements will allow commuters to get to the jobs they need and businesses to bring their jobs to Blaenau Gwent. That will also allow access to the Circuit of Wales project. Pleas to get the Conservative Government to back the project have so far fallen on deaf ears. In contrast, the Welsh Labour Government have provided important seedcorn money. Let us hope that the developers can now raise the £300 million needed to bring that venture to Blaenau Gwent.

Although we have not been cash-rich, with the Tories ensuring that their economic recovery passes us by, we are a borough that is rich in culture. Our brass bands and choirs have produced great talents that are still picking up national awards and acclaim to this day. The right hon. Member for Somerton and Frome nods—he knows the brass band world. It is obvious that, when we give our youngsters a culture of success, they produce time and again. The future of Blaenau Gwent is about not only celebrating our beautiful landscape—and we have plenty of that—but ensuring that those young talents are realised. The Circuit of Wales could bring thousands of jobs to the area, which is why we need to produce the work force to match.

The Labour-led council has improved the bricks and mortar of our schools, so now it is up to the professionals to deliver. That is why I am proud of Labour policies such as the jobs guarantee scheme, which will see 18 to 24-year-olds who have been out of a job for a year offered a paid role for six months. That is a massive deal for young people trying to get on to the employment ladder and will make a big difference in places such as Blaenau Gwent, where 16.2% of youngsters are still out of work. The Chancellor’s policies, however, have passed Blaenau Gwent by.

We were the birthplace of the NHS, but the Chancellor found no time to discuss the extreme budget cuts that could put it at risk. Tory tax changes such as the VAT rise have left families poorer than they were when the Government came to power. Working families are worse off while millionaires enjoy tax cuts. The coming election remains a choice between a Tory plan that is failing working families and Labour’s better plan, which will put working families first and save our NHS. We need a Labour Government for a better future.

Oral Answers to Questions

Nick Smith Excerpts

Tuesday 27th January 2015 Commons Chamber

[Mr Gauke]

My hon. Friend is absolutely right to make that point, and there has been an increase—[Interruption.] It is a point that bears repeating. Members really should take in the fact that, under this Government, we have seen a significant increase in HMRC’s yield. HMRC is more effective than ever in dealing with tax evasion and tax avoidance.

[Nick Smith (Blaenau Gwent) (Lab)]

Two thirds of people getting tax credits are in work, so why does the Chancellor want to cut tax credits again? That will penalise hard-working families.

Oral Answers to Questions

Nick Smith Excerpts

Tuesday 4th November 2014 Commons Chamber

[Mr Gauke]

I am sure that the Chancellor can explain that, but as I am already at the Dispatch Box, I will answer the question. The UK has very much led the way in the OECD base erosion and profit shifting process, ensuring that the international tax system is fit for purpose. We have made good progress on that, but there is still work to do.

[Nick Smith (Blaenau Gwent) (Lab)]

18. Does the Minister think that there is any link between the deep cuts to HMRC staff, particularly in Cardiff, and the uncollected tax that is rising under this Government?

[Mr Gauke]

As I say, what has happened under this Government is that the yield brought in by HMRC has increased year after year. The tax gap is lower for 2012-13 than it was in any year under the previous Labour Government. In truth, the record of HMRC is one of getting more from less, but we have invested in the areas that bring in money on tax avoidance and tax evasion.

Oral Answers to Questions

Nick Smith Excerpts

Tuesday 2nd September 2014 Commons Chamber

[Mr Gauke]

The hon. Lady raises an important point and I hope that we can say more about the steps that we can take to help businesses in Northern Ireland in particular that have been affected by this issue.

[Nick Smith (Blaenau Gwent) (Lab)]

9. What recent representations he has made to institutions of the EU on the cap on bank bonuses.

[The Economic Secretary to the Treasury (Andrea Leadsom)]

The Government are challenging the bank bonus cap provisions under EU capital requirements directive IV. We think that those rules will undermine the progress that we have made to make sure that bankers’ pay is aligned with long-term performance and that there are no rewards for failure or wrongdoing.

[Nick Smith]

The Chancellor was much too complacent earlier. Youth unemployment in Blaenau Gwent is still way too high. Why do the Government refuse to repeat the tax on bank bonuses? That could fund guaranteed jobs for young people throughout the UK.

[Andrea Leadsom]

As the hon. Gentleman will know, the Government have instead introduced a permanent bank levy on bankers’ balance sheets, which, according to the Office for Budget Responsibility, will raise £8 billion during the life of this Parliament, and up to £18 billion by 2018-19, so they are paying a fair share towards our economic recovery.