Finance (No. 2) Bill

Nigel Evans Excerpts

Committee stage
Wednesday 1st December 2021 Commons Chamber

[James Murray]

Thank you, Mr Evans, for the opportunity to respond on behalf of the Opposition to the clauses selected for this debate on particular aspects of the operation of VAT. As the scope of these clauses is quite limited, I suspect that you will not allow me to speak in detail about our call on the Government immediately to cut VAT to zero on domestic energy bills.

[The Second Deputy Chairman of Ways and Means (Mr Nigel Evans)]

That’s right.

[James Murray]

Of course, we believe that such a change would offer immediate help now for people struggling with the cost of living over the winter ahead. I therefore urge the Chancellor to reconsider the Government’s refusal of our suggestion, even at this late stage.

Let me turn to the specific measures in the Bill. As we have heard, clauses 68 to 71 make a number of changes to the operation of VAT as it relates to Northern Ireland. Clause 68 allows motor dealers in Northern Ireland to continue to sell vehicles under the second-hand margin scheme, provided that they were sourced in Great Britain or the Isle of Man. This is a temporary measure before a more permanent scheme comes into place. It is, in effect, a technical change to reduce VAT on car dealers in Northern Ireland, and we do not oppose it. We understand that clauses 69 and 70 are necessary consequences of clause 68 to avoid the interim provisions being created for second-hand car sales in Northern Ireland leading to a distortion in the UK market, so we do not oppose them either.

Clause 71 similarly means that registered dentists or dental care professionals, or those importing on their behalf, can exempt from VAT the importation of dental prostheses—medical devices to replace broken or missing teeth. Domestic supplies of such goods are exempt from VAT when made by a registered dental professional. However, under the Northern Ireland protocol, movements of goods between Great Britain and Northern Ireland will technically be treated as exports and imports for VAT purposes. Applying the same VAT treatment to domestic supplies and imports will ensure the equal treatment of dental prostheses supplied within the UK. Again, we do not oppose this measure, as we do not want to see businesses or other workers in Northern Ireland at a disadvantage compared with those in other parts of the UK.

Clause 93 and schedule 14 relate to free zones—secure customs sites within a wider freeport area. Existing regulations already provide for the zero rating of certain supplies of goods and services in free zones, and the purpose of the clause is to put in place an exit charge to ensure that businesses do not gain unintended advantage from the zero rate. Again, we recognise the role this measure plays and we will not be opposing it.

Budget Resolutions

Nigel Evans Excerpts

Wednesday 27th October 2021 Commons Chamber

[Several hon. Members rose—]

[Mr Deputy Speaker (Mr Nigel Evans)]

Order. I remind everybody that Dame Eleanor suggested contributions of between seven and eight minutes in order that people lower down the list will get fairly equal time as well. Mr Grayling, you did that—congratulations—but the average is 11 minutes, so please could people be a little bit more conscious of the timing of their contributions?

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[Dame Andrea Leadsom (South Northamptonshire) (Con)]

What a fantastic Budget. It is fantastic for all sorts of reasons. It demonstrates how incredibly well our Chancellor and our Government did during the covid pandemic in supporting lives and livelihoods. The much more optimistic economic forecasts that have come out are testament to the effort that was put in and the result that we are starting to see.

The Budget is also fantastic for the support it gives to the leisure and hospitality sector, which will help businesses in South Northamptonshire. I thank my right hon. and learned Friend the Financial Secretary to the Treasury, who is sitting on the Front Bench, for that.

Many people wrote to me about universal credit, and the taper will help people who are in work and receive universal credit. Speaking as a former Business Secretary, the investment in R&D is superb. It will create the jobs—particularly the green jobs—and productivity that we want to see across our country.

The Budget is particularly fantastic, however, because of babies. I happen to be holding “The Best Start for Life”—it is not a prop, merely something to lean on. I thank the Prime Minister, the Chancellor, the whole Front-Bench team and many Opposition and Conservative Members for their commitment for many years to making sure that every family gets the support they need to give their baby the best start for life. The Prime Minister is totally committed to that, as is the former Prime Minister, my right hon. Friend the Member for Maidenhead (Mrs May). When she asked me to chair an inter-ministerial group to look at the early years, she was completely clear that babies are vital. On that inter-ministerial group a couple of years ago were two Ministers, one of whom was Rishi Sunak, a local government Minister, and the other was Nadhim Zahawi—

[Mr Deputy Speaker (Mr Nigel Evans)]

Order. The right hon. Member for Richmond (Yorks) (Rishi Sunak) and the right hon. Member for Stratford-on-Avon (Nadhim Zahawi).

[Dame Andrea Leadsom]

Thank you, Mr Deputy Speaker. I should know that by now.

Of course, those Ministers have gone on to fulfil a fantastic pledge for every baby. I also pay tribute to parents and carers across England for their amazing contribution and their determination to have their voices heard and to make sure that “The Best Start for Life” works for all parents and carers.

I will take a moment to explain why that period of life is vital. Essentially, human babies are unique in the animal kingdom in the extent of their underdevelopment at birth. Every other animal can fend for itself pretty well from minutes, or at least hours, after it is born. Human babies cannot do anything for themselves until they are at least one year old, and often they are two before they can really fend for themselves.

The physical and brain underdevelopment of human babies means that they adapt to the environment in which they find themselves, so the baby who is born into a secure and happy home with a loving family will grow up learning that as an instinct for life. They will be able to do well at school, make friends, learn, get a job, hold down friendships and relationships, and then be a good parent themselves. Conversely, the baby who is born into a situation where there is interparental conflict, drug or alcohol misuse, mental health problems or severe deprivation will not have the same life chances. All the research demonstrates in spades that, for those babies, life is much harder. Their instinct for life is not good and they often go on to have all sorts of problems.

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[Ed Davey (Kingston and Surbiton) (LD)]

My hon. Friend is making a powerful speech on behalf of children, parents and teachers across our country. Is she aware that, in the fine detail of the Budget, banks are getting a tax cut that is bigger than the increase announced today for catch-up funding? Does she agree that is the wrong priority?

[Mr Deputy Speaker (Mr Nigel Evans)]

Order. If people are going to intervene, they should at least have the good grace to come in a few speakers before.

[Christine Jardine]

I thank my right hon. Friend the Member for Kingston and Surbiton (Ed Davey) for his intervention, and I will address the Government’s strange priorities.

Under this Chancellor we have seen the highest tax burden since the second world war and the lowest school spending per pupil in a generation. Increasing funding per pupil by 2025 will come too late for millions of children whose life chances are being dashed. That is the choice the Chancellor has made, and it is the wrong choice.

Many of us in this place come from a background in which education was our passport to a better future. Our families had the support they needed to enable us to be the first in our family to go to university, and I do not want to deny that chance to this generation. The Chancellor’s announcement on universal credit is giving just a third of what he snatched away, and millions of families who are not in work will not be helped at all. What will their winter be like? Those parents will be choosing between eating and heating. For those who get the disparaging increase in the minimum wage, it has already been eaten up by the national insurance hike.

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[Seema Malhotra (Feltham and Heston) (Lab/Co-op)]

It is a pleasure to speak in the debate and follow many important contributions from Members across the House. It is disappointing that we heard very little that was new, or that was not pre-announced. It is frustrating that Parliament seems to be a sideshow when it comes to the Government making important decisions.

Moving on to the content of the Budget, a test for the Budget is whether it makes life easier or harder for businesses and families across the UK, and whether it takes the steps necessary to tackle the increase in the cost of living which we all know families in our constituencies face. The Chancellor’s choices today will shape how well children can learn; who goes to bed hungry; and how our businesses, which have been on the frontline, can not just survive but can be equipped and prepared for the future.

It is a shame that the Chancellor seems to have chosen a tax cut for bankers that is bigger than the extra funding that he is providing for children to catch up. Even that as a total is a third of what was recommended by the Government tsar. That was not a random figure of £15 billion picked out from a hat; it was based on research and evidence, and on understanding what children across the country needed to get through and catch up because of what they faced and how they were held back during the pandemic. They must continue to be at the front of our minds in this House.

This winter, the country faces a cost of living crisis of historic proportions. Fuel shortages, rising energy prices, the Government’s supply chain crisis and price inflation have hit families across the UK. A recent survey by 38 Degrees in Feltham and Heston found that 90% of respondents were concerned about their current supply of critical food and goods. Sixty-four per cent. of respondents had observed insufficient stock in their supermarket. The price of fruit and vegetables is up, and half of respondents had seen a rise in their energy bills. In the past few weeks, the Office for National Statistics has reported that 8 million Britons have been unable to buy essential food items, while grocery prices are reported to be 1.7% higher than last year.

These changes cannot be denied, and they have been compounded by the Government’s cruel decision—and it was cruel—to cut universal credit for six million families this winter, taking £20 a week from the pockets of families at time when prices are rising. In Feltham and Heston, 18,000 households are worse off as a result of the cut. £18 million has been cut from our local economy. Where was the £20 for universal credit going? It was not going into offshore tax havens; it was being spent by families, on families, in our businesses, in our communities and on our high streets. Returning what appears to be £2 billion through changes to the tapering of universal credit is welcome, and is an important step, but it does not go far enough. It will support some people, but not all, and there will still be millions of families who, just by trying to get through, will end up going into debt, with all the consequent problems that that brings. The Chancellor knows that, food banks know it, and the citizens advice bureau knows it. Everyone who looks at families’ income and the impact of the universal credit cut knows it.

I am glad that the Government have at least taken the advice of the Low Pay Commission to increase the minimum wage. I welcome this, but it needs to go further, and to a minimum of £10; good employers such as Morrisons have already increased wages to a minimum of £10 for all their employees. Many families are still going to struggle, however, even before taking into account the likely rise in gas and electricity prices next year, but there are no measures today to assist householders with rising domestic gas and electricity bills.

Meanwhile, many businesses are approaching what should be their most profitable period of the year yet are in great danger of insolvency, faced with huge debts from the pandemic, soaring energy bills, rising prices, empty shelves and growing shortages. Analysis based on the Office for National Statistics business survey suggests that over 300,000 new businesses, employing some 800,000 people, are at risk of closure in the next few months, yet the Government’s response has been to hit businesses with a new jobs tax as well as weakening their industrial strategy, and to take little more than piecemeal steps to resolve a supply chain crisis made worse by inaction and the lack of forward planning.

This crisis has hit British businesses and families harder than those in other countries. Almost 50 high street shops per day closed in the first six months of this year. Without further targeted action the face of our high streets and communities will be changed beyond recognition. Although today’s changes to business rates are welcome and a step in the right direction, as the Chancellor knows these reforms are in part a response to the stand Labour has taken.

The current business rate system in England is not fit for purpose. It punishes investment and entrepreneurship and hits the high street. Some of the incremental changes announced today, adopting calls for change from the British Retail Consortium, the CBI and others, are the steps that we need to incentivise rather than disincentivise investment, but there is no proper plan for sustained reform and rebuilding our high streets and economy. UK Hospitality has previously said that the biggest cost danger in sight for the sector was the reintroduction of business rates from 2022.

Today’s moves are welcome but also highlight why Labour called on the Government to freeze the business rates multiplier and extend the threshold for small business rates relief. This can be paid for by increasing the sales tax, levelling the playing field between online and bricks and mortar businesses, but this is an area where the Government have inexplicably been dragging their feet. Why, on page 144 of the Red Book, do they say they will

“continue to explore the arguments for and against a UK-wide OST”

and “publish a consultation shortly”? This has been going on for a long time; this is not a new issue. The inequity between online and bricks and mortar businesses is impacting on the prosperity of those on the frontline in our communities, who have served our communities and who have served our country through the pandemic. They are being penalised for being in our communities rather than moving their services online. Reducing the cost burdens so many of our businesses face is essential if they are to survive and grow that necessary employment for the future.

If this Government were genuinely supporting entrepreneurship, I would have liked to see more about that in the Budget, and it would be helpful for the Government to be clear about whether they are still targeting the new enterprise allowance for cuts. Latest statistics show that since its launch in 2011, 268,000 start-ups have been initiated by 249,000 individuals. Those businesses reportedly range from plastering, gardening and removal services to website design, film making and architecture enterprises; they are businesses that are at the heart of our communities and that go on to employ others. This scheme has been supported by the Prince’s Trust and others that do amazing and important work in supporting enterprise and entrepreneurial skills for young people. This is the kind of culture and opportunity we should be looking to enhance; it should be integral, not an add-on. In the work we have been doing in Hounslow, I have consistently been surprised—positively and pleasantly surprised—by how many young people want the skills and opportunities to start their own businesses, and how many people who may lose their jobs want support to do something different and to achieve a dream or grow a passion. Yet we seem to make it harder, not easier.

I grew up in a small business in our community in Hounslow. I have been self-employed. I have an MBA. I have worked in the private sector and the public sector. I know what innovation and entrepreneurship is. I know what it takes; I know the sacrifices that those who are self-employed—those who start up and bear the risk —make. I know what they do.

In the last year, I have co-chaired the development of the west London innovation district, looking to use innovation and create opportunities for research and investment to enable our local aviation hub to become a worldwide Silicon Valley for aviation, working with all parts of our national and international aviation supply chains to take advantage of opportunities in technology and to drive jet zero outcomes. We are working with West London Business and our research institutions— Brunel University, Imperial College and others—because we recognise that a place-based response to innovation is what drives sustainable growth. Part of that is bringing entrepreneurship and entrepreneurs into the overall growth programme and having an integrated strategy that helps to deliver that.

I want the UK to be the best place to start and grow a business. We should be improving and upgrading measures such as the new enterprise allowance, as opposed to pulling the rug out from under the feet of new community-based entrepreneurs—not just those in the City but those in the heart of our communities, who deserve opportunities at grassroots level.

With a week to go until COP26, the Government have also failed to match their climate change rhetoric with action, as shown by the Climate Change Committee predictions that the Government are on course to miss future carbon budgets. A recent British Chambers of Commerce survey found that just 11% of small and medium-sized enterprises are aware of how to measure their carbon footprint.

How much of the increased R&D investment, which is so critical to supporting innovative businesses at the cutting edge of the new economy, is going to support small businesses on their transition to net zero, and how is that going to be enabled? How are these announcements going to be delivered and translated to outcomes on the ground that make a difference in the recovery of local communities such as Hounslow—being an aviation community, we were hit very hard by the covid slowdown—with tremendous green growth ambitions?

I cannot see in this Budget the step change in vocational and technical skills that we need, or the less bureaucratic apprenticeship system. I am sure that hon. Members across the House will have seen this in their constituencies, but in north-west London, for example, millions in apprenticeship levy money has gone unspent. It is a scandal that that has been carrying on for years. The Government have been told about it, but we need structural reform to the apprenticeship levy to make it easier to create opportunities for skills to be grown for the future. We need businesses to be able to find the skilled workers that they need, and we need our local communities to have access to those opportunities so that they are equipped for the jobs of the future.

I, too, want an optimistic Budget—we all want an optimistic view for our country—but why did today’s Budget not make a clear, unequivocal commitment, with clear messages about our direction, such as Labour’s call to invest £28 billion every year until 2030 to tackle the climate crisis so that we can protect the planet and secure jobs in the UK? Businesses want to be certain about our vision and direction. They want a clear view of where they should invest. They want to know that if they make an investment today, they will get a return on it in five years’ time, and that there will not be another sudden change of strategy. The Chancellor has been talking to businesses; he will have heard the same message that I have.

Let me mention a few other areas of concern before I close. As co-chair of the all-party parliamentary group on mortgage prisoners, I find it disappointing that there is nothing in the Budget to help the 250,000 mortgage prisoners trapped paying high interest rates. The Government sold many of them off to mortgage loan sharks, which are charging them hundreds of thousands of pounds extra a year. That is more than seven months after the Chancellor promised Martin Lewis that the Government were looking for workable solutions. Markets are now expecting rises in interest rates, which will have a devastating impact on the finances of mortgage prisoners. The Government need to make sure that all mortgage prisoners can access reasonable fixed rates, so they get a fair deal and are protected against interest rates rises.

On building safety and cladding, I want to make just a brief mention of the challenges leaseholders are facing in blocks below 18 metres. I am not the only MP who is hearing about this from their constituents and the anxiety it is causing families week after week, day after day, with the uncertainty of how the safety measures and remediations will be funded. There needed to be more on that in the Budget and the Government need to tackle the issue urgently.

On children and youth facilities, I must say that I take issue with the portrait of Sure Start centres painted by right hon. Member for South Northamptonshire (Dame Andrea Leadsom). Her experience was not the same as mine. Our Sure Start centres did exactly what she described: they were family hubs, they gave advice and they supported early education. They supported language and literacy for those who were one or two years old. They supported new parents and they brought families together. I pay tribute to Noveen Phillips and others who ran the Bedfont Sure Start centre, which was forced to close as funding ran out. Those cuts affected over 500 Sure Start centres across the country, with children paying the price. On youth services—

[Mr Deputy Speaker (Mr Nigel Evans)]

Order. We were suggesting eight minutes; the hon. Lady has now taken 16 minutes.

[Seema Malhotra]

On youth services, No Shame in Running, Project TurnOver and other Hounslow youth services have seen cuts. They are doing an excellent job of trying to support young people.

In conclusion, the Budget should have had a longer-term and better plan for the short-term cost pressures facing businesses and families. We need a more resilient economy and public services. I will be honest: I expected more today. We needed more today. I hope that, in the interests of our country, the Chancellor will take heed of the comments from Members across the House this week.

Working People’s Finances: Government Policy

Nigel Evans Excerpts

Tuesday 21st September 2021 Commons Chamber

[Stephen Kinnock]

I would very much like to give way to my hon. Friend again, but Mr Deputy Speaker is looking at me in a way that tells me that perhaps it is time to finish my speech.

[Mr Deputy Speaker (Mr Nigel Evans)]

Alex Cunningham, who has not made a speech, has spoken for longer than Wendy Chamberlain.

[Stephen Kinnock]

I will give way to my hon. Friend one more time, if that is all right.

Health and Social Care Levy Bill

Nigel Evans Excerpts

2nd reading
Tuesday 14th September 2021 Commons Chamber

[Duncan Baker]

I am sure the hon. Gentleman will remember the old adage that what goes up must come down, and, obviously, it could happen vice versa as well.

This Government have been incredibly financially prudent over the years. Most constituents around the country would say, “Thank goodness that we have had a Conservative Government looking after this country as they have produced one of the best responses to the pandemic in the entire world.”

What constituents want to see now are the tangible changes on the ground and the benefits. What we see today is probably one of the greatest welfare benefits that we have—the fact that there is a cap on how much a person pays in their later life for their care costs and that they will not have to sell their home will create security for a great number of people.

As the White Paper comes forward, I want to say three things to the Treasury and get these points on the record. First, I am a patron for the Holt Youth Project, which is a marvellous young people’s charity in my constituency. It has looked after some 50 young carers throughout the pandemic. Everybody knows that the life chances of young people are significantly affected as a result of looking after a sick or debilitated parent. I want to ensure that we can channel the funding that we get from this levy; there have been many asks today, including for dementia and other incredibly important causes, but please let us ensure that we fund young carers properly.

Secondly, let us ensure that unpaid carers are properly looked after. For those who take the burden off the state to care for their loved ones, the current allowance is £67 a week, at a cost to the Treasury of £3 billion a year. This must be looked at again.

Finally, let me address the recurring problem that we hear about all the time: the shortage of care workers. These people need to have the same high status and high regard as any NHS worker. We have to tackle and get to grips with the skills required to care for somebody with dementia or to give end of life care, and ensure that those care workers are properly rewarded.

[Mr Deputy Speaker (Mr Nigel Evans)]

To resume her seat no later than 4.45 pm—we will put the timer on—I call Nickie Aiken.

Health and Social Care Levy Bill

Nigel Evans Excerpts

Committee stage & 3rd reading
Tuesday 14th September 2021 Commons Chamber

[Mr Nigel Evans in the Chair]

[The Second Deputy Chairman of Ways and Means (Mr Nigel Evans)]

I should explain that although the Chair of the Committee would normally sit in the Clerk’s chair during a Committee stage, I will remain here in the Speaker’s chair while we still have screens around the table, although I will be carrying out the role not of Deputy Speaker, but as Chairman of the Committee. I should therefore be referred to as the Chair of the Committee rather than as the Deputy Speaker.

Clause 1

Health and social care levy

Question proposed, That the clause stand part of the Bill.

[The Second Deputy Chairman]

With this it will be convenient to discuss the following:

Amendment 8, in clause 2, page 2, line 21, at end insert—

“(1A) HMRC shall publish a forecast of the estimated costs of collecting the health and social care levy for the tax year 2023-24 by 31 March 2022.”

This amendment would require the Government to publish in advance of the levy coming into force its assessment of the extra costs of collecting the levy.

Amendment 7, page 2, line 23, after “cost” insert

“in current or future years”.

Amendment 1, page 2, line 28, leave out from first “as” to end of line 30 and insert

“determined by joint agreement between the Treasury and the devolved administrations of Wales, Scotland and Northern Ireland.”

This amendment would require agreement between the Treasury and the devolved administrations of Wales, Scotland and Northern Ireland as to the shares of the proceeds of the levy that are allocated between health and social care and between England, Wales, Scotland and Northern Ireland.

Amendment 4, page 2, line 29, leave out from “as” to end of line 30 and insert

“determined jointly by the Treasury and the devolved governments of Scotland, Wales and Northern Ireland.”

The amendment would require joint agreement between the Treasury and the governments of Scotland, Wales and Northern Ireland as to how the levy proceeds are to be shared between the four areas and between health care and social care.

Clauses 2 to 7 stand part.

New clause 1—Equality impact analysis—

“(1) The Chancellor of the Exchequer must review the equality impact of this Act and lay a report of that review before the House of Commons within six months of the passing of this Act.

(2) A review under this section must consider the impact of the Act on—

(a) households at different levels of income,

(b) households at different levels of wealth,

(c) equality between different ages, and

(d) impact between the nations of the UK and regions of England.

(3) In this section ‘regions of England’ has the same meaning as that used by the Office for National Statistics.”

This new clause seeks an equality impact assessment of the Bill covering households at different levels of income and wealth; equality between different ages; and the impact between the nations of the UK and regions of England.

New clause 2—Review of economic impact of Act—

“(1) The Chancellor of the Exchequer must review the economic impact in parts of the United Kingdom and regions of England of the changes made by this Act and lay a report of that review before the House of Commons within six months of the passing of this Act.

(2) A review under this section must consider the effects of the provisions of the Act on—

(a) business investment,

(b) employment,

(c) productivity,

(d) GDP growth, and

(e) poverty.

(3) In this section ‘parts of the United Kingdom’ means—

(a) England,

(b) Scotland,

(c) Wales, and

(d) Northern Ireland

and ‘regions of England’ has the same meaning as that used by the Office for National Statistics.”

This new clause seeks an economic assessment of the Bill on investment, employment, productivity, growth and poverty in the devolved nations and English regions.

New clause 3—Review of revenue effects of Act—

“(1) The Chancellor of the Exchequer must review the revenue effects of this Act and lay a report before the House of Commons within six months of the passing of this Act and every 12 months thereafter.

(2) Any review under this section must include an assessment of—

(a) the impact of this Act on revenue derived from—

(i) employment, and

(ii) self-employment; and

(b) the impact of the revenues under this Act from employment and self-employment on the revenues derived from taxation on—

(i) dividends,

(ii) rental income, and

(iii) other forms of personal income.”

This new clause would require the Chancellor to report to the House on the impact of the Act on tax revenue derived from different sources of income.

New clause 4—Review of impact of Act on business—

“(1) The Chancellor of the Exchequer must review the impact of this Act on business and lay a report before the House of Commons within six months of the passing of this Act and every 12 months thereafter.

(2) Any review under this section must provide a separate analysis of the impact of the Act on the operating costs and profits of—

(a) small and medium sized enterprises,

(b) large enterprises solely based in the UK, and

(c) large multinational enterprises.”

This new clause would require the Chancellor to report to the House on the impact of the Act on the operating costs and profits of different sizes of business enterprises.

New clause 5—Review of equality impact of Act—

“(1) The Chancellor of the Exchequer must review the equality impact of this Act and lay a report before the House of Commons within six months of the passing of this Act and every 12 months thereafter.

(2) A review under this section must provide a separate analysis of the equality impact of this Act on—

(a) income inequality,

(b) wealth inequality,

(c) geographical inequality,

(d) inequality between people with protected characteristics (within the meaning of the Equality Act 2010), and

(e) socio-economic status.”

This new clause would require the Chancellor to report to the House on the equality impact of the Act.

New clause 6—Report on levy expenditure shares—

“The Chancellor of the Exchequer must report to the House of Commons at the end of each financial year the share of the levy spent on—

(a) health care, and

(b) social care.”

This new clause would require the Chancellor to report annually to the House on the share of the levy spent on health care and on social care.

New clause 7—Report on levy revenue derived from those in the social care sector—

“The Chancellor of the Exchequer must lay a report before the House of Commons within six months of the passing of this Act, and every 12 months thereafter, containing an assessment of the levy revenue derived from those working in the social care sector.”

This new clause would require the Chancellor to report to the House on levy revenue derived from those working in the social care sector.

New clause 10—OTS Assessment of levy and National Insurance increase—

“(1) The Office for Tax Simplification shall publish by 30 September 2022 a report assessing the advantages and disadvantages of introducing the health and social care levy in comparison to the increase in National Insurance.

(2) The report shall include an assessment of the costs of HMRC in collecting the levy and for employers in complying with their obligations in relation to the levy.”

This new clause would require the OTS to publish by September 2022 its assessment of the merits of the levy in comparison with the increase in National Insurance, including costs of compliance with and collection of the levy.

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[Dr Murrison]

rose—

[The Second Deputy Chairman]

Order. Just before Dr Murrison makes a further intervention, can I ask the Minister please to face the microphone? Otherwise, Members will not be able to hear his responses; I have found it difficult to hear him.

[Jesse Norman]

I do apologise, Mr Evans.

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[Mr Deputy Speaker (Mr Nigel Evans)]

I would just like an indication of who will want to make independent speeches by bobbing—thank you.

[James Murray]

As we turn to the Bill’s Committee stage, I will address the new clauses tabled in my name and the name of my hon. Friend the Member for Erith and Thamesmead (Abena Oppong-Asare).

We know that social care desperately needs more funding and the Government claim that their Bill today will help to raise some of that money, but the truth is that there is nothing in this Bill that will guarantee a penny going towards social care. I will return to that point when I address new clause 6, but first I want to look at the core measure that this Bill introduces—the unfair tax rise on working people and their jobs. Our new clause 3 would require the Government to report to the House of Commons on the impact that the Bill will have on tax revenue derived from different sources of income. On the one hand, there is income from employment and self-employment, which the Government have chosen to tax hard. On the other hand, as new clause 3 mentions, there is income from dividends, rental properties and other sources of wealth, which the Government have left untouched. We know that the Government have chosen not to raise taxes for those with large portfolios of stocks and shares, and for landlords renting out multiple properties, but the Bill even lacks any mention of taxes on dividends, despite the Prime Minister saying that they would be taxed more. Perhaps when the Financial Secretary to the Treasury responds, he could explain why the Government have chosen to delay implementing a tax rise in dividends until the next Finance Bill or beyond. Will he give us his word that the increase in tax on dividends will definitely go ahead?

Health and Social Care Levy

Nigel Evans Excerpts

1st reading
Wednesday 8th September 2021 Commons Chamber

[Mr Deputy Speaker (Mr Nigel Evans)]

I inform the House that Mr Speaker has selected amendment (c) in the name of the official Opposition. I remind the House that, under the terms of the business of the House order of today, the amendment will be moved formally at the end of debate.

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[Rachel Reeves]

I will come on to that in a moment, but that sums it up. You went into the election with a set of promises, and now you are breaking them one by one.

[Mr Deputy Speaker (Mr Nigel Evans)]

Order—[Interruption.] Hon. Members should resume their seats. This is an emotionally charged debate—I fully appreciate that—but as Mr Speaker has pointed out, Members must not use the word “you” unless they are referring to the Chair. Please remember that.

[Rachel Reeves]

I will clarify: Conservative Members are breaking their promises one by one by one. The Government will claim that that is all down to the pandemic, but in March this year—a year into the pandemic—the Chancellor promised that national insurance would not go up. He said,

“this Government are not going to raise the rates of income tax, national insurance or VAT…Nobody’s take-home pay will be less than it is now”.—[Official Report, 3 March 2021; Vol. 690, c. 256.]

Another Tory promise up in flames. That was not before the pandemic; it was a year into it, and a matter of months later this bombshell on work to fund social care is a broken promise. It is unfair, and it is a tax on jobs.

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[Several hon. Members rose—]

[Mr Deputy Speaker (Mr Nigel Evans)]

Order. As Members can see from the Annunciator, there is a five-minute limit on all Back-Bench contributions. We will start with Mel Stride.

--- Later in debate ---

[Nadia Whittome (Nottingham East) (Lab)]

Yesterday, the Prime Minister said that universal social care would be too expensive. That is exactly what the Conservatives said about the NHS in 1945 when they voted against it 21 times. They have argued that since and they will do so again if given the chance, as we heard from the right hon. Member for Gainsborough (Sir Edward Leigh) who, just minutes ago, described the NHS as a “socialist construct”.

A universal need demands a universal and freely accessible solution. None of us knows with certainty what will happen in our lives. Through disability, illness and old age, many of us will come to rely on social care if we do not do so already. The care we receive should not be a lottery based on wealth and postcode. We should all have the security of knowing that there will be someone to look after us no matter what. The NHS is there for all of us if and when we need it from the cradle to the grave. It has long been time for the social care system to provide the same.

We need a national care service funded by progressive taxation, including a wealth tax. The Prime Minister’s plans could not be further from that. Even the free market Adam Smith Institute condemned them as “morally bankrupt”, saying that the Government was asking

“poorer workers to bail out millionaire property owners.”

That comes just weeks before the Chancellor will plunge hundreds of thousands of families into poverty with his universal credit cuts.

Mr Deputy Speaker, you would struggle to design a more unfair and economically illiterate social care policy if you tried. Less than £1 in every £6 of the money raised will go to social care in the first three years of the plan. It is a triple whammy that the Government are presenting us with today: nowhere near enough money; not ringfenced for social care; and low-paid workers are funding it.

Why is it that Amazon is paying only 7.5% of its income in tax while a graduate on a standard starting salary is expected to give up around 50%? Let us be clear what this is really about; it is about protecting the inheritances of the very wealthy. What is the Government’s excuse for raising taxes on struggling people and for breaking their manifesto pledge? It is covid-19. We have heard it again and again today. I have seen at first hand, as have my former colleagues in Nottingham, how social care was in crisis well before the pandemic, and this Government cannot use covid-19 as a cover for 11 years of Tory failings, and they cannot use it as an excuse to take money from those who have been on the frontline and not from the billionaires who have profited from the pandemic, increasing their wealth by more than a fifth.

When I use the word “plan”, I am being generous. This is not a plan. It does nothing to fix the system that is broken at its core. A constituent emailed me about her experience. She is a care worker in the community. Her wages have not increased for four years. She does not get any travel expenses, pension contributions or sick pay. She works extremely long hours to make ends meet and often earns less than the minimum wage once she factors in travel and expenses. At the same time, her mum is terminally ill and has been waiting for five weeks to get support. She wants to be with her mum in her final weeks, but she is doubtful that she will be able to afford to get time off. Sadly, disgracefully, her story is not unusual, because our social care system does not work for those who rely on it or for those who are employed in it.

Instead of grappling with these deep-rooted problems, this Government are yet again, as the right hon. Member for Hemel Hempstead (Sir Mike Penning) admitted, kicking the can down the road. Instead of giving our care workers the pay rise that they deserve—[Interruption.] Will Government Members be quiet while we talk about the service that care workers have given during the pandemic? They deserve a pay rise, but instead Members on the Government Benches will be voting tonight to make sure that care workers are paying so that their wealthy donors do not have to.

How much longer must my former colleagues in the care sector wait for change? How many more families will be consigned to poverty because their care worker mum brings home less than the minimum wage? How many more disabled and elderly people will be confined to their homes, unable to live the kind of life they want? Anything less than a national care service, funded by a tax on the wealthy, not low-paid—

[Mr Deputy Speaker (Mr Nigel Evans)]

Order. I call Bim Afolami.

--- Later in debate ---

[Several hon. Members rose—]

[Mr Deputy Speaker (Mr Nigel Evans)]

Order. Peter Grant is next, and then the time limit will be reduced to four minutes.

National Insurance Contributions Bill

Nigel Evans Excerpts

3rd reading
Monday 6th September 2021 Commons Chamber

[James Murray]

If the House would rather I did not address the issue of veterans’ employers’ relief, I am happy to move on, but it is an important one to address. I would welcome your guidance, Mr Deputy Speaker.

[Mr Deputy Speaker (Mr Nigel Evans)]

We are considering just the amendments before the House. You will have an opportunity to talk much more widely on the whole Bill when we come to Third Reading, which will follow immediately after the votes.

[James Murray]

Thank you for that clarification, Mr Deputy Speaker. In that case, let me decide where in my speech to pick up. Forgive me for the slight procedural difficulty—if it is okay, I shall reserve my right to speak later.

--- Later in debate ---

Finally, I turn to Government amendment 3. The policy intent here is that the veterans’ measure should apply to the whole United Kingdom. This amendment corrects a small drafting error by replacing reference to the Social Security Contributions and Benefits Act 1992 with a reference to that Act and the Social Security Contributions and Benefits (Northern Ireland) Act 1992, reflecting the original policy intent. I trust that Members will agree that this is a minor and technical amendment and should be included as part of the Bill.

[Mr Deputy Speaker (Mr Nigel Evans)]

Mr Thomson, do you intend to withdraw new clause 1?

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19:34

Division 59

Ayes: 15

Noes: 309

[Mr Deputy Speaker (Mr Nigel Evans)]

It is good to get the voting back to normal, isn’t it? [Hon. Members: “Hear, hear.”] We have missed it.

Clause 6

Zero-rate contributions for armed forces veterans

Amendment made: 3, page 4, line 25, leave out “the 1992 Act” and insert

“whichever of the 1992 Acts would otherwise apply”.—(Jesse Norman.)

This amendment corrects an error by replacing a reference to the Social Security Contributions and Benefits Act 1992 with a reference to that Act and the Social Security Contributions and Benefits (Northern Ireland) Act 1992.

Third Reading

Financial Conduct Authority and Blackmore Bond plc

Nigel Evans Excerpts

Wednesday 30th June 2021 Commons Chamber

Motion made, and Question proposed, That this House do now adjourn.—(David Rutley.)

[Mr Deputy Speaker (Mr Nigel Evans)]

This is when the Dispatch Box on the Government side will be sanitised. I ask the Minister not to touch it until it has been sanitised.

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[John Glen]

I thank my hon. Friend for his intervention. He speaks with some authority on these matters. There is a process that will continue, as he knows, through the scrutiny of that legislative vehicle. We do need to make sure that, overall, including through the Department for Digital, Culture, Media and Sport’s online advertising review, we come out at the right place in dealing with these significant challenges for consumers.

As well as introducing new legislation to protect savers, it is right that our regulator also closely examines its own operations, to ensure that it can protect consumers as effectively as possible. As a result, the Government welcome the FCA’s ongoing transformation programme, which is introducing reforms that will fundamentally change the way it works. The programme will help the regulator become more efficient and effective by, among other things, enhancing its use of technology in order to make interventions earlier, which clearly is desirable.

It is heartening to see that significant steps have already been taken. Those include important structural changes within the organisation, as well as the appointment of the FCA’s first chief data information and intelligence officer. I particularly welcome this focus on improving the FCA’s use of data and analytics, which will improve the efficiency and speed with which the regulator can act.

These are serious matters, and we have spoken about the number of our constituents who have been adversely affected. I regularly meet the FCA’s chief executive, Nikhil Rathi, to discuss the transformation programme and monitor progress. There can be no complacency. This is a complex area where financial services are evolving all the time, as are fraudulent activities. My hon. Friend the Member for Thirsk and Malton (Kevin Hollinrake) mentioned the innovation announced today by Google, which is a welcome step, but we will need to look at these matters and at the experience through different cases, such as the Blackmore Bond, in order to get this right.

I close by reiterating my deep sympathies to all those who have suffered as a result of the Blackmore scheme. As a Government, we recognise that financial services are constantly evolving and the regulatory system must, therefore, be ready to respond. As I have highlighted this evening, we are committed to a process of continuous improvement in all dimensions to ensure our regulations benefit both UK consumers and the wider economy.

[Mr Deputy Speaker (Mr Nigel Evans)]

The Speaker started the day with some wonderful warm words in tribute to Ian Davis on his retirement after long and dedicated service here in Parliament. On behalf of the Chairman of Ways and Means, the First Deputy Chairman and myself, I wish Ian well on his well-deserved retirement and thank him. Because of the skill he demonstrated on a daily basis in Parliament, he made the work we do from this Chair so much easier. We wish you well, Ian. Thank you for everything you have done.

Question put and agreed to.

0.7% Official Development Assistance Target

Nigel Evans Excerpts

Tuesday 8th June 2021 Commons Chamber

[Hilary Benn]

With respect to the hon. Gentleman, that is not the point. We made a promise. I presume he is as committed to keeping promises he makes as the rest of us here in this Chamber.

What of the human cost? We heard from the right hon. Member for Maidenhead (Mrs May) in her powerful speech about lives blighted, lives shortened and lives lost. Let me just take one example. How can it be right to cut aid for clean water by 80%? The arguments against doing that are so strong, such as the importance of clean water for hand-washing in a pandemic. There is the fact that the single most important thing we can do if we want to reduce infant mortality, apart from improving immediate postnatal care, is provide clean water, because every day babies and small children die because they drink dirty water. Clean water helps girls to go to school, the very thing that the Government say is a priority.

As International Development Secretary—the right hon. Member for Sutton Coldfield talked about his experience—I learned that there are moments when those of who have the privilege to do the job have our minds changed. We learn and we understand, and we realise why something is so important. In this example, I came across a well one day with a lot of people standing around it. I was told that the well was closed. I had never come across a closed well before, but it was explained that because demand for water in that part of the city was so high, after the first rush of buckets was drawn from it in the morning, the well had to be closed so that the water table had time to replenish to allow the well to be reopened.

One of the people waiting was a girl of about 13 or 14. The well was here and she was standing there—I can remember it to this day. She told me in a very quiet voice that it was her responsibility in her family to get the water every day, because until she did so, she could not go to school. Because the well was closed not just that day, but many days, she was often late for class. That is what this is about: a lack of plentiful, clean water, which all of us here take for granted, meant a lack of education for her and millions of other girls like her.

Are we really going to say that it is acceptable to cut our support for clean water? Is anyone actually going to argue that these cuts are popular with the British people? I fundamentally disagree; the British people are much more compassionate than that. It is not a competition between charity at home and aid abroad. We can, we should, we must do both.

[Mr Deputy Speaker (Mr Nigel Evans)]

With immediate effect, there is a time limit of four minutes.

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[Liam Byrne]

We were proud to set the ambition, and we set a critical path to doing it, because we knew precisely this—that development and deterrence are two sides of the same coin. They are essential to the defence of the realm.

The Prime Minister, when he presented the Integrated Review, boasted that we were about to send the new Queen Elizabeth carrier group on a worldwide tour. In how many of the 100 countries where we are cutting aid will that carrier group come into port? I bet that everywhere it does, we will find that our projection of power is as nothing compared with the power of a project to make poverty history.

Two thirds of the world’s poorest live in fragile, conflict- affected and violent states. It beggars belief that under the Government’s proposals, nations such as Libya and Iraq will no longer receive bilateral aid. There should be a simple rule of policy that we will not drop aid in places where we drop bombs, or where others drop bombs that they bought from us. Investing in places where we can alleviate poverty is one of the biggest investments we can make in safeguarding our security for the years to come.

My final point is simply this. The Chair of the International Development Committee, my hon. Friend the Member for Rotherham (Sarah Champion), helpfully set out the extraordinary range of cuts that are now being confronted. As chair of the Parliamentary Network on the World Bank and the International Monetary Fund, I asked the IMF this afternoon for an update on the sheer scale of investment that is needed to get the global community back on its feet. Low-income countries will now need $200 billion extra to step up their covid response, followed by $250 billion extra in accelerated investment as we try to move from the pandemic to the Paris agreement. We are now going to—

[Mr Deputy Speaker (Mr Nigel Evans)]

Order. Sorry, we have to leave it there.

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[Mr Virendra Sharma (Ealing, Southall) (Lab) [V]]

I hope to be brief.

Looking around the world, we see so many problems that need our help—[Inaudible.] It has been a discourtesy to this House and to millions of people up and down the country who voted in 2019 for 0.7%, that this Government tried to cut that without any discussion or debate. I was heartened by the Prime Minister dispatching ventilators and oxygen converters to India, but Nepal is still waiting. India leads the world in vaccine research and production, whereas Nepal has no facilities to produce vaccines. Millions of vulnerable people in Nepal need vaccines, especially second doses. Those are not coming, but we have 500 million doses for 70 million people.

I have visited amazing programmes and met people whose lives were changed and saved by British aid. No one who has seen that work would condone a cut. The cut is barbaric at this time . When I meet people abroad, and online now, I am nothing but proud of our record as a donor to good works, But that work on gender equality, clean water and sanitation, 12 good years of education, ending human trafficking and modern slavery—[Inaudible]. We cannot let this Government waste that work without a fight. We must end this debate and support the return of 0.7% as our commitment to the nation and to the world.

[Mr Deputy Speaker (Mr Nigel Evans)]

Thank you very much. Sorry about those communications problems, but we got the vast majority of it, Mr Sharma.

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[Florence Eshalomi (Vauxhall) (Lab/Co-op) [V]]

I thank the right hon. Member for Sutton Coldfield (Mr Mitchell) for his persistence in bringing this issue to the House today. I am deeply concerned by the UK stepping back from its responsibilities to the world’s poorest and abandoning its commitment by cutting aid, and so are many of my Vauxhall constituents who have contacted me.

Six years ago in 2015, we were the first G7 nation to enshrine in law our commitment to the UN’s target of 0.7% of gross national income on overseas aid. As we prepare to host the G7 summit at the end of this week, the UK is breaking its promise, while other G7 countries such as France and the USA are maintaining or increasing their aid commitments. This is not the global Britain we want the world to see. The aid budget should be used to tackle the global challenges facing us all: the pandemic, the climate crisis and rising poverty and inequality.

A few months ago on 8 March, we celebrated International Women’s Day, and men and women across the UK spoke out against violence against women and girls. We can choose to challenge and call out the inequality we know that so many women continue to face. I am sure that Members across the House would agree that one of the best ways to help address that inequality is to ensure that women and girls have access to vital education —not only at home here in the UK, but right across the world.

The UK’s ambitious targets of getting 40 million more girls into school and 20 million girls reading by the age of 10 by 2026 have been adopted by the G7. Indeed, the Prime Minister said a few weeks ago on 12 May:

“Supporting girls to get 12 years of quality education is one of the smartest investments we can make as the world recovers from Covid-19. Otherwise we risk creating a lost pandemic generation…I’m going to be working throughout the UK’s G7 presidency to ensure leaders invest in those girls and boost children’s life chances around the world.”

Reducing the aid budget is in direct contradiction to the rhetoric from the Prime Minister a few weeks ago and the reality faced by millions of people working across the world to support women or girls and many others across the aid sector. The cuts will have far-reaching consequences for some of the world’s most marginalised and vulnerable people. Projects such as the International Rescue Committee’s Girls’ Education Challenge—the UK’s key programme for supporting girls’ education in Africa and Asia—could now be at risk because of this cut. I am concerned by the UK’s sudden role—[Inaudible.]

[Mr Deputy Speaker (Mr Nigel Evans)]

I think we have just lost Florence. I am terribly sorry. [Interruption.] I think we will have to leave it there. I call Pauline Latham.

[Mrs Pauline Latham (Mid Derbyshire) (Con)]

Thank you for calling me, Mr Deputy Speaker, a little earlier than I anticipated.

I congratulate my right hon. Friend the Member for Sutton Coldfield (Mr Mitchell) on securing this debate—sad though it is that we have to have it—and thank Mr Speaker and the Deputy Speakers for allowing us to go ahead. The saddest part is that we will not be allowed a vote on the issue. We will not be able to decide democratically what this House wants to do. It has been decided for us.

I am very disappointed that the Minister is not in his place at the moment, because I wanted to paint a picture of the things that I have seen when travelling with the International Development Committee. I want everyone in the Chamber to imagine that their daughter has got married young, too young, and that there is now no contraception for that daughter, so she has a child early. However, we have not managed to help that future mother with nutrition, so when she has her baby—if she survives it—she will have a child who is stunted. That could be in any country that we help, because those are the poorest people in the world.

The child will never get the brain power it deserves, because it has been starved during the gestation period, but we are cutting the amount of money for nutrition, so he or she will never catch up—can never catch up, because once someone’s brain is stunted, it can never do so. None of us in this Chamber wants to see that happen, but that is the reality of it. The mother could die because there is no contraception, the child will not reach its potential because it is stunted, and the child might never have a job and so afford to send its own children to school. The cycle goes on and on.

The problem is that we will be partly responsible, because we are cutting our aid budget so much. I have seen some of the figures, and the hon. Member for Rotherham (Sarah Champion) listed a lot of the cuts, which seem totally random and not thought through—“Oh, we’ll just cut that!”, or, “Yes, we’ll do that!” I think that the problem with some of the Ministers who have made the decisions is that they have not been to see for themselves the devastation of the impact on those poor people, the poorest people in the world, whom we as a very rich nation by comparison should be helping.

I have spent 11 years in this place, sitting on the International Development Committee, so I have seen the good that our aid has done. It is not perfect; we do not always get everything right, but we get a hell of a lot right to help those poorest people. We have saved lives—but we will lose lives.

The Minister is not a callous man or a cold man, and I am sure that when he made his speech, it was not one that he wanted to give. I am sure that he will do what he is told and give the speech he has been given at the end of this debate, but I am disappointed. I hope—now he has returned to the Chamber—that he will read what I have said about what we are doing to the poorest people in the world. He should go back to the Treasury and to the Prime Minister to say, “We are wrong.” It is as simple as that. Let us change our policy and go back to 0.7%.

[Mr Deputy Speaker (Mr Nigel Evans)]

We are trying to get Florence Eshalomi back, to give her the last minute. We will see how that goes.

Finance Bill

Nigel Evans Excerpts

Report stage & 3rd reading
Monday 24th May 2021 Commons Chamber

[Mr Deputy Speaker (Mr Nigel Evans)]

With this it will be convenient to consider the following:

New clause 1—Equality impact analysis—

‘(1) The Chancellor of the Exchequer must review the equality impact of sections 87 to 89 and schedule 16 and 17 of this Act and lay a report of that review before the House of Commons within six months of the passing of this Act.

(2) A review under this section must consider the impact of those sections on—

(a) households at different levels of income,

(b) people with protected characteristics (within the meaning of the Equality Act 2010),

(c) the Treasury’s compliance with the public sector equality duty under section 149 of the Equality Act 2010, and

(d) equality in England, Northern Ireland and in different regions of England.

(3) A review under this section must provide a separate analysis in relation to each of the following matters—

(a) the temporary period for reduced rates on residential property,

(b) increased rates for non-resident transactions, and

(c) relief from higher rate charge for certain housing co-operatives etc.

(4) In this section “regions of England” has the same meaning as that used by the Office for National Statistics.’

This new clause requires the Chancellor of the Exchequer to carry out and publish a review of the effects of sections 87 to 89 and schedules 16 and 17 of the Bill on equality in relation to households with different levels of income, people with protected characteristics, the Treasury’s public sector equality duty and on a geographical basis.

New clause 24—Review of impact of 2% non-resident surcharge—

‘(1) The Chancellor of the Exchequer must review the impact of section 88 and schedule 16 of this Act on tax revenues, residential property prices, affordability of residential property, and the volume of property purchases by non-residents, and lay a report of that review before the House of Commons within six months of the passing of this Act and once a year thereafter.

(2) The review under this section must include an assessment of what those impacts would have been if the provisions in the Draft Registration of Overseas Entities Bill had been in force.’

This new clause would require the Government to report on the effect of the 2% stamp duty land tax non-resident surcharge on tax revenues, property prices and affordability, and the volume of property purchases by non-residents, and also to assess what the impacts would have been if the Draft Registration of Overseas Entities Bill were in force.

Government amendments 4 to 6.

Government new clauses 17 to 20.

New clause 3—Review into the effects of replacement of LIBOR—

‘(1) The Chancellor of the Exchequer must undertake a review within six months of the passing of this Act of the effects of sections 128 and 129.

(2) This review must consider—

(a) the implications for tax revenue,

(b) effects on financial stability, and

(c) effects on businesses that use LIBOR as a benchmark, including businesses offering supply chain finance.’

This new clause would require a review into the effects of the provisions of the Bill about replacing LIBOR.

New clause 4—Assessment of environmental impact of Act—

‘(1) The Chancellor of the Exchequer must review the effectiveness of the provisions of this Act in accordance with this section and lay a report of that review before the House of Commons within six months of the passing of this Act.

(2) A review under this section must assess the effects of the provisions on—

(a) the achievement of the Government’s targets to reduce carbon emissions, and

(b) the United Kingdom’s progress towards net-zero emissions.’

New clause 5—Equality impact analyses of provisions of this Act—

‘(1) The Chancellor of the Exchequer must review the equality impact of the provisions of this Act in accordance with this section and lay a report of that review before the House of Commons within six months of the passing of this Act.

(2) A review under this section must consider the impact of those provisions on—

(a) households at different levels of income,

(b) people with protected characteristics (within the meaning of the Equality Act 2010),

(c) the Government’s compliance with the public sector equality duty under section 149 of the Equality Act 2010, and

(d) equality in different parts of the United Kingdom and different regions of England.

(3) A review under this section must include a separate analysis of each section of the Act, and must also consider the cumulative impact of the Act as a whole.’

New clause 7—Analysis of effectiveness of provisions of this Act on tax avoidance and evasion—

(1) The Chancellor of the Exchequer must review the effectiveness of the provisions of this Act in accordance with this section and lay a report of that review before the House of Commons within six months of the passing of this Act.

(2) A review under this section must—

(a) assess the effects of the provisions in reducing levels of artificial tax avoidance,

(b) assess the effects of the provisions in combating tax evasion and money laundering, and

(c) estimate the role of the provisions of this Act in reducing the tax gap in each tax year from 2021 to 2024.’

New clause 8—Review of public health and poverty effects—

‘(1) The Chancellor of the Exchequer must review the public health and poverty effects of the provisions of this Act and lay a report of that review before the House of Commons within six months of the passing of this Act.

(2) A review under this section must consider—

(a) the effects of the provisions of this Act on the levels of relative and absolute poverty in the UK,

(b) the effects of the provisions of this Act on socioeconomic inequalities and on population groups with protected characteristics as defined by the 2010 Equality Act,

(c) the effects of the provisions of this Act on life expectancy and healthy life expectancy in the UK, and

(d) the implications for the public finances of the public health effects of the provisions of this Act.’

New clause 9—Review of changes to coronavirus support payments etc—

‘(1) The Chancellor of the Exchequer must review the impact on investment in parts of the United Kingdom and regions of England of the changes made to coronavirus support payments etc by this Act and lay a report of that review before the House of Commons within six months of the passing of this Act.

(2) A review under this section must consider the effects of the provisions on—

(a) business investment,

(b) employment,

(c) productivity,

(d) GDP growth, and

(e) poverty.

(3) A review under this section must consider the following scenarios—

(a) the coronavirus job retention scheme and the self-employment income support scheme are continued until 30th September 2021, and

(b) the coronavirus job retention scheme and self- employment income support scheme are continued until 31st December 2021.

(4) In this section—

“parts of the United Kingdom” means—

(a) England,

(b) Scotland,

(c) Wales, and

(d) Northern Ireland;

and “regions of England” has the same meaning as that used by the Office for National Statistics.’

This new clause would require a report comparing the effect of (a) the coronavirus job retention scheme and the self-employment income support scheme being continued until 30 September 2021 and (b) the coronavirus job retention scheme and self-employment income support scheme being continued until 31 December 2021 on various economic indicators.

New clause 10—Review of changes to VAT—

‘(1) The Chancellor of the Exchequer must review the impact on investment in parts of the United Kingdom and regions of England of the changes made to VAT by this Act and lay a report of that review before the House of Commons within six months of the passing of this Act.

(2) A review under this section must consider the effects of the provisions on—

(a) business investment,

(b) employment,

(c) productivity,

(d) GDP growth, and

(e) poverty.

(3) A review under this section must consider the following scenarios—

(a) the extension of temporary 5% reduced rate for hospitality and tourism sectors is continued until 30th September 2021, and

(b) the extension of temporary 5% reduced rate for hospitality and tourism sectors is continued until 31st December 2021.

(4) In this section—

“parts of the United Kingdom” means—

(a) England,

(b) Scotland,

(c) Wales, and

(d) Northern Ireland;

and “regions of England” has the same meaning as that used by the Office for National Statistics.’

This new clause would require a review comparing (a) the extension of temporary 5% reduced rate for hospitality and tourism sectors being continued until 30 September 2021 and (b) the extension of temporary 5% reduced rate for hospitality and tourism sectors being continued until 31 December on various economic indicators.

New clause 11—Review of effect on tax revenues—

‘(1) The Chancellor of the Exchequer must review the effects on tax revenues of the provisions of this Act, and lay a report of that review before the House of Commons within six months of the passing of this Act.

(2) A review under this section must—

(a) consider the expected change in corporation and income tax paid attributable to the provisions, and

(b) make an estimate of any change attributable to the provisions in the difference between the amount of tax required to be paid to the Commissioners and the amount paid.

(3) The reference to tax required to be paid in subsection 2(b) includes taxes payable by the owners and employees of Scottish limited partnerships.’

This new clause would require a report on the impact of the provisions of the Bill on narrowing the tax gap, assessing the impact of: (a) the expected change in corporation and income tax paid attributable to the provisions and (b) any change, attributable to the provisions, in the difference between the amount of tax required to be paid to the Commissioners and the amount paid. In particular, this includes taxes payable by the owners and employees of Scottish limited partnerships.

New clause 13—Review of impact on GDP—

‘(1) The Chancellor of the Exchequer must review the impact in parts of the United Kingdom and regions of England of the changes made by this Act and lay a report of that review before the House of Commons within six months of the passing of this Act.

(2) A review under this section must compare estimated GDP in each of the next five years under the following scenarios—

(a) these provisions are enacted,

(b) these provisions are not enacted, and

(c) the UK fiscal stimulus package, as a percentage of GDP, mirrors that of the United States.

(3) In this section—

“parts of the United Kingdom” means—

(a) England,

(b) Scotland,

(c) Wales, and

(d) Northern Ireland;

and “regions of England” has the same meaning as that used by the Office for National Statistics.’

This new clause would require a report on the impact on GDP of the provisions in the Bill, comparing them with the impact of copying the level of fiscal intervention in the US.

New clause 14—Report on Part 2—

‘(1) The Secretary of State shall, before 1 April 2023, publish a report on the impact of the provisions in Part 2 of this Act.

(2) The report in subsection (1) shall include consideration of the impact on—

(a) the rate of plastic recycling in the UK generally,

(b) the rate of PET plastic recycling in the UK,

(c) the rate of Polypropylene plastic recycling in the UK, and

(d) the rate of HDPE plastic recycling in the UK.

(3) The report in subsection (1) shall include consideration of the impact on—

(a) the volume of plastic used in the UK,

(b) the volume of PET plastic used in the UK,

(c) the volume of Polypropylene plastic used in the UK, and

(d) the volume of HDPE plastic used in the UK.

(4) The report in subsection (1) shall include consideration of the impact on—

(a) the volume of plastic stockpiling in the UK,

(b) the volume of PET plastic stockpiling in the UK,

(c) the volume of Polypropylene plastic stockpiling in the UK, and

(d) the volume of HDPE plastic stockpiling in the UK.

(5) The report in subsection (1) shall consider whether—

(a) £200/tonne provides an economic incentive to change the content of packaging for those types of plastic specified in subsection (2),

(b) the economic incentive in subsection (5)(a) remains in the event of lower than average oil prices, and

(c) a tax escalator might be more efficacious.’

This new clause would require a review of the efficacy of the proposed plastic packaging tax, with respect to whether the proposals will (a) increase use of certain plastics and (b) provide an incentive to recycle in the event of lower than average oil prices.

New clause 15—Review of impact on climate emissions—

‘(1) The Chancellor of the Exchequer must review the impact on climate emissions in parts of the United Kingdom and regions of England of the changes made by this Act and lay a report of that review before the House of Commons within six months of the passing of this Act.

(2) A review under this section must consider the effects of the provisions of the Act on progress towards the Government’s climate emissions targets.

(3) In this section—

“parts of the United Kingdom” means—

(a) England,

(b) Scotland,

(c) Wales, and

(d) Northern Ireland;

and “regions of England” has the same meaning as that used by the Office for National Statistics.’

This new clause would require a report on the effects of the Bill on progress towards the UK Government’s climate emissions targets.

New clause 16—Review of impact of section 104—

‘(1) The Chancellor of the Exchequer must review the impact on investment in parts of the United Kingdom and regions of England of the changes made by section 104 and lay a report of that review before the House of Commons within six months of the passing of this Act.

(2) A review under this section must consider the effects of the provisions on the volume of gambling, including—

(a) the number of people who take part in gambling,

(b) the amount of money spent on gambling, and

(c) the gross gaming yield.

(3) In this section—

“parts of the United Kingdom” means—

(a) England,

(b) Scotland,

(c) Wales, and

(d) Northern Ireland;

and “regions of England” has the same meaning as that used by the Office for National Statistics.’

This new clause would require a report on the effects of section 104 on the volume of gambling.

New clause 21—Impact of Act on human and ecological health and wellbeing—

‘The Chancellor of the Exchequer must review the impact of the provisions of this Act on human and ecological health and wellbeing, including the wellbeing of future generations, and lay a report of that review before both Houses of Parliament within six months of the passing of this Act.’

This new clause would require the Chancellor of the Exchequer to review the impact of the Finance Bill on human and ecological health and wellbeing, including the wellbeing of future generations.

New clause 26—Review of coronavirus job support schemes—

‘(1) The Chancellor of the Exchequer must lay before Parliament within three months of the passing of this Act a report on the impact of sections 31 to 33 of this Act.

(2) The report must consider the effects of the following two scenarios—

(a) the coronavirus job retention scheme and the self-employment income support scheme are continued until 30th September 2021, and

(b) the coronavirus job retention scheme and self- employment income support scheme are continued until 31st December 2021, and the following categories of workers are made eligible for the schemes—

(i) limited company directors,

(ii) self-employed workers earning more than 50% of their income from employment, and

(iii) self-employed workers with profits over £50,000.

(3) A review under this section must consider the effects of the provisions on—

(a) employment,

(b) GDP growth,

(c) personal debt, and

(d) poverty.’

New clause 27—Review of effect on small businesses—

‘(1) The Chancellor of the Exchequer must lay before Parliament within six months of the passing of this Act a review considering the effects of this Act on small businesses that have been subject to restrictions on trading as a result of the pandemic.

(2) The review must consider the following issues—

(a) debt,

(b) rent arrears,

(c) solvency, and

(d) the ability of small businesses to employ individuals.’

New clause 28—Review of effect on carbon emissions—

‘The Chancellor of the Exchequer must lay before Parliament within six months of the passing of this Act a review on the effect of the provisions of the Act on—

(a) a transition towards zero-carbon domestic flights by 2030,

(b) any reduction in the share of the UK’s carbon emissions coming from international flight travel, and

(c) the number of individuals booking more than three international flights a year.’

New clause 29—Review of effect on supply chain and other workers—

‘(1) The Chancellor of the Exchequer must lay before Parliament within six months of the passing of this Act a review considering the effects of the provisions of this Act on the following categories of—

(a) workers, employees and self-employed individuals in the supply chain sector,

(b) employees on zero-hours contracts and agency workers, and

(c) office workers in different income deciles that have worked remotely since March 2020.

(2) The review must include an assessment with regard to—

(a) employment income, and

(b) socioeconomic inequalities.’

New clause 31—Review of section 21—

‘(1) The Chancellor of the Exchequer must review the impact of section 21 of this Act and lay a report of that review before the House of Commons within six months of the passing of this Act.

(2) A review under this section must consider—

(a) the impact of section 21 on levels of tax avoidance,

(b) the impact of section 21 on levels of tax avoidance if section 61O of ITEPA 2003 were amended to prohibit the operation of umbrella companies, and

(c) the impact of section 21 on levels of tax avoidance if section 61O of ITEPA 2003 were amended to mean that an umbrella company would not be an intermediary but would still be able to operate, provided that the following conditions were met—

(i) the worker had no material interest in the umbrella company;

(ii) the umbrella company received the monies from the agency and used the entire amount to process as earnings, including the total cost of employment, less a transparent intermediary margin;

(iii) at the end of the engagement, any outstanding holiday pay was paid;

(iv) all employment rights, including agency workers’ rights, were maintained; and

(v) no payment was given to any other party.’

Amendment 23, page 2, line 15, leave out clause 5.

This amendment would ensure that the thresholds for the personal allowance and for the higher rate of income tax rise in line with inflation as per the Income Tax Act 2007.

Amendment 27, in clause 15, page 9, line 16, at end insert—

“(3) The Chancellor of the Exchequer must, no later than 5 April 2022, lay before the House of Commons a report—

(a) analysing the fiscal and economic effects of Government relief under the annual investment allowance scheme and the changes in those effects which it estimates will occur as a result of the provisions of this section, in respect of—

(i) each NUTS 1 statistical region of England and England as a whole,

(ii) Scotland,

(iii) Wales, and

(iv) Northern Ireland, and

(b) assessing how the annual investment allowance scheme is furthering efforts to mitigate climate change, and any differences in the benefit of this funding in respect of—

(i) each NUTS 1 statistical region of England and England as a whole,

(ii) Scotland,

(iii) Wales, and

(iv) Northern Ireland.”

This amendment would require the Chancellor of the Exchequer to analyse the impact of changes proposed in Clause 15 in terms of impact on the economy and geographical reach and to assess the impact of the investment allowance scheme on efforts to mitigate climate change.

Amendment 28, in clause 19, page 13, line 12, at end insert—

“(3) The Chancellor of the Exchequer must, no later than 5 April 2022, lay before the House of Commons a report—

(a) analysing the fiscal and economic effects of Government relief in relation to R&D tax credits for SMEs and the changes in those effects which it estimates will occur as a result of the provisions of this section and schedules 3 and 4, in respect of—

(i) each NUTS 1 statistical region of England and England as a whole,

(ii) Scotland,

(iii) Wales, and

(iv) Northern Ireland, and

(b) assessing how R&D tax credits for SMEs are furthering efforts to mitigate climate change, and any differences in the benefit of this funding in respect of—

(i) each NUTS 1 statistical region of England and England as a whole,

(ii) Scotland,

(iii) Wales, and

(iv) Northern Ireland.”

This amendment would require the Chancellor of the Exchequer to analyse the impact of changes proposed in Clause 19 in terms of impact on the economy and geographical reach and to assess the impact of R&D tax credits on efforts to mitigate climate change.

Amendment 32, in clause 21, page 13, line 33, after “(1B)” insert “or (1C)”.

Amendment 33, page 14, line 9, at end insert—

“(1C) This subsection is satisfied where—

(a) the worker has no material interest in the intermediary,

(b) the worker—

(i) has received,

(ii) has rights which entitle, or which in any circumstances would entitle, the worker to receive, or

(iii) expects to receive,

a chain payment from the intermediary.

(c) If any of the conditions A, B or C in this subsection apply, then this exempts the person within the chain from being an intermediary.

(d) Condition A is that the services are supplied by or through a third person (“the agency”) where all income received and receivable for those services wholly constitutes employment income subject to Chapter 7 of Part 2 of ITEPA 2003.

(e) Condition B is that the worker is employed under a contract of employment within the meaning of section 230(2) of the Employment Rights Act 1996 and is ordinarily or habitually employed by the intermediary prior to being engaged by the Client, either directly or via an agency, and has been engaged by the Client on a secondment basis.

(f) Condition C is that all of the following apply—

(i) the worker is employed by the intermediary under a contract of employment within the meaning of section 230(2) of the Employment Rights Act 1996,

(ii) the worker, if engaged via an agency, has not given notice of an agreement with the intermediary that paragraphs (1) to (8) of regulation 32(9) of the Conduct of Employment Agencies and Employment Businesses Regulations 2003 shall not apply,

(iii) all income received and receivable by the worker wholly constitutes employment income from the intermediary,

(iv) the total of the payment elements paid to the worker during the entire engagement are equal to or greater than the sums of chain payments made to the intermediary during the engagement,

(v) the intermediary is not in breach of Section 54 of the Pensions Act 2008, and

(vi) the intermediary is not in breach of Paragraph 3A of Schedule 1 of the Social Security Contributions and Benefits Act 1992.

(g) A “payment element” means any of the following—

(i) secondary Class 1 National Insurance Contributions, as defined by section 6 of the Contributions and Benefits Act,

(ii) apprenticeship Levy as defined by Part 6, section 98, of the Finance Act 2016,

(iii) pension contributions, which shall mean contributions paid into registered pension schemes by their employers that are subject to the exemption provided by Section 308 of ITEPA 2003,

(iv) intermediary margin, which shall mean a fixed fee deducted from the chain payment, the amount of which has been declared to the contractor prior to becoming an employee,

(v) holiday pay, which means any amounts paid to the worker under the Working Time Regulations 1998 either during or upon termination of the engagement,

(vi) net employment income, which shall mean employment income paid to the worker after deduction of Income Tax under PAYE, Class 1 primary National Insurance Contributions, and Student Loans deductions,

(vii) allowable expenses, which shall mean any reimbursement of expenses to the worker by the intermediary permitted as per Chapter 2 of Part 5 of ITEPA 2003.

(h) In (1C)(g) “secondment” shall mean the provision of any worker by means of a resource augmentation service or temporary transfer of an official or worker to another position or employment away from their primary job with the Intermediary.

(i) Where the fee-payer, defined in 61N(2), has been provided with information from the intermediary that gives them reasonable belief that any of the Conditions A to C are met, then section 61N(5) does not apply, and the client cannot become the fee-payer under 61NA subsections (3) and (4).

(j) The amendments made by this subsection (1C) have effect in relation to deemed direct payments treated as made on or after 6 April 2022.”

Amendment 34, page 14, line 9, at end insert—

“(1C) This subsection is satisfied where—

(a) the worker has no material interest in the intermediary,

(b) the worker—

(i) has received,

(ii) has rights which entitle, or which in any circumstances would entitle, the worker to receive, or

(iii) expects to receive,

a chain payment from the intermediary.

(c) If any of the conditions A, B or C in this subsection apply, then this exempts the person within the chain from being an intermediary.

(d) Condition A is that the services are supplied by or through a third person (“the agency”) where all income received and receivable for those services wholly constitutes employment income subject to Chapter 7 of Part 2 of ITEPA 2003.

(e) Condition B is that the worker is employed under a contract of employment within the meaning of section 230(2) of the Employment Rights Act 1996 and is ordinarily or habitually employed by the intermediary prior to being engaged by the Client, either directly or via an agency, and has been engaged by the Client on a secondment basis.

(f) In (1C)(e) “secondment” shall mean the provision of any worker by means of a resource augmentation service or temporary transfer of an official or worker to another position or employment away from their primary job with the Intermediary.

(g) Where the fee-payer, defined in 61N(2), has been provided with information from the intermediary that gives them reasonable belief that either of the Conditions A to B are met, then section 61N(5) does not apply, and the client cannot become the fee-payer under 61NA subsections (3) and (4).

(h) The amendments made by this subsection (1C) have effect in relation to deemed direct payments treated as made on or after 6 April 2022.”

Government new schedule 1.

Government amendment 3.

Government amendments 7 to 22.

[Abena Oppong-Asare]

I rise to speak to new clauses 2 and 24, tabled by the Leader of the Opposition, other hon. and right hon. Friends and myself.

New clause 2 draws attention to the announcement made by the Chancellor in 2019, when he was Chief Secretary to the Treasury, on implementing a non-resident stamp duty surcharge at 3%. As hon. Members will have noted, the Finance Bill introduces a non-resident surcharge at 2% rather than 3%. In Committee, I asked the Minister why the Government had watered down that commitment; I do not believe I have received an answer. We believe that this means that the Government will lose out on about £52 million a year in revenue, which they said they would have spent on tackling homelessness and rough sleeping. Perhaps the Minister could use his closing speech to clear up any confusion. Why have the Government moved from a 3% to 2% non-resident surcharge, and what assessment has been made of the impact on tax revenues and the housing market?

I turn to new clause 24. In Committee of the whole House, my hon. Friend the Member for Ealing North (James Murray) asked the Financial Secretary to the Treasury to explain whether the Government will meet their own deadline of introducing legislation to set up a register of overseas entities by 2021. The Minister’s response was that

“the Government plan to introduce the Bill in due course.”—[Official Report, 20 April 2021; Vol. 692, c. 914.]

Since that debate in Committee of the whole House, we have had the Queen’s Speech—the Government’s opportunity to lay out their legislative plans for the year ahead. I listened carefully to that speech and read the accompanying notes, but I heard no mention of the registration of overseas entities Bill.

It is now more than five years since David Cameron first announced proposals to introduce a beneficial ownership register for UK property owned by overseas companies and legal entities. Since then, we have had more announcements, consultations and draft Bills, but still no indication from the Government of when they intend to introduce this vital piece of legislation. The failure to include it in this year’s Queen’s Speech means that it is now beyond doubt that the Government will miss their 2021 deadline.

It is worth considering what that means more broadly. First, let us look at the scale of the problem. In 2014, the National Crime Agency received around 14,000 reports of transactions that were believed to involve illicit activity. By 2020, that had risen to over 62,000 reports. Of course, the true scale of the problem is extremely hard to quantify, given the lengths that individuals and organisations go to hide their illegal activities.

In 2019, Transparency International UK said:

“The London property market is highly vulnerable to corrupt wealth flowing into it.”

Its analysis found that since 2008, £100 billion of properties have been bought in London alone by overseas companies in secrecy jurisdictions and high-risk corruption countries—both indicators for illicit wealth. In 2017, it identified that 160 properties worth over £4 billion were purchased by high-corruption risk individuals. The tidal wave of dirty money is poisoning the housing market for ordinary people. There is growing evidence that the purchase of UK property to launder illicit finance from abroad has a direct impact on housing prices. As Transparency International UK—among others—has shown, attempts to clamp down on corruption around the world have led to a rise in property prices here as illicit finance flows into the UK market to avoid detection in its home country.

This is not just about luxury properties. There is a ripple effect, where activity at the top causes a rise in prices throughout the market. As demand outstrips supply in high-value areas, buyers look out to more affordable places. This leads to a cycle of rising housing prices—my hon. Friends know this story very well. Illicit finance also distorts the supply of housing as developers increasingly focus on luxury property targeted at international investors, who have no intention of living in the properties. So dirty money, from crime and corruption abroad, is pricing people out of their local communities in cities across the country.

This has a direct effect on the housing crisis. The Government know this, of course. They have committed to act and set up a register of beneficial ownership for UK property owned by overseas entities. This would let the disinfectant of sunlight into the murky world of high-end property bought by shell companies and overseas bodies. As the Government stated:

“It is intended to act as a deterrent to those who would seek to hide and launder the proceeds of bribery, corruption and organised crime in land in the UK.”

The fact the Government are aware of the problem but are still failing to act is inexplicable.

Our new clause 24 requires the Government to review how the Registration of Overseas Entities Bill could work alongside the non-resident surcharge to mitigate the housing crisis. But what we really need is for the Government to introduce this Bill as soon as possible and begin the process of implementing this important legislation. I will end by paying tribute to the Members from across the House who have campaigned on this issue relentlessly. I know they will share our disappointment that the Government are still not taking the action that we all agree is needed. I urge the Government to correct this wrong and get on with doing what they have committed to do.