Tax Fairness

Debate between Nigel Evans and Sheila Gilmore

Tuesday 12th March 2013 Commons Chamber

[Sheila Gilmore]

I have great sympathy for people who are overcrowded and for those on the housing waiting list. The majority of people waiting for housing in my city are looking for small houses, so that could also cause certain problems.

Fundamentally, however, this is not a housing issue. If we want to make the issue about housing, we should deal with it as a housing issue and look at ways of encouraging and facilitating moves for people who want them. That is not necessarily happening. People have asked me, “Well, if I did move who would help me pay for this move? Who will reimburse me for the fact that I put my own kitchen into this house? My landlord did not quite get around to it, so when I was working a few years ago I put in that new kitchen. Is somebody now going to reimburse me for that? Are they going to help me with the cost of moving my things? Are they going to help me with the cost of setting up in a new place? I don’t think so.” If a local authority—some do—decided that it wanted to encourage people to move once they had outgrown their homes, it could do so. It might have a cost, but it would have a benefit.

If every single person suffering from the bedroom tax was able to move—

[Mr Deputy Speaker (Mr Nigel Evans)]

Order. Is this a bedroom tax on mansions? This is an Opposition day motion. I think the hon. Lady is actually holding it in her hands. Has she read it, and, if she has, could she perhaps stick to it?

[Sheila Gilmore]

The point I was going to make in relation to the matter that was, after all, raised in an intervention is that if everybody moved successfully and reshuffled, there would be no saving, and that is odd because a saving is wanted. It is in that context that people are saying, “What sort of fairness is it that imposes such a great burden of trying to effect economic recovery on those who are least well off? Could we look at other measures to show that we really are all in this together?” That is where the mansion tax comes in.

The mansion tax enables us, in part, to really feel—as a community and as a country—that people are bearing a fair share of the burden. We have heard a lot about tax avoidance and tax evasion. It worries me greatly that the justification given for removing the 50p rate of tax is that people are not paying it. Instead of looking at why people are not paying it, and whether anything could be done to ensure that it was paid, we again hear, “Actually, we’ll just take it away because they aren’t paying it.” That is not a good message to put out.

We have also had reference—in relation to the mansion tax, Mr Deputy Speaker—to not wanting to have such a competitive tax regime that we risk people fleeing our shores. Reference was made to the PricewaterhouseCoopers report about competitive tax rates. There is an interesting coda to that report from some of those who were surveyed. The question then becomes: will the increased competitiveness lead to increased investment in this country, because that is what is really important? Many of the tax people thought it was crucial to turn improved tax relief on capital expenditure into investment in this country, and that it should be the No. 1 priority for the UK. In 2010, the Chancellor abolished capital allowances for investment in his first year in office. Perhaps he would like to look at the whole report, and not just the parts that suit him.

An argument has been made—as it always is with regard to rates and council tax—about people who are asset-rich and income-poor. It is usually raised as a reason for not putting up council tax banding, for example. In the old days, it was used as a reason for not making changes to the rating system. Yes, we can all come up with examples of people who are in that position. Usually, the example is a widow who cannot afford to pay. However, we cannot design our entire system of taxation around that, and there are ways it can be mitigated, as there are with council tax. If someone is genuinely as income poor as has been suggested, they would—at least until the Government decided to change the rules on council tax benefit—have been eligible for assistance with their council tax. There are always ways to help such people.

Earlier, I made what to some people might have seemed an unfair comparison. We were being asked to think about the widow who might struggle with a mansion tax. The 60-year-old widow I referred to is being asked to pay £13 per week out of an income of £71 a week, and the answer is that she should take in a lodger. If we want to be fair to both groups, we have to treat them with equal compassion.

Public Sector Pensions

Debate between Nigel Evans and Sheila Gilmore

Thursday 8th December 2011 Commons Chamber

[Sheila Gilmore]

I suspect that in the fantasy world of the debate on independence, as it tends to be, SNP Members would indeed say that that is the answer, but they have to know how they would fund that and about issues to do with tax and making people as well off as possible.

During the SNP Member’s brief appearance in Tuesday’s debate on the economy, he kept talking about the Scandinavian economies. Of course, in the Scandinavian economies there is a very different view of taxation. It is disingenuous of the SNP to want to pose as a low-tax party and tell people that they can have wonderful public services and, at the same time, council tax freezes—which, by the way, are very regressive because they most benefit the people who are best off. The SNP has to decide where it wants to be. It deliberately put such a sentiment in the motion because it wants to be able to say that Labour Members will not support it.

We are in support of public sector workers. We do not think that what the Government are doing is right. We feel, very strongly, that we have to stop what this Government are doing, which is constantly to pit one group of workers against others. They are setting public against private, setting people in work against people who are out of work, and stirring up what I heard described on two occasions on Radio 4 at the weekend as an atmosphere of anger and bitterness. In the discussions on phone-in programmes about what is happening, all the clips were of people shouting at each other, saying, “Why should I, as a private sector worker, pay for your pension?” No commentator said, “Where is that anger being generated from?”, but it is being deliberately stirred up by this Government—

[Mr Deputy Speaker (Mr Nigel Evans)]

Order. I am sorry, but we have to start the wind-ups now.

Women (Government Policies)

Debate between Nigel Evans and Sheila Gilmore

Wednesday 8th June 2011 Commons Chamber

[Sheila Gilmore (Edinburgh East) (Lab)]

Some newspapers have an item where they talk about the word of the day or word of the week. For the Government Whips Office, the word is presumably “bandwagon”, because expressing opposition is suddenly seen to be jumping on one. I do not think that the Government have necessarily gone about a deliberate policy of targeting women, because I do not believe in conspiracy theories, but some of their policies, when added together, are having precisely that effect. Perhaps people have not realised or noticed.

I want to take a slightly different tack. I will be very brief in the hope that I get other opportunities to amplify these issues, because they are important. What happens to women, in particular, when they separate from a partner in coming out of a relationship? There is a lot of research that says that women in that situation end up worse off anyway, but some things that are happening will exacerbate it. For example, legal aid is going to be taken away from family cases. In my experience as a family lawyer, it is not going to court and getting embroiled in some dramatic procedure, but good, solid legal advice that will get people the kind of financial settlement that enables them to get back on their feet more quickly. If that is not available, they will be financially worse off.

In addition, there are changes to child support that will require people to go through an obstacle race to get it. I urge the Government to remember why the child support system was introduced in the first place—precisely because people were not getting that form of support.

As well as not getting a good financial settlement and not getting easy access to child support, what else is going to go wrong? The big thing that people need when they are separating is housing, because two into one will not go, so what is happening on the housing front? People in the private rented sector who need housing benefit will get less of it. We are not even sure how mortgage costs will be covered under universal credit. The homelessness rules are changing so that more people will end up in the private rented sector. That costs more money, so it is not actually a cost-saving measure. It will also not give people the long-term security that they want. Women who separate from their partners will therefore find themselves in a more difficult position in terms of housing.

Finally, I turn to benefits. Women will have to re-enter the work force at a younger age because the age at which the youngest child will affect their benefit is being reduced to five. There are also changes to tax credits and to the amount of money to cover child care.

If one thinks about the journey that a woman makes from separating from her partner to re-establishing herself in her new life, I contend that the effect of those Government policies will make her much worse off. I am sorry that I do not have time to amplify those points, because I certainly could. I look forward to having another opportunity to do so.

[Mr Deputy Speaker (Mr Nigel Evans)]

I call Mary Macleod, to sit down at five minutes to 4.