Finance Bill

Debate between Nigel Huddleston and Andy Carter

2nd reading
Wednesday 13th December 2023 Commons Chamber

[The Financial Secretary to the Treasury (Nigel Huddleston)]

I beg to move, That the Bill be now read a Second time.

Before I start the debate, I should declare, to avoid any potential conflict or perception of conflict, that, with reference to my previously published entry in the Register of Members’ Financial Interests and my ministerial interests, I have recused myself from making ministerial decisions on issues relating to pillar two, which will be dealt with more than ably by the Exchequer Secretary to the Treasury, my hon. Friend the Member for Grantham and Stamford (Gareth Davies).

My right hon. Friend the Chancellor of the Exchequer delivered an autumn statement with a clear intention to strengthen the economy now and for the future. The Government proposed to do that by putting money back in people’s pockets and cutting taxes. The Finance Bill that we are debating today does just that. First, it supports British businesses by allowing them to invest for less, which will encourage innovation and enhance productivity. Secondly, its measures will improve and simplify our tax system, which will ensure that it is fit for purpose.

The Bill covers 36 different measures in total, some of which are more complex than others. Madam Deputy Speaker, you will be pleased—or perhaps displeased—to know that I do not intend to cover every one in detail in this opening speech. I would like to focus on some of the key themes and measures.

I will first detail the Bill’s measures to support British business. The Government understand the simple truth that a strong private sector drives economic growth. That growth in turn serves the public good by allowing the Government to invest in public services. Perhaps most importantly, it allows the Government to support the most vulnerable. That understanding has shaped our approach. That is why we are lowering business taxes: because it will incentivise investment and boost private sector growth.

The Bill’s first measure to achieve that will make full expensing permanent, allowing businesses to invest for less. As a result, the UK’s plant and machinery capital allowances will increase. It is effectively a tax cut to companies of over £10 billion a year—the most generous of any major economy. The benefits to the economy of the policy—just this measure alone—are that it will drive 0.1% GDP growth over the next five years, increasing to almost 0.2% in the long run, and it will unlock an additional £3 billion of investment per year. That is only one of many Government policies backing British businesses.

The Government also recognise the important role of research and development in driving both innovation and economic growth as well as the benefits it can bring to society as a whole. Therefore, we will merge two Government programmes: the research and development expenditure credit scheme and the small or medium enterprises scheme. That will have two key impacts: it will simplify the system and provide greater support for UK firms to drive innovation. Those changes will apply from April 2024 onwards.

The support does not stop there. The Government will also introduce greater support for loss-making R&D-intensive SMEs. We will also lower the R&D intensity threshold required to access that to 30%. That will help about 5,000 extra SMEs, and they will receive £27 per £100 of qualifying R&D invested. Let us be in no doubt that this is a major boost for innovators across the UK. These measures significantly increase support to R&D firms to about £280 million a year by 2028-29, and overall they will ensure the success of UK plc.

I will now outline the next measure to back British businesses. The Government will extend the sunset clause for two more programmes: the enterprise investment scheme and the venture capital trust scheme. Both will be extended to 6 April 2035. That will support young companies to raise capital for successful growth.

The Government applaud our world-leading creative sector—after all, it grew 1.5 times faster than GDP between 2010 and 2019. In response, a new measure to back British business will go even further through reforming tax reliefs to refundable expenditure credits for the film, TV and video games industries.

[Andy Carter (Warrington South) (Con)]

I am pleased to hear the Minster outline support that the Government are giving to the creative industries, which secures thousands of jobs around the UK, and particularly in the north-west of England, where we have seen a huge creative hub develop. Does he agree that it is not just about jobs, though? It is also about soft power, which the creative industries ensure goes right around the world, with great British TV and film. Does he also agree that we want to see that continue?

[Nigel Huddleston]

Yes. My hon. Friend makes an important point. The jobs and economic activity are hugely important, but we are known throughout the world for excelling in the creative sectors—we always have, and we always will. We can all be proud of the incredible creative talent in the UK. He is also right to highlight how it is spread right across the UK.

Sport Sector: Financial Support

Debate between Nigel Huddleston and Andy Carter

Thursday 19th November 2020 Commons Chamber

[Nigel Huddleston]

Perhaps I should it make clear that we encourage all clubs to take advantage of whatever Government support measures may be out there, including the existing scheme. This scheme and announcement is on top of existing schemes. I therefore encourage everybody and anybody to apply for everything they are eligible for. Of course, we are talking about a £300 million package, with over £100 million going to rugby union. Therefore, by definition, they will be better off than they would have been.

[Andy Carter (Warrington South) (Con) [V]]

I welcome the news that the Government have agreed further financial support for rugby league clubs, which recognises the really important work that clubs such as Warrington Wolves do in our communities. Will my hon. Friend set out more details about that assistance for rugby league clubs? What contribution can his Department give to underwrite the world cup, which, as he knows, is due to be played here next year?

[Nigel Huddleston]

I thank my hon. Friend. Indeed, we are announcing today an additional £12 million for rugby league, and that is on top of the £16 million that was announced earlier in the year. We will be working with the Rugby Football League to distribute that additional money. Actually, it has done a pretty good job so far, and therefore we will continue with the existing scheme, but topping it up with the £12 million. Like him, I am very much looking forward to having my first visit to a game in an official capacity as sports Minister, and maybe rugby might be one such game, but I hope that is before the world cup.

Covid-19: Support for Rugby League

Debate between Nigel Huddleston and Andy Carter

Monday 2nd November 2020 Commons Chamber

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

Thank you, Mr Speaker. I think I heard that quite clearly!

I thank the right hon. Member for Normanton, Pontefract and Castleford (Yvette Cooper) for tabling the topic for this debate, and I thank all those who have participated in it. I certainly noted the gender balance this evening, and it speaks volumes about rugby. I know how deeply she feels about the welfare of this sport and the communities it serves, as we have discussed this matter on many occasions, as indeed have you and I, Mr Speaker. Rugby league clubs such as Castleford Tigers and Warrington Wolves, and others, are at the heart of their local communities and it is vital that they are protected. The Tigers are rightly a source of great pride to the town and bring the whole Castleford community together. May I also take the opportunity to join the right hon. Lady in sending my best wishes for a speedy recovery to the players and others recovering from coronavirus in her community?

I know that Castleford without its rugby team would be unimaginable and that rugby league clubs are vital to their towns right across the country, as the right hon. Lady articulated so eloquently. That is why in May rugby league received a £16 million support package from the Government to safeguard the immediate future of the sport and the communities it serves—that was long before any other support package for any other sport, in recognition of that important contribution. These loans were administered by the Rugby Football League, and we have been working with it and Sport England to ensure that support is provided to those who need it, including the Castleford Tigers. The Government have also supported rugby league through more than £11 million of Sport England funding over the 2017 to 2021 funding period, as well as by investing in hosting the rugby league world cup in 2021, which I know will be a fantastic event—we are all looking forward to it.

The Government recognise the impact that covid-19 is having across the economy and in particular on the sporting sector. Clearly, the Prime Minister’s announcement on Saturday of the new national restrictions, although necessary to prevent the continued spread of the virus, will have further impacts on sport. However, as he announced, elite sport will be able to continue, behind closed doors, over the next four weeks of increased restrictions, and that is further testament to the Government’s support for elite sport. It will not only enable vital broadcast revenue to flow into sports, but ensure that sport continues to bring joy to millions of fans. The month-long extension to the current furlough scheme will benefit clubs that have had to delay the resumption of matches, while ensuring that their talented players and staff are assisted through these challenging times. In addition to the bespoke support for rugby league, Sport England’s community emergency fund has provided £210 million directly to support community sport clubs and exercise centres through this pandemic.

More widely, the Government have, of course, provided an unprecedented support package for businesses, through tax reliefs, cash grants, employee wage support and many other measures, which many sport clubs have benefited from. However, I recognise and acknowledge that, as the right hon. Lady and others have said, sports clubs, and rugby clubs in particular, are about more than just sport. They often rely on many other sources of revenue, and they have been able to take advantage of some but not necessarily all Government support measures.

As the right hon. Lady will be aware, one key area of focus now is supporting organisations in the sporting sector affected by the decision not to allow spectators in from 1 October as originally planned. The Prime Minister announced on 22 September that sporting events would not be able to take place with socially distanced crowds from 1 October as planned. Although that was obviously disappointing, it was necessary in order to stop the spread of covid-19. The Department has been working with colleagues in the Treasury and with the sports sector to assess the scale of support required and the timescales within which it is needed. That has included further work with the RFL to understand the challenges for rugby league as we head into the forthcoming winter. We are working with the Treasury on those proposals now, and we hope to be able to announce the outcome of these discussions shortly.

[Andy Carter]

I pay tribute to the fantastic speech made by the right hon. Member for Castleford Tigers this evening. Like her, I look at the welcome support that the Government have given to rugby league clubs. However, one thing that would be really helpful would be some indication of the criteria under which clubs would be able to welcome back spectators into their grounds. That would help them to plan and think about the future, rather than just considering what they cannot do at the moment.

[Nigel Huddleston]

Of course, we all want to get fans back into stadia as soon as possible, but only when it is safe to do so. I will mention more about that later in my speech and will be happy to have a follow-up conversation with my hon. Friend.

I know that the right hon. Member for Normanton, Pontefract and Castleford has previously suggested tax breaks and other measures, particularly business rates holidays. I am happy to say that clubs already benefit from a business rate holiday through to March 2021, which should help them through the winter. We are in conversations with the Treasury and others about other measures that she has suggested.

Rugby—both league and the other one—has many, many fans right across the country and many stakeholders, including in this place. I was pleased to learn from the right hon. Lady that my Department and the team there, who work so hard, have been engaging with many organisations and bodies, including the all-party parliamentary group on rugby league and many other Members in this place. As I said, there are many stakeholders. The RFL in particular has been a valued partner of the Government in the application of the guidance and its development, which has enabled the return of elite sporting competition. I am also grateful to the RFL for the successful delivery of the restarted super league behind closed doors, securing broadcast revenue that will benefit the whole game at this challenging time.

As I said before, we know that the decision not to reopen stadia to spectators on 1 October was immensely disappointing, particularly following successful pilots through August and September. I am grateful to the clubs that have piloted the return of spectators so far. Work continues at pace to find solutions that will allow crowds safely back into stadia as soon as possible. The Government will continue to work closely with the Sports Grounds Safety Authority and a whole range of sports to understand the latest thinking that might allow spectators to return. That includes the creation of a new sports technology innovation group of sporting bodies and health experts to analyse new technologies that will support that. Work continues at pace to find solutions that will allow crowds safely back, but spectators will return to stadia only when it is safe to do so. We will keep the situation under continual review.

As the right hon. Lady said, rugby has a rich heritage in its heartlands and a proud history stretching back over 100 years. But as has been mentioned, there is also an exciting future. We know that the importance of the professional game has come into even more focus given that next year’s rugby league world cup is being hosted on these shores, and the Government are firmly committed to delivering a successful world cup tournament in 2021. Next year’s world cup will bring additional significant exposure on free-to-air TV; it will also be the first time that the men’s, women’s and wheelchair tournaments take place at the same time, as the hon. Member for Warrington North (Charlotte Nichols) mentioned. It will be a great opportunity to showcase the game and encourage even more people to get involved in this wonderful sport. It will demonstrate to the world, once again, this country’s skill in hosting world class tournaments and events and showcase that Britain is open for business and a bit of fun.

We can but hope that the world cup will be a global celebration of humanity at a time when we trust that the worst of the current crisis will be behind us. Once again, I thank the right hon. Lady for securing this debate tonight, to highlight the importance of rugby league and the vital role that it plays in our communities. I hear, as I am sure does the Treasury, all the requests and points made in this evening’s debate. The support secured already for rugby league was a reflection of the enormous social and economic contribution that rugby league clubs make to their communities; the very real threat to the whole sport earlier this year and indeed currently; and the special circumstances of hosting the 2021 rugby league world cup.

As I have said before, the events of recent months have shown that the impact of sports clubs reaches beyond sport itself; they have proved themselves to be the bedrocks of their communities during this pandemic. We will do what we can to ensure that they continue to be so long into the future.

Question put and agreed to.

10.29 pm

House adjourned.