Finance Bill

Debate between Nigel Huddleston and Baroness Keeley

2nd reading
Wednesday 13th December 2023 Commons Chamber

[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.

[Barbara Keeley (Worsley and Eccles South) (Lab)]

The Minister is talking about creative industries, and the hon. Member for Warrington South (Andy Carter) talked about soft power, but I wonder whether the Minister will get on to the changes to other cultural tax reliefs included in the Bill. Among other proposed changes, the Bill will remove European economic area expenditure from qualifying costs for orchestral tax relief from next April. That will result in a significant long-term cut for orchestras that tour Europe frequently. Does he not see that orchestra tax relief—an important cultural tax relief—is working as it is and should not be amended to the detriment of those orchestras, which should be supported?

[Nigel Huddleston]

The hon. Lady makes an important point about the success of our creative industries, and particularly the music industry and orchestras. She will be well aware, though, that we are not in the European Union any more, so some of the EEA measures no longer apply. Instead, we have to be World Trade Organisation-compliant. That bring some challenges, but we are certainly there to support the industry across a whole range of measures. I have already mentioned some of them, but we are doing even more with targeted measures to support the sector, because we want to boost investment in three other areas: animated film, animated TV and children’s TV programmes. As a result, those will be eligible for a 5% uplift to a 39% credit rate.

[Barbara Keeley]

The Association of British Orchestras has warned that, for some orchestras, the proposed changes to orchestral tax relief risk making European touring financially unviable. Given the financial and administrative burdens that the Government have already forced on orchestras through their botched Brexit deal, it seems ludicrous to create more difficulties for orchestras that are touring, especially as orchestra tax relief is working fine as it is. Does the Minister not accept—I know that he has had evidence on this—that the changes are unnecessary and damaging to orchestras?

[Nigel Huddleston]

As I outlined, I think the hon. Lady is hoping for measures to turn back the clock to when we were in the EU. We are not in the EU any more, and therefore the world is a different place. However, we are always keen to support and engage with the creative industries, and orchestras in particular. When I was at the Department for Digital, Culture, Media and Sport, we raised those issues again and again—actually, with considerable success—to enable orchestras and tourers to get across Europe, often by doing individual deals with individual countries, which we sometimes have to do now that we are no longer in the European Union.

I will now outline measures to support our employment-boosting agenda. The path to achieve this is clear: we must remove both barriers to work and incentives not to work. Perhaps most of all, though, we must ensure that hard work is rewarded. That is why our spring Budget announcements were so important. Let us take the abolition of the lifetime allowance. The Office for Budget Responsibility estimates that that will retain 15,000 workers annually and the Bill completes that change by removing the lifetime allowance from the statute book completely.

I now turn to the measures to simplify our tax system. Complex and inefficient taxes are one of the biggest restrictions on businesses. They often come at a high cost in terms of both time and capital. It is the Government’s duty to deliver a modern, simpler tax system and the measures in the Bill will help to do just that. Making full expensing permanent is a huge simplification for larger firms, but we are going further by expanding the cash basis for over 4 million smaller growing traders. This will simplify the process to calculate their profits and pay income tax. We have also listened closely to feedback from businesses and, as a result of that consultation, some of the main restrictions on using the cash basis will be removed. The simpler cash basis will be the default method for calculating profit, and businesses will therefore start on the simpler regime as standard. We will also be taking forward other technical small measures. Those will include improving the data that His Majesty’s Revenue and Customs collects from its customers. These measures will result in a trusted modern tax administration system.

We must also build a tax system that is fair and works for everyone. We cannot understate the role of tax in supporting our public services. Taxes pay for them directly and, through attracting investment, indirectly. We must all fairly play our part. The Bill will make promoting tax avoidance a crime in circumstances where persons continue to promote a scheme after the receipt of a stop notice. It will also enable HMRC to act more quickly to tackle promoters of tax avoidance by introducing a new power for HMRC to bring disqualification action against the directors of companies involved in promoting tax avoidance. We will also reduce the scope for tax fraud in the construction industry by amending the construction industry scheme. The amendment will add VAT to the gross payment status test. This means two things: that compliance will now be checked as part of this process, and that HMRC powers to remove gross payment status will be enhanced.

Of course, it is only fair that we also guard against over-collection of tax. The Bill addresses a concern here, too. It will do so by enabling HMRC to reduce the off-payroll working PAYE liability of a deemed employer who is responsible for ensuring that PAYE is calculated and sent to HMRC correctly. This will apply where that engagement is incorrectly treated as self-employed for tax purposes.

It also remains important that we are in lockstep with our international partners during such unprecedented times. In spring, we legislated to implement OECD pillar two in the UK, building on the historic agreement built by the Prime Minister, to a two-pillar solution to the tax challenges of a globalised digital economy. In the Bill, we are making technical amendments to the main pillar two rules identified from stakeholder consultation. That is to ensure that the UK remains consistent with the latest internationally agreed guidance.

The Bill builds on the autumn statement that focused on the long-term growth of the UK economy and sound economic policy. What a contrast to Labour’s fantasy economics, including £28 billion per year of additional spending without any idea where that money will come from—although we all know at heart that it will be taxpayers or through more debt, which is, of course, just deferred taxation. In contrast, this Finance Bill backs British businesses, rewards hard work, and supports a modern and simpler tax system. In doing so, it delivers on the Government’s commitments to prioritise economic growth, encourage business investment, nurture innovation and simplify our tax system to combat tax avoidance. For those reasons, I commend the Bill to the House.

Oral Answers to Questions

Debate between Nigel Huddleston and Baroness Keeley

Thursday 7th July 2022 Commons Chamber

[Mr Speaker]

We now come to the shadow Minister, Barbara Keeley.

[Barbara Keeley (Worsley and Eccles South) (Lab)]

Charities are indeed working harder than ever to support people through this cost of living crisis. They are delivering food to older people, supporting people with the stresses of poverty and working tirelessly to advocate for vulnerable people, yet charities are suffering from a big hit to their income as their running costs spiral and demand for their services rockets. I cannot find any mention that the Secretary of State has made of charities since she was appointed last year. Will the Minister admit that charities have not been a priority for this Government, and when will they take the steps to support the sector to deal with this perfect storm of pressures?

[Nigel Huddleston]

The hon. Lady is completely wrong. The Secretary of State and I talk about and to charities all the time—constantly. What she said goes against the facts. As I just outlined, there was £750 million in charity support during the pandemic, which was a specific recognition of the key role that they play.

Events Research Programme

Debate between Nigel Huddleston and Baroness Keeley

Tuesday 22nd June 2021 Commons Chamber

[Nigel Huddleston]

I thank my hon. Friend for his comments and I agree with him completely. As I said, a huge amount of work and effort has been done by event organisers, as well as by those involved in the events research programme, including the chairs, Nick Hytner and David Ross, for whom we have extreme appreciation. Such events are very valuable and are lifting our spirits in the way described by my hon. Friend.

[Barbara Keeley (Worsley and Eccles South) (Lab) [V]]

The pilot scheme means that, although some events are going ahead at full capacity, other events cannot continue at all. Contradictions in Government guidance mean that amateur choirs cannot even rehearse indoors with protective measures in place, despite other non-professional activities, such as amateur orchestras, brass bands, theatre and grassroots team sports being allowed indoors. Can the Minister explain why choirs have been singled out from other similar risk activities? Will the Government update guidance to allow non-professional choirs to resume their valuable activities, or do they have to apply to be pilot events to be allowed to rehearse and perform?

[Nigel Huddleston]

The hon. Lady is correct in highlighting the difference between professional and non-professional choirs. In accordance with performing arts guidance, non-professional groups of up to six people can now sing indoors. They can also perform or rehearse in groups of up to 30 outdoors, or in multiple groups of 30 outdoors, provided that the groups are kept separate. Those limits do not apply to commercial activities. We all know from our mail bags that this is an area of importance to our constituents, and we want to get choirs up and running again in all formats as soon as possible.

Professional and Amateur Sport: Government Support

Debate between Nigel Huddleston and Baroness Keeley

Wednesday 30th September 2020 Commons Chamber

[Nigel Huddleston]

I know my hon. Friend is a huge fan of sports and we have talked about this issue. He is absolutely right that many clubs went to enormous efforts to put social distancing, hygiene and other measures in place in anticipation of opening. Those efforts will not be wasted. We want to start again as soon as possible. We did not want to stop clubs from opening; we had to in the face of the increase in infections. We want to get back to business as soon as possible.

[Barbara Keeley (Worsley and Eccles South) (Lab) [V]]

The AJ Bell stadium in my constituency is home to both Sale Sharks rugby union club and Salford Red Devils rugby league club. Sale Sharks is the only premiership rugby club in the north-west. It has a women’s team. It employs over 100 people, with hundreds more local jobs reliant on its matchdays. Covid-19 poses an existential threat to clubs like Sale Sharks, to their women’s team and to premiership rugby. Will the Minister therefore seek a targeted funding package to support them as a matter of urgency, and continue with the extra support to rugby league clubs like Salford Reds?

[Nigel Huddleston]

The recognition of the important role that clubs play in their local community, way beyond just the sport, is precisely why we are looking at these measures and the broader economic multiplier impact. Again, I am afraid that I cannot give the hon. Lady details today, but her comments are understood and received.