Oral Answers to Questions

Debate between Nigel Huddleston and Debbie Abrahams

Tuesday 6th February 2024 Commons Chamber

[Nigel Huddleston]

Of course, Labour left us in pretty terrible financial circumstances back in 2010. Instead its figure is up £28 billion in real terms at the start of the next Parliament, an increase of 40% in real terms or 7% annually—the biggest ever published.

[Debbie Abrahams (Oldham East and Saddleworth) (Lab)]

Small businesses are the backbone of our economy, but they have a constant problem with late payments, which increased by 7% last year, and that is driving many of them into insolvency. Given that the Government are a major contractor, what are they doing through project bank accounts to reduce the impact of late payments?

[Nigel Huddleston]

The hon. Lady makes an important point, and I know there is agreement on this issue across the Chamber. We made statements last year along those lines, putting particular pressure on the public sector. I am sure there will be continuing pressure on the private sector, too.

Finance Bill

Debate between Nigel Huddleston and Debbie Abrahams

Committee of the whole House
Wednesday 10th January 2024 Commons Chamber

[Debbie Abrahams (Oldham East and Saddleworth) (Lab)]

Following on from the comments of the hon. Member for Amber Valley (Nigel Mills) about the impact of the schemes and given the Federation of Small Businesses’ request for some publication about the impact of these tax reliefs on R&D levels, will the Minister also publish a report on their impact on different regions and subregions?

[Nigel Huddleston]

All taxes are kept under review, as are their impacts, so some of the calls for further analysis are not necessary because we do that as a matter of course. It is important to stress that many external studies have found that when full expensing has been introduced in other countries, it has been very effective in supporting investment. Of course, the OBR forecasts predict a boost of £3 billion each year. The analysis of the impact of the super-deduction is already taking place, but companies have 12 months from the end of their accounting period to amend their tax returns, so HMRC will not have complete data on the impact of the super-deduction until 2024. However, we will provide further analysis in due course.

My hon. Friend the Member for Erewash mentioned a whole range of real-world impacts from these measures and the previous measures, including the super-deduction, as well as, importantly, the annual investment allowance of £1 million, which affects the 99% of smaller businesses that can effectively benefit from full expensing. In the autumn statement, we announced full expensing for larger businesses: the top 1%, who conduct about 80% of full investment.

I am aware of time, but will cover a couple of other key points that were raised. My hon. Friend the Member for Erewash raised subcontracting. Again, we engaged extensively with stakeholders on this issue over the summer, and the Government have developed an approach that will allow the person taking the decision to do R&D to claim that relief. That was the preferred result of the consultation. However, an exception will apply in the important area that she mentioned of companies doing R&D—such as in a clinical trial—in the UK for another company that is ineligible for relief because, for example, it is an overseas customer. That is to make sure that the impact is there for everyone to benefit from. The hon. Member for Ealing North also mentioned partnerships; a corporate partner is eligible for full expensing, but an unincorporated partner is not. Again, the annual investment allowance of £1 million covers the investment needs of almost all unincorporated partnerships.

The hon. Member keeps harping on about taxes rising. I strongly advise him to look at his December payslip and compare it to the one he will get shortly. Maybe he will have the decency to come to me and tell me whether his tax is lower or higher. Each fiscal event needs to be taken separately. At the last one, the autumn statement, we cut taxes—national insurance is down 2p. [Interruption.] If the hon. Member does not believe me, I pose this challenge to him: if his payslip shows that his taxes are lower, perhaps he will do me the courtesy of coming to me and apologising, or give the difference to a charity, to put his money where his mouth is.

We do not believe that new clause 1 is necessary because the information has already been published in the tax impact and information notes alongside each change, which give a clear explanation of the policy objectives, along with details of the implementation costs for both HMRC and businesses. Therefore, the new clause is not necessary. I urge the House to reject it, and I commend clauses 1 and 2 and schedule 1 to the Committee.

Question put and agreed to.

Clause 1 accordingly ordered to stand part of the Bill.

Clause 2 ordered to stand part of the Bill.

Schedule 1 agreed to.

New Clause 1

Review of reliefs for research and development

“(1) The Chancellor of the Exchequer must, within three months of this Act being passed, publish a review of the implementation costs of the measures in section 2 incurred by—

(a) HMRC, and

(b) businesses.

(2) The review under subsection (1) must include details of the implementation costs of all measures related to credit or relief for research and development that have been introduced since December 2019.”—(James Murray)

Brought up and read the First time.

Question put, That the clause be read a Second time.

Football Governance

Debate between Nigel Huddleston and Debbie Abrahams

Monday 25th April 2022 Commons Chamber

[Nigel Huddleston]

My hon. Friend makes valid points. That is at the heart of what we are doing. The role of the regulator is to be there not in and of itself but for a purpose, which is to make sure that football is sustainable in the long run. Many elements, including financial regulation, governance, engagement with fans and the treatment of heritage assets, will be fundamental to the licensing condition, and there will, of course, be a new owners and directors test. All that together should ensure there is much less chance of clubs getting into difficulty, whether financial or related to their treatment of the fanbase. Our package should achieve the very things my hon. Friend is looking for.

[Debbie Abrahams (Oldham East and Saddleworth) (Lab)]

I too pay tribute to my friend the hon. Member for Chatham and Aylesford (Tracey Crouch) for all the work that she has done. Unfortunately, as we have already heard, Oldham Athletic is the first founding member of the Premier League to drop out of the football league. It has hit many of the town’s fans hard.

I share the concerns about the delay, but I also have a question to ask on behalf of my right hon. Friend the Member for Ashton-under-Lyne (Angela Rayner) and my hon. Friend the Member for Oldham West and Royton (Jim McMahon). Can the Minister be more specific about how long it will take to reverse the position of wealth sitting at the top of football and failing to be redistributed down to the lower leagues, and of allowing rogue owners to use clubs as their personal playthings?

[Nigel Huddleston]

I have a great deal of sympathy for Oldham fans. The hon. Lady makes some important points. Many of the proposals we have outlined should help to ensure that that kind of situation does not happen in future. As I have said repeatedly today, what I am announcing is progress and how we are moving forward. I have to push back against the narrative of delay; this is about how we are moving forward.