Oral Answers to Questions

Debate between Nigel Huddleston and Debbie Abrahams

Tuesday 7th May 2024 Commons Chamber

[Nigel Huddleston]

I thank my hon. Friend for her comments and continual interest in this area. The changes to the high income child benefit charge mean that almost half a million hard-working families will gain an average of £1,260 towards the cost of raising their children in 2024-25. She will recognise that that is a meaningful difference for her constituents, and for those across the country.

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

T1.   If he will make a statement on his departmental responsibilities.

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 (First sitting)

Debate between Nigel Huddleston and Debbie Abrahams

Committee stage
Tuesday 16th January 2024 Public Bill Committees

[Debbie Abrahams]

May I absolutely confirm that there will be no retrospective tax collection deductions of carer’s allowance? That is so important, given the issues around deductions.

[Nigel Huddleston]

The hon. Lady is right to highlight that—it is the very question that I asked. Nobody will be financially impacted by the change, which applies to a drafting error that has not been executed. It is a clarification purely and specifically on the legislation, as opposed to having any real-world impact on the finances. It is very important to get that point across, because we do not want anybody to be worried about this change. There is no change in circumstances or amounts. Clause 18 provides clarity on the correct statutory reference under which the Scottish Government’s carer’s allowance supplement payments are made.

Question put and agreed to.

Clause 18 accordingly ordered to stand part of the Bill.

Clause 19

Growth market exemption: qualifying UK multilateral trading facilities etc

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

Finance Bill (Second sitting)

Debate between Nigel Huddleston and Debbie Abrahams

Committee stage
Tuesday 16th January 2024 Public Bill Committees

[Debbie Abrahams]

On that basis, I did ask a question at the autumn statement. In relation to the social security measures, I asked what were the anticipated impacts on the health of social security claimants. I have heard nothing back from anyone on that. If that evidence exists, what is it?

[Nigel Huddleston]

I shall respond to the hon. Lady on the plethora of analysis and support that goes on for a range of policy areas. We are not lacking in either interest in this area or consideration of impact. As I said, there are numerous Government Departments, bodies and other mechanisms already in place to systematically collect, monitor and evaluate the impact of Government policy across the UK.

The Department of Health and Social Care and its arm’s length bodies are responsible for developing and evaluating policies to help people to live more independent, healthier lives for longer. As part of DHSC, the Office for Health Improvement and Disparities works across DHSC, the rest of Government, the healthcare system, local government and industry, to shift focus toward preventing ill health, particularly in places where there are the most significant disparities. DHSC also invests in research and evaluation through the National Institute for Health and Care Research, which delivers robust evidence to inform policy development and implementation, including evaluation of policies and research to fill longer term evidence needs and gaps.

The Treasury carefully considers the impact of its decisions on those sharing protected characteristics, in line with both our legal obligations and our strong commitment to providing fairness. We go beyond our legal requirements by publishing a summary of equality impacts for tax measures within the tax information and impact notes alongside the Finance Bill.

Various parts of Government, including from within the Cabinet Office’s equality hub, promote the Government’s commitment to levelling up opportunity and ensuring fairness for all. The hub includes the Government Equalities Office, the Race Disparity Unit, the Disability Unit, and the Social Mobility Commission, all of which provide valuable input.

As I mentioned in answer to new clause 2, since 2010 the Treasury also publishes an “Impact on households” report at major fiscal events, but I will not repeat the comments I made there. The “Households below average income” report also provides valuable input. For example, in 2021-22, there were 1.7 million fewer people in absolute poverty after household costs than in 2009-10, including 400,000 fewer children, 1 million fewer working-age adults, and 200,000 fewer pensioners. We believe the mechanisms currently in place are effective in providing the necessary insight, so I urge the Committee to reject new clause 3.

[Debbie Abrahams]

I beg to ask leave to withdraw the clause.

Clause, by leave, withdrawn.

Question proposed, That the Chair do report the Bill to the House.

[Nigel Huddleston]

On a point of order, Mr Paisley. Before you conclude your comments, I think this is an appropriate opportunity for me to make similar comments and thanks to those made by my opposite number. I agree with everything he said. I put on record my thanks to you, Mr Paisley, and your co-Chair, who did not have the opportunity to participate in this Bill; there will be other opportunities in the future.

Of course, I thank the Clerks and all officials who have worked on this Bill across multiple Government Departments, including His Majesty’s Treasury and His Majesty’s Revenue and Customs, but it goes well beyond that. I thank members of the Committee in this place, and also members of the House of Lords Sub-Committee for their input and work. I also thank all those stakeholders who have provided invaluable input. Some have provided specific input recently in the form of written submissions to this stage of the process, but many have participated over many years in extensive formal and informal consultations. I put on record our deep gratitude and thanks to all those who have taken their responsibilities and interests incredibly seriously, providing great input into this Bill to date.

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.