HMRC Self-Assessment Helpline

Debate between Nigel Huddleston and Drew Hendry

Wednesday 20th March 2024 Commons Chamber

[Mr Speaker]

I call the SNP spokesperson.

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

This is absolute chaos. The proposal to permanently close the self-assessment helpline for half the year was truly half-baked and irresponsible, as were the planned restrictions to the VAT helpline. The reversal is welcome, but the fact that the announcement was made at all highlights the disconnect at the heart of HMRC’s customer operations. As the Federation of Small Businesses has pointed out,

“customer service levels are at an all-time low”—

a view backed up by the Public Accounts Committee. At a time when the Chancellor’s policies are fiscally dragging more people into PAYE, the proposal was typically tone deaf to people’s needs.

Fran Heathcote of the PCS union has said that

“the combination of low-pay and micro-management”

is “rife across the whole” of HMRC’s customer service department. The Minister said that HMRC is a non-ministerial Department, but we know that it has been told what to do by the Chancellor overnight. When did the Government get notice of the announcement? Was it a reaction to the Chancellor’s decision to cut HMRC’s budget by £1.6 billion next year? Will he now ensure that the cut is reversed and order HMRC to recruit more customer service staff, and will he now instruct HMRC to make the reversal permanent?

[Nigel Huddleston]

As I outlined a few moments ago, I think we can all appreciate that in order to serve customers, and particularly those who most need support, we need to ensure that those who do not need to go online have alternative channels—by the way, the customer service levels are higher in online channels—and the use of the app, which I encourage all individuals to use. Those who can go online will find a very effective and efficient service, so this is absolutely the right strategy and one that I completely and utterly support. We have also previously had a trial closure of the lines, and the report released yesterday showed that it worked quite well.

The hon. Gentleman also asked about redeployment. HMRC is proactive in notifying people who, for example, do not need to provide a self-assessment form. I think more than 1 million people were notified last year that they did not need to do so. Following other changes in Government policy, we have also communicated that those on high incomes—up to £150,000, for example—but do not have complex tax affairs do not need to provide a self-assessment return. There is a broad package going on here to enhance and improve customer service, but we recognise that many people like and would prefer a telephone service.

National Insurance Contributions (Reduction in Rates) (No.2) Bill

Debate between Nigel Huddleston and Drew Hendry

2nd reading
Wednesday 13th March 2024 Commons Chamber

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

I thank all right hon. and hon. Members for their contributions. I think it would be fair to say that a range of perspectives have been presented, but most of us—certainly on the Government Benches—agree that this is an important piece of legislation. It will deliver tax cuts that make the tax system fairer, while rewarding and incentivising work, and growing the economy in a sustainable way. The national insurance cuts are an important part of that, and they are policy.

I want to respond to the confusion of the hon. Member for Hampstead and Kilburn (Tulip Siddiq), which is understandable given that we have heard promises, policies, aspirations and ambitions from the Labour party in relation to the £28 billion. Let me be clear: it is my party’s ambition to eliminate national insurance. I know that Labour Members do not understand what the word “ambition” means and that it is difficult, but it is an ambition. That is the difference.

I will briefly reiterate the Bill’s main measures and what they seek to achieve. First, the Bill builds on the cuts to national insurance announced in the autumn statement by reducing the main rate of class 1 employee NICs from 10% to 8%. That change will come into effect from 6 April 2024, with employees benefiting from April onwards as employers make the changes to their payroll systems. Secondly, the Bill reduces the self-employed class 4 main rate of NICs from 8% to 6% from 6 April. That follows on from the one percentage point reduction to the main rate of class 4 NICs from 9% to 8% announced in the autumn statement 2023.

Now that inflation is falling and the economy is improving, as we saw in this morning’s figures, which I am sure the Opposition welcome, we can responsibly return some money to taxpayers, but it is important to do so in a way that supports work and grows a sustainable economy for the future. A UK employee can already earn more money before paying income tax and social security contributions than an employee in any other G7 country, and thanks to the NICs cuts in the autumn statement and the spring Budget and above-inflation increases to thresholds since 2010, an average worker on £35,400 in 2024-25 will pay over £1,500 less in personal taxes than they would have done if the thresholds had just increased in line with inflation. As my hon. Friend the Member for St Austell and Newquay (Steve Double) pointed out very well, in contrast to the comments of the hon. Member for Hampstead and Kilburn, we have reduced the amount of tax paid by increasing the threshold from £6,500 to more than £12,500 over the period in which we have been in office. Labour opposed many of those threshold increases.

My hon. Friend the Member for St Austell and Newquay also made the important point that the measures we have taken in recent fiscal events have been focused on helping 29 million workers. Some 27 million employees will benefit from an average £900 saving in national insurance, but of course, we also care deeply about pensioners. Those on the full basic pension will receive an extra £700 in April and those on the full new state pension will receive an extra £900, so 12 million pensioners will also benefit from the significant increases that we will provide through the triple lock. Of course, it is perfectly fair that workers also get some advantage—they will be receiving the benefits I have outlined. The Government are cutting taxes in a responsible way, and have taken difficult but responsible decisions to restore the public finances in the wake of global crises.

[Drew Hendry]

The Minister has used the word “responsible” a number of times. As has been pointed out by many organisations, not least the Institute for Fiscal Studies and the OBR, there will be substantial cuts to public services. With many English councils already in special measures—effective bankruptcy—where does the Minister see those cuts falling? How will they filter through to the public, and what will be the effect on public sector jobs?

[Nigel Huddleston]

As the hon. Member will be aware and as the Chancellor outlined, based on current spending assumptions, total departmental spending will still be £86 billion higher in real terms by 2028-29 than at the start of this Parliament. If he was listening to the debates earlier this week, he will be aware that we will increase spending in real terms by 1% during the forecast period.

The hon. Member and others have raised points about fairness and making sure that we look after the most vulnerable in society, which is of course something we are committed to. Distributional analysis published alongside the spring Budget shows that the typical household at any income decile will see a net benefit in 2024-25 as a result of Government decisions made in the autumn statement—and, indeed, from the autumn statement 2022 onwards—and that low-income households will see the largest benefit as a percentage of income.

We have mentioned many times our commitment to the national living wage. It will soon increase by 9.8% to £11.44, which is expected to benefit around 2.7 million workers. It is important to stress that from April, a full-time national living wage worker’s take-home pay will be 35% greater in real terms than it was in 2010, due to successive increases in the national living wage and changes to personal tax rates and thresholds.

To respond to a few other comments made by right hon. and hon. Members, my right hon. Friends the Members for Witham (Priti Patel) and for Wokingham (John Redwood) both gave excellent speeches, in which they not only championed workers—including the self-employed—but highlighted the fact that we have to operate in a particular context. As has been mentioned many times today, we are in a difficult financial situation because of a global pandemic that hit the global economy, which was followed by the invasion of Ukraine and the significant impact it had on inflation around the world.

The question, as my right hon. Friend the Member for Wokingham pointed out, is how much higher taxes would be if Labour had been in charge. Throughout the pandemic, the Government received a lot of support from Members on both sides of the Chamber. That was completely right, but many Members were calling for even greater intervention and even longer lockdowns, which would potentially have done immense damage to the economy.

Some hon. Members raised the contributory principle. In our ambition for further reductions in national insurance, we will make sure that the future tax system has the right mechanism for establishing entitlement to contributory benefits, including the state pension. My right hon. Friend also mentioned the rise in the VAT threshold, which is really important. It will go from £85,000 to £90,000, which means that 28,000 fewer small businesses will be registered for VAT. My hon. Friend the Member for Ruislip, Northwood and Pinner (David Simmonds) highlighted this Government’s record on jobs in creating 800 jobs a day and in significantly reducing youth unemployment, of which we can all be proud.

My hon. Friend the Member for Aberconwy (Robin Millar), who raised many important points in his speech, pointed out the rather irresponsible scaremongering we have heard today from those on the Labour Front Bench relating to spending on pensions and the NHS. The Opposition should be well aware, especially if they wish to form a Government, that the money raised by NICs does not determine the amount going to the NHS and state pensions. We have announced increasing funding to the NHS and we are uprating state pensions by 8.5% this year, as I have mentioned. We on these Benches can tolerate a decent debate—we are fairly robust— but we will not tolerate irresponsible scaremongering, especially when targeted at the most vulnerable in society, purely to try to take political advantage from making up policies that do not exist. I hope that at some point the Opposition will either get some economic competence or apologise for that.

This really important Bill delivers tax cuts for over 29 million working people. A yearly saving of over £450 for the average worker will result from this Bill alone. Taken together with the cuts to NICs at the autumn statement, it will be worth over £900 per year for the average worker. This will benefit households throughout the United Kingdom and in every single constituency represented in this place. However, here we are again, and in nearly three hours of debate, we have heard nothing but doom and gloom from the Opposition. How disappointed they must have been this morning to hear that the economy has grown. While I am not pretending for one minute that everything is perfect—as I have said, our constituents and the country have been through a very challenging time—it is important to recognise, welcome and applaud success, especially if a party wants to lead a country, champion trade abroad and attract investment. What a terrible advert for the UK we have heard from the Opposition today, who are completely lacking in confidence and ambition for our economy and our workers.

The national insurance cuts we are debating reward work and will provide a further boost to the economy. We are turning a corner, and the plan is working. While we want to put more money back into people’s pockets, the Opposition want to take more out, and while we take every opportunity to talk the country up, they take every opportunity to talk Britain down. The choice is very clear: a plan for growth and a brighter future with the Conservatives, or no hope, no clue and no plan with the Opposition. I commend the Bill to the House.

Oral Answers to Questions

Debate between Nigel Huddleston and Drew Hendry

Tuesday 6th February 2024 Commons Chamber

[Mr Speaker]

We go back to Scotland: I call the SNP spokesperson.

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

Contrary to what the Minister said, OECD forecasts show that the UK will have the lowest growth in the G20 and the highest inflation in the G7. Ministers like to pretend that there is no real cost of living crisis, but there is one, and it is biting hard. How long will Ministers—and their Labour counterparts—continue to peddle the fantasy that Brexit is somehow good for the Scottish people?

[Nigel Huddleston]

I am afraid that the thing that would most impoverish the people of Scotland is separation from the UK. After 16 years of SNP rule—longer than the Conservatives’ in England—GDP per head in Scotland is lower, productivity is falling, employment is lower and inactivity is higher. That is not exactly a proud record.

[Drew Hendry]

The Minister talks about GDP. The Office for Budget Responsibility forecast that GDP in the UK will be 4% lower in the long term due to Brexit. Meanwhile, independent Ireland in the EU is booming with a giant fiscal surplus. Given that the Tories, Labour and the Lib Dems are all now champions of Brexit, is it not the case that the only way for Scotland to rejoin the EU is through becoming an independent country?

[Nigel Huddleston]

The hon. Gentleman knows that the IMF has forecast us greater growth than France, Italy and Germany over the next few years. If he is so enthusiastic about supporting growth, including helping businesses across the United Kingdom, perhaps Scottish National party Members could have joined us in the voting Lobby last night instead of voting against, for example, full expensing and investment in research and development. They voted against that—how on earth is that in the interests of their constituents?

National Insurance Contributions (Reduction in Rates) Bill

Debate between Nigel Huddleston and Drew Hendry

Committee of the whole House
Thursday 30th November 2023 Commons Chamber

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

Before I come to my point, may I add my own condolences and those of my party to the family and friends of the former Chancellor, Alistair Darling? Clearly, we were on very different sides of the fence, particularly on independence, which was heavily contested nine years ago, but he was a towering intellect and a very important figure in Scottish public life. As I say, we pass on our condolences to his family and friends.

My question is also on the operation of clause 1. HMRC has stated to the Treasury Committee that it is unable to cope with inquiries either in writing or by phone at the moment, and that it is under severe pressure. I, too, would like to know how the clause will be given effect by 6 January, and what measures the Government are taking to ensure that that happens.

[Nigel Huddleston]

I thank hon. Members for their questions. I can assure them that HMRC is engaging with industry and providing relevant guidance to support it to deliver the changes on time. We expect the majority of companies to be able to do so, particularly in this era, when many of the changes can be made on various systems. The Government are confident that the majority of software developers will be able to make changes to their payroll software in time for the 6 January deadline.

Question put and agreed to.

Clause 1 accordingly ordered to stand part of the Bill.

Clauses 2 to 5 ordered to stand part of the Bill.

New Clause 1

Review of effects of Act

“(1) The Treasury must lay before the House of Commons on the day on which this Act is passed a report which sets out forecasts of—

(a) the changes to the amount of national insurance contributions deducted from the annual income of a full-time worker earning the national living wage as a result of the measures in this Act over the period 2023/24 to 2027/28, and

(b) a comparison with the changes to the amount of national insurance contributions deducted from the annual income of a full-time worker earning the national living wage as a result of the thresholds for payment of national insurance remaining frozen over the period 2023/24 to 2027/28, rather than rising in line with CPI.

(2) The report in subsection (1) should also set out the costs to (i) businesses, and (ii) government , of implementing the changes in this Act, and compare them to the costs of—

(a) implementing a 1.25% point increase in national insurance contributions in April 2022, and

(b) implementing the reversal of the increase in paragraph(a) in November 2022.”—(James Murray.)

This new clause would require a review of the effects of the Bill if enacted over the period 2023/24 to 2027/28, on someone earning the national living wage, compared with the effect of national insurance thresholds being frozen, and a comparison of the expected implementation costs of this Bill with those of implementing and repealing the Health and Social Care Levy Act 2021.

Brought up, and read the First time.

Trade (Australia and New Zealand) Bill

Debate between Nigel Huddleston and Drew Hendry

Report stage
Monday 12th December 2022 Commons Chamber

[Nigel Huddleston]

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

Our deals with Australia and New Zealand are the first trade agreements in almost 50 years that the UK has negotiated from scratch. Members from across the House have rightly been eager to engage with the Bill, and I thank them all for continuing to do so. I also thank Members who sat on the Public Bill Committee for their work in scrutinising the Bill, and in particular my right hon. Friend the Member for The Wrekin (Mark Pritchard) and the hon. Member for Halton (Derek Twigg) for their expertise in chairing the Committee.

Members have rightly shown a great interest in the Bill, and I would like to use this opportunity to give the House further assurances. First, Members expressed concerns about the opportunities that the devolved Administrations have had to shape the Bill. I can assure the House that our procurement teams have consistently held roundtables with their counterparts from the devolved Administrations. During negotiations with Australia and New Zealand, they discussed the text of procurement chapters. Discussions on the Bill, and the changes in procurement regulations that it creates, have regularly taken place. Indeed, during negotiations, ministerial and official level engagement on these free trade agreements totals hundreds of hours. That includes 25 meetings with the Australia FTA chief negotiator, specific discussions at the ministerial forum for trade, and senior official conversations on policy content. My officials continue to work closely with their counterparts at the devolved Administrations to address the concerns raised regarding the powers in the Bill. I myself have also had constructive conversations with Ministers from the devolved Administrations. The Government remain committed not to using the concurrent power in the Bill without first consulting the devolved Administrations. I want to stress to the House that the powers are the most logical and efficient way of making minor, technical changes to our procurement regulations.

On Report, we discussed how the Government are committed to providing, for each agreement, a monitoring report every two years, and an evaluation within five years of entry into force. The reports will assess the entirety of the agreements and not limit themselves to the procurement chapters alone.

I would like to say a couple more thank yous: first, to the Bill team at the Department for International Trade—James Copeland, Donald Selmani, Jack Collins, Alex Garcia-Pineiro and Catherine Ajani—as well as the other officials who make up my fantastic team. I would like to thank the parliamentarians who have taken part in this and other debates on the legislation, and of course the International Trade Select Committee, as well as the wonderful staff here in the House.

I also want to thank the Opposition spokespeople for the constructive way in which they have approached scrutiny of the Bill. It was remiss of me earlier not to welcome the new SNP spokesperson, the hon. Member for Gordon (Richard Thomson) to his role, and I do so now. I also thank his predecessor, the hon. Member for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry). Who knows, but perhaps under the new leadership we may actually get the SNP to vote in favour of a trade deal. [Interruption.] Indeed, I suspected that may be the case.

[Drew Hendry]

Will the Minister also extend the hope that the Government may accept one of the SNP amendments one of these days?

[Nigel Huddleston]

The key thing is that we estimate that these deals will considerably boost the UK economy and all nations. Businesses in every single constituency will be able to grasp new opportunities from this Bill. It will therefore benefit the whole of the country, and I hope that just perhaps it will get the support of the whole House. I am delighted to commend this Bill to the House.

Oral Answers to Questions

Debate between Nigel Huddleston and Drew Hendry

Thursday 3rd November 2022 Commons Chamber

[Mr Speaker]

I am going to make an even bigger point: we are not reading out phone books as answers.

I call the Scottish National party spokesperson, Drew Hendry.

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

I welcome the Minister to his places—I think that is the right thing to say.

It is vital that, for a change, we get a chance to actually scrutinise proposed deals before they become real. India has no detailed plan, for example, to cut emissions, and 70% of its economy is powered by coal. Cabinet Office emails have shown that the former Trade Secretary and Prime Minister decided to

“drop both of the climate asks”

from the UK-Australia agreement to get it “over the line”, even though Australia has a history of coal pollution. Given that the current Prime Minister had to be shamed into attending COP27, does that mean that no legally binding demands will be made in the UK-India discussions?

[Nigel Huddleston]

Again, I disagree with that characterisation —respectfully, because I am looking forward to a constructive relationship with the Scottish National party, Opposition Members and the devolved Administrations on trade deals. Let us be very clear: we will not sign any deals that are not in the UK’s interests.

[Drew Hendry]

The Minister did not answer the question. The UK has rolled over 35 EU agreements and signed trade deals with Australia and New Zealand, yet they have included no realistically enforceable measure to plug the climate change gaps that we have pointed out in all of them from the start. The New Zealand text cannot be enforced and climate has been dropped altogether from the Australia deal. There are gleeful reports from India that there will be no more than warm words on climate change. Why is real action on the climate emergency ignored in every deal that this place brings forward?

[Nigel Huddleston]

The hon. Member mentions “every deal that this place brings forward”, and again, it would be nice if we actually got support from Opposition Members at some point. He will know that our friends, colleagues and trading partners in Australia, in particular, given the situation they face, are as concerned about climate challenges as we are.

Digital Economy Bill (Second sitting)

Debate between Nigel Huddleston and Drew Hendry

Committee Debate: 2nd sitting: House of Commons
Tuesday 11th October 2016 Public Bill Committees

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

I do not have any direct interests, but for full transparency I draw the Committee’s attention to my share ownership in Teclan Ltd, which is in the Register of Members’ Financial Interests.

[Nigel Huddleston (Mid Worcestershire) (Con)]

Again for full transparency, prior to becoming an MP I worked for Google, in which I have a small share interest at the moment.