(6 years, 7 months ago)
Commons ChamberSince 2010, Her Majesty’s Revenue and Customs has secured more than £175 billion that would have gone unpaid and introduced more than 100 new measures to crack down on tax avoidance, tax evasion and other forms of non-compliance, so that the tax gap is now at a record low, and one of the lowest in the world, at 6%.
I am grateful to my hon. Friend for raising this issue. It is a great achievement to have got the tax gap down to one of the lowest in the world, but we are not complacent. We are currently calling for evidence on whether online platforms should play a greater role in ensuring tax compliance by their users; we are consulting on an innovative split payment method to tackle online VAT fraud; and we will continue to lead in the G20 and other forums on seeking agreed multilateral solutions to the challenge of where and how to tax global digital companies, which are particularly difficult to tax under the current system.
I echo the praise for HMRC’s performance in tackling tax avoidance and evasion over recent years. Is the Chancellor becoming more convinced of the importance of having public country-by-country reporting, so that not only HMRC but customers and campaigners can see where multinationals are making their profit? That way, we can make sure that they are paying the right tax in the right countries.
(7 years, 8 months ago)
Commons ChamberI have explained to the House what happened and what the view is inside Government about the tax locks that we put in place. The hon. Gentleman is entitled to his opinion and he has expressed it.
I thank the Chancellor for his change of mind today. I urge him to carry on with some parts of the proposal, namely considering how we can ensure that the very highest earners, who tend to be self-employed, pay the right amount of tax, including partners in limited liability partnerships, who have the advantages of limited liability and of not paying national insurance.
My hon. Friend is right. It is a relatively small group, but about 90,000 self-employed people, many of them on very high earnings, benefit enormously from the way the system operates, particularly those who use limited liability partnerships. That is an essential part of the review of this issue in the round that we have to do.
(9 years, 10 months ago)
Commons ChamberThe hon. Gentleman seems to be suggesting that, as I said to the hon. Member for Edinburgh East (Sheila Gilmore) earlier, rather than using the consolidated criteria, we should develop a set of arms trade sanctions based on human rights performance. That is a radical suggestion and he is perfectly entitled to make it. The Government have no plans at present to go down that route.
3. What recent discussions he has had with his EU counterparts on reforming the EU to make it more competitive and accountable.
I have already visited 18 member states to discuss EU reform with my counterparts—most recently from Bulgaria, Romania and Croatia last week. Leaders across Europe agree that the EU needs to change. We are setting out the case for Britain’s view of the reforms required to make the EU fit for purpose in the 21st century. We have already made some progress: the June European Council agreed that EU reform was necessary and that the UK’s concerns should be addressed.
Mr Juncker yesterday appeared to rule out reform of freedom of movement as a way of reinvigorating our loveless marriage with the EU. Is there more hope from my right hon. Friend’s discussions with his counterparts that real reform of that can be achieved?
As the Prime Minister has set out on more than one occasion, we have increasing agreement across the European Union that we need to address abuse of free movement. Free movement to work is one of the principles of the European Union; free movement to freeload is not one of the principles of the European Union. Britain is not the only country affected by this problem and not the only country determined to address it.
T6. I am grateful for the earlier confirmation about the EU referendum if the Prime Minister remains the Prime Minister. Is there now an update on what the date of that referendum might be? Will it be earlier than 2017?
The Government’s position is that we will negotiate a reform package in the European Union—that will take some time—and then present it to the British people before the end of 2017 for their endorsement or otherwise. The British people will have the last say, unlike under the position of the Labour party, which is apparently that the European Union is perfect. Let us remember that the Leader of the Opposition said on the BBC that, in his opinion, Brussels does not have too much power, and therefore he does not have a European Union reform policy.
(13 years, 2 months ago)
Commons ChamberThe only other option available to the Secretary of State—I have to repeat myself again—would have been to cancel the Thameslink procurement completely and abandon the project. That power exists, but there is no power to alter the terms under which the competition is conducted once it has begun. That was made very clear by the representative from the European Commission and by the academic lawyers who gave evidence to the Select Committee.
Will the Secretary of State confirm that he will look to include socio-economic conditions in future procurement contracts and to give them sufficient weighting that the full economic impact of the contract can be taken into account?
The Prime Minister has agreed that the growth review should include a review of public procurement in the UK, and that work is now under way. We will look at what happens in other EU countries that are similarly constrained by EU procurement rules, and we will look at best procurement practice in large commercial companies to maintain long-term best value. We will certainly look at the opportunities provided by, and the appropriateness of, including socio-economic criteria, where appropriate.