Finance (No. 4) Bill

Debate between Owen Smith and Kelvin Hopkins

Wednesday 18th April 2012 Commons Chamber

[Owen Smith]

If Labour had won the election, it may have changed its view and continued the bank bonus tax. The Opposition certainly believe that Government ought to impose a bank bonus tax in addition to the current levy—[Interruption.] Well, the bonus tax was introduced for a one-off period, but I think a Labour Government would have continued it based on our priorities and values that we described in respect of the 50p rate. We would not have thought it right at this juncture, in a period of fiscal austerity, either to give a big benefit to the wealthiest individuals or to ask the wealthiest corporations to pay a lesser amount.

[Kelvin Hopkins (Luton North) (Lab)]

The hon. Member for Great Yarmouth (Brandon Lewis) implies that paying tax is voluntary, but surely it is compulsory in this country. It is just a question of ensuring that the people who owe tax pay it.

[Owen Smith]

The debate on the 50p rate was interesting in that it revealed the differing attitudes of Opposition Members and Government Members to paying taxation. From the way in which some Government Members responded to the debate, one could surmise that they are very comfortable with people finding every possible means, illicit or legal, to avoid tax. [Interruption.] Well, there was a clear implication from some hon. Members in the earlier debate that the boundaries and borders of the envelope can be pushed, as they were. In some respects, that argument was deployed to justify the cutting of the 50p rate, because so much money was, through fair means or foul, pulled forward into 2009 when it should have been taken in 2010.

--- Later in debate ---

[Owen Smith]

The hon. Gentleman ought to read some of the Budget documentation. The Government have not closed anything in respect of Switzerland; they have opened it up and continued to allow people to put money into Switzerland. They have asked them to acknowledge how much they have there and then charged them a lower rate of tax than they would have been charged had they kept their money in the UK. What is worse is that it runs fundamentally contrary to the European train of thought, established across Europe and supported by the previous Labour Government over their last five years, which is that we want more transparency, not less, in our tax affairs. Unfortunately, we will have less transparency as a result of his Government.

[Kelvin Hopkins]

I find it tiresome that while the overwhelming majority of my constituents, who are ordinary working people, pay tax through pay-as-you-earn and have no opportunity to evade or avoid, we spend countless hours debating the minority of rich people, defended by the Conservative party, and their tax affairs. I want the rich to pay their taxes in the same way as those on PAYE so that they do not escape paying one penny.

[Owen Smith]

rose—