Northern Ireland Budget (Anticipation and Adjustments) Bill

Debate between Owen Smith and Nigel Mills

2nd reading: House of Commons & 3rd reading: House of Commons
Tuesday 20th March 2018 Commons Chamber

[Nigel Mills (Amber Valley) (Con)]

The Select Committee has met representatives of WAVE and looked at their proposals. Has the hon. Gentleman thought about how to design a pension that gave people who suffered mental health problems as a result of the troubles the right sort of compensation? I suspect that that might include far larger numbers than the 500 people and £4 million a year that he cites, but I cannot see how we could produce a scheme that did not help those people as well.

[Owen Smith]

I know from the hon. Gentleman’s time on the Select Committee that he is very familiar with this issue. He is absolutely right. I referred to the 500 seriously physically injured victims and survivors, and the £2 million to £3 million quantum that is the annual sum associated with their receiving some form of pension. He is also right that a further significant issue to be considered is the people who have been injured permanently and psychologically as a result of the troubles. No, I do not have an absolute idea about how this would be achieved. I have of course read the commission’s report on how it might be achieved, and other pieces of work have been done. That would need to be taken into account. I repeat, however, that time is passing for all the victims of the troubles, and time is the one thing they cannot afford. I therefore urge us all in this House to get past these difficulties and see a way clear to providing the resources that are needed.

Finance (No. 4) Bill

Debate between Owen Smith and Nigel Mills

Wednesday 18th April 2012 Commons Chamber

[Owen Smith]

I am grateful to you, Sir Roger, although I found that debate terribly entertaining. [Interruption.] Oh no, I am more than happy to talk about tax avoidance all evening, especially about the Swiss deal, which is particularly disgraceful. No doubt we will do that upstairs in Committee.

I return to the question of the bank levy and the bank bonuses tax and which was the most effective measure. It is clear that, as the OBR said, the bank bonus tax raised £3.5 billion in 2010, which is almost twice what the levy raised in 2011. Those are not disputable facts; they are there in black and white in the Red Book and the OBR’s analysis. Choosing not to reinstate our bank bonus tax represents an effective tax cut for the banks.

[Nigel Mills (Amber Valley) (Con)]

rose—

[Brandon Lewis]

rose—

--- Later in debate ---

[Owen Smith]

I would not dispute that for a moment. Many of the banks are under water and so will not end up paying tax for a significant period, but not all of them, and that is my point. Broadly speaking, the banks and financial services account for about 8% of corporation tax in this country. Overall, there will be a reduction to the Exchequer, through the cut in corporation tax to 22%, of about £5.5 billion per annum. That is leaving aside the CFC changes. On average, then, we would expect the financial services and banks to get about £450 million off their tax bills as a result of the Government’s changes. That is the point I am making. The question that needs to be asked in the round is what we are doing to tax corporations and tax our banks.

[Nigel Mills]

Does the hon. Gentleman agree that we need a predictable tax system, so that investors can understand what they will be expected to pay? When measures are described as “one-offs” or “temporary”, we ought to be able to rely on that, rather than allowing them to be permanent fixtures.

[Owen Smith]

By and large I would agree with the hon. Gentleman. Tax policy ought to be predictable. Indeed, the current Government deserve some credit for continuing with the trajectory set by the previous Government on tax policy planning and tax making, by seeking to consult significantly and publish things well in advance. [Laughter.] For some reason the Minister is chuckling. I would point to the introduction of the 50p rate, which was first mooted in 2009 and introduced in 2010, which was probably what led to all the forestalling. However, that approach is a good idea, by and large. We ought to consult carefully on tax policy, because as this Government are learning to their cost, so often there are unintended consequences of tax policy. I might highlight, for example, the simplification introduced so blithely by the Chancellor in his Budget speech, when in just one sentence he waved away Churchill’s special personal allowance for the elderly and introduced the granny tax. That was a simplification that seemed sensible at the time, but in hindsight it has had unintended consequences.

--- Later in debate ---

[Owen Smith]

I am grateful, Sir Roger. I am bringing my remarks to a conclusion.

The amendment we have tabled is very simple. It simply requires the Government to look at the possibility of reintroducing a payroll tax on the banks.

[Nigel Mills]

Will the hon. Gentleman give way?

[Owen Smith]

No.

We think that would generate significant revenues, which could be used to create youth jobs to tackle the scourge of youth unemployment in our country and to create new affordable homes. We want the Government to look at that; we want them to get their priorities right; we want them to undo some of the damage they have done in the last two years. That is why we will of course press the amendment to the vote when the appropriate moment comes.