Tax Avoidance (HSBC)

Paul Burstow Excerpts

Monday 9th February 2015 Commons Chamber

[Mr Gauke]

The Swiss deal is on course to bring in £1.2 billion that would not otherwise have been brought in. Since the agreement was signed, we have made much further progress, with 90 countries, including Switzerland, signing up to the automatic exchange of information, which means that the era of bank secrecy is over and that it will not be possible to hide assets in the way that it was in the past. That is a consequence of the UK’s leadership on this front.

[Paul Burstow (Sutton and Cheam) (LD)]

While we are pursuing those who have benefited from the HSBC tax evasion scheme, what is being done to pursue those who designed and offered the scheme in the first place, and what questions are being asked of the auditors of the bank, such as why they do not appear to have blown the whistle on the scheme?

[Mr Gauke]

One challenge in this case is that the behaviour was carried out by a Swiss subsidiary in Switzerland. It is for the prosecuting authorities in this country and HMRC to decide whether any action can be taken against that HSBC entity. To make a wider point, the Government have taken a lot of action to strengthen the powers against those who promote tax avoidance schemes. Indeed, we are implementing reforms to tighten those powers, making it much harder for people to promote tax avoidance schemes.

Amendment of the Law

Paul Burstow Excerpts

Thursday 20th March 2014 Commons Chamber

[Mr David Heath (Somerton and Frome) (LD)]

In contrast to the economic amblyopia of the hon. Member for Coventry North West (Mr Robinson), I honestly believe that there are many things to welcome in this Budget. Chief among them is the greatly improved economic situation in which this country now finds itself. I must say that I had my doubts that we would achieve our employment objectives, but we have, and in full measure. Unemployment in my constituency is now at 1.6%, compared with 17% in the mid-1980s. That shows just how far we have gone. I am also enormously encouraged by the 1.5 million new apprenticeships that have been put in place by this Government, because that seems to be at the core of our economic recovery.

There is a strange process in this House by which the Budget is separated from the autumn statement, which is not entirely logical. I find it difficult to talk about the money-raising capacity of the Government without mentioning where that money will be spent. May I give due notice that when we come to the autumn statement, I will expect to see clear commitments to flood alleviation schemes, such as the sluice on the River Parrett, and the long-term changes for sustainable maintenance of our flood systems. I will expect to see the A303 explicitly mentioned as part of the capital programme. I will also expect to see the long-promised improvements in our rail infrastructure in the west country, including the opening of Somerton and Langport stations, which will offer long-term economic benefits to our area.

Let me deal with what is in Budget. I wholeheartedly welcome the increase in the tax threshold, which is a commitment that I made before the election. Not only does that take millions of people out of tax altogether, but it represents, by 2015, an £800 tax cut for people on modest incomes in my constituency and across the country. That is enormously important. From a parochial point of view, I would have welcomed the freeze in cider tax, except that I felt it was slightly undermined by the cut in beer duty, and I felt that perhaps cider drinkers did not have parity with beer drinkers. None the less, the freeze is welcome.

I welcome the changes announced by the Minister of State, Department for Work and Pensions, my hon. Friend the Member for Thornbury and Yate (Steve Webb). We have campaigned for many years for this straitjacket of the annuity-buying system to be released.

I welcome the industrial strategy that the Business Secretary has developed over recent years. I am talking about the encouragement to invest and the support for exports. One sector in which I have had direct involvement is the food and drink sector. That is the biggest manufacturing industry in this country, with a £90 billion turnover and 400,000 workers engaged in it. Exports form a key part of the sector, providing £9.3 billion, which is a 5% increase year on year. None the less, we still have far more to do. There are still many opportunities that need to be realised. The fact that 90% of small and medium-sized enterprises that produce food and drink still do not export suggests that we need to do an awful lot more in the way of encouragement.

[Paul Burstow (Sutton and Cheam) (LD)]

My hon. Friend is absolutely right that investment and exporting are key to our growth. Does he therefore welcome the other announcement that was made yesterday, which is the doubling of the tax allowance when it comes to capital investment, from £250,000 to £500,000?

[Mr Heath]

Absolutely. We are getting an industrial strategy that makes sense for this country. The point was made that we need to offer direct encouragement to firms to export, but what is lacking is aspiration. What we need to do is increase the level of aspiration of many of our smaller firms.

There has been mention of the national minimum wage and the difficulties caused by not uprating it. May I remind the House that there are still abusive employers who do not even pay the national minimum wage and who are not investigated and prosecuted? There are also many abusive contractual relationships, especially in some sectors. That is not to damn every employer in those sectors; a lot of them are very good and conscientious employers. However, it worries me that in the catering and entertainment, care and construction sectors there are still bad employers who need to be brought to book. We already have a model to deal with them. It has been shown to be successful and I used to use it when I worked with the Gangmasters Licensing Authority. I do not believe that the GLA can simply expand into other sectors; that would be beyond its capacity. It also runs the risk of breaking an organisation that is doing a very good job in its sector. We need to replicate that in the other sectors because, for me, avoiding abusive relationships between employers and employees is one of the key issues that remains. Some of the virtually indentured labour that goes on is linked to our work on modern-day slavery. I believe that the Government can and should take action to end it once and for all.

--- Later in debate ---

[Paul Burstow (Sutton and Cheam) (LD)]

I wish to reflect on one or two significant changes that this Budget and the Government’s long-term strategy are delivering, and to look at how they impact on the businesses and the people in my constituency.

First, I welcome the further steps that have been taken on tax-free personal allowances. Some 39,000 people in my constituency will benefit from the £800 tax cut. In addition, my local council has frozen the council tax for the fifth consecutive year, which is good news for local families. None the less, we still need to go further. In due course, I hope we will be able to align the tax-free personal allowance with the national minimum wage, so that no one on the national minimum wage pays income tax.

Secondly, I want to welcome the pension changes that were announced yesterday. The Minister of State, Department for Work and Pensions, my hon. Friend the Member for Thornbury and Yate (Steve Webb) has his fingerprints all over those proposals. Pensioner security has been his goal for a very long time. Linking the basic pension to rises in prices or earnings or 2.5% whichever is the higher has delivered an extra £650 to 14,879 pensioners in my constituency. That feature of our pension system should be made permanent. It would help to guarantee the foundation on which individual retirement savings are built. I also welcome what my hon. Friend said in response to me earlier on when he made his statement.

That leads me to the radical change to the way in which people take their pensions. The change is the most radical for nearly a century, giving people greater choice on how to access their defined contribution pension savings. The current arrangements are complicated and leave pensioners feeling short-changed. By lifting restrictions on individuals who have made the right choice to save can empower people to plan for their later life. The changes reflect the longevity revolution that is taking place in our country. As life spans increase and healthy life expectancy rises, we need our pension system to adapt to support people in their third age.

The quality of the guidance available to people when taking decisions will be critical. The fact that this guidance will be free and face to face is good news. I hope Ministers will take the opportunity to join up later life planning. The way in which long-term care is paid for in this country introduces a duty to provide information and advice, including financial advice. It must surely make sense to ensure that people are presented with a rounded picture of their later life needs. We all want to plan for our third age of active retirement, but impartial guidance should also help us to plan for our fourth age of frailty, when we sometimes need support and care. I welcome what my hon. Friend said on that, too.

It is great news that the UK is forecast to grow faster than any other G7 economy in the first half of this year. Sustainable growth will come from a more balanced economy. We want to prosper from what we make and from our ability to translate scientific discovery into jobs and growth for UK plc.

In my constituency, we already have a world leader in the life sciences—the Institute of Cancer Research. The institute discovers more new cancer drugs than any other academic centre in the world, as well as generating more invention income per capita than any other UK higher education institution. My council’s Successful Sutton growth plan, which has already attracted £319 million of inward investment and created many more new jobs, will form the heart of an extraordinary life science campus. What makes that plan so exciting is that the institute shares its Sutton home with the Royal Marsden, which is one of the world’s best cancer hospitals. That ability to translate discoveries from the lab bench to the bedside and to operate a close collaboration between clinicians and scientists provides a huge competitive advantage.

[Mr Heath]

I am interested to hear what my right hon. Friend says about the investment in his constituency. It is exactly what the Science and Technology Committee, on which I serve, is looking for in terms of the correlation between original research and market-ready bioscience and high-tech solutions, which we can use both in this country and abroad.

[Paul Burstow]

My hon. Friend is absolutely right. The two organisations in Sutton have an exceptional working relationship, which makes the site unique in the UK and up there with the best organisations in the world, such as MD Anderson in Houston and Sloan-Kettering in New York. My right hon. Friend the Business Secretary is aware of these emerging plans, and I know that my right hon. Friend the Chief Secretary to the Treasury was very impressed when he visited the Institute of Cancer Research in January. The potential from the site is huge. There is space for life science businesses to cluster; 10,000 direct jobs; a £350 million contribution to the economy; and increased research income. These are huge opportunities and I hope that the Business Secretary and his colleagues in the Department will ensure that his officials fully engage with them so that we can realise the full potential of the project.

Let me end my speech by making some comments about housing. What was announced in the Budget was welcome, but I think it missed an essential ingredient—a focus on the fastest-growing source of demand for housing, people over the age of 65. There is a chronic shortage of the right housing options for people in the second half of their lives. Too often, moves in later life come as a result of a crisis rather than an attempt to fulfil aspirations for a better quality of life. The Help to Buy scheme and the rules governing the community infrastructure levy need to be reviewed to help grow the market for later life housing. The impact on the housing supply chain could be profound, freeing family homes, creating jobs in renovation and helping people to make the most of their third age.

In conclusion, there is more to be done, but the Government have ensured that growth is back, employment is rising, unemployment is falling and inflation is under control. The Government are doing the right thing and providing a sound platform for this country to move forward and that is why I support the Budget.

Investing in Britain’s Future

Paul Burstow Excerpts

Thursday 27th June 2013 Commons Chamber

[Mr Speaker]

My sense is that there is nothing unparliamentary about the use of the word “curmudgeon”. It is very much a matter of taste.

[Paul Burstow (Sutton and Cheam) (LD)]

I congratulate the Government on the announcements about social care spending and the health service. I draw my right hon. Friend’s attention to a capital project that will serve my constituency: the commitment to an investment of £219 million in St Helier hospital. However, that project has been stuck in the mud for the past three years because local NHS managers have been blocking its progress. Will he intervene with Ministers at the Department of Health to unblock that project and provide the much-needed investment?

[Danny Alexander]

I agree with the first part of what my right hon. Friend said. The massive reforms to health and social care that we announced yesterday are hugely important for the future of this country. I am proud to be part of a Government who are taking those matters forward. Much of the credit for that must go to him for the work that he did in government and for his campaigning outside government. On the latter point, I will certainly raise that matter again with Ministers at the Department of Health.

Summer Adjournment

Paul Burstow Excerpts

Tuesday 19th July 2011 Commons Chamber

[The Minister of State, Department of Health (Paul Burstow)]

I should like to start by responding to the hon. Member for Preston (Mark Hendrick), who talked about the impact of shisha water pipes. I entirely agree with his comments about the need to dispel the myths surrounding them. They do endanger health, and it is not the case that they are less harmful than smoking cigarettes. The flavours might hide it, but they can still kill people. The hon. Gentleman was right to bring this matter to the House’s attention today. Water pipe use might actually increase exposure to carcinogens by smokers and those exposed to second-hand smoke. The evidence is clear that water pipe usage can increase the risk of cancers of the lung, mouth and bladder. It is also associated with markers of cardiovascular and respiratory diseases and an increased risk of mouth and gum disease.

A number of local councils are already doing work in this area, not least the London borough of Tower Hamlets and Coventry city council, which are implementing enforcement strategies that include information and advice on the health hazards from smoking water pipes. We believe that, as local authorities take on their new public health responsibilities over the next few years in conjunction with Public Health England, they will be well placed to improve awareness of the risks of these practices, and I commend the hon. Gentleman for bringing the matter to the House.

My hon. Friend the Member for South West Devon (Mr Streeter) raised two issues. He highlighted the work of the Hannah Rogers Trust on speech and language therapy, and I can tell him that Health Ministers have been working closely with their Education colleagues on the production of the Green Paper on special educational needs that was published earlier this year. We are now looking at the results of the consultation. He included a well-delivered joke from Ben in his speech, which demonstrated compellingly the importance of ensuring that people have access to appropriate communications technologies, so that they can fully express their views, wishes and feelings and live full lives.

My hon. Friend talked about the differential fee levels that are paid—on the basis, it seems, of ownership rather than anything else. The Government have set their face against that when it comes to the NHS. My hon. Friend rightly raised some issues that need to be looked at. Particularly when local authorities are facing resource difficulties, they need to look challengingly at how they use resources to ensure that they deliver quality, while also delivering value for money for the taxpayer. In that regard, we will certainly look at such issues as part of the work we are doing on the White Paper.

That brings me to the hon. Member for Manchester Central (Tony Lloyd) and his questions about Southern Cross. Here, too, we have work in hand around the need to reform social care in England to make sure that it is genuinely fit for the 21st century. Earlier today, I laid before Parliament a written ministerial statement to update hon. Members on further developments in the restructuring of Southern Cross. The Government’s overriding concern is and remains the welfare and safety of the 31,000 residents in Southern Cross care homes. Whatever the outcomes of the restructuring processes to which the hon. Gentleman referred, no one will find themselves homeless or without care. We expect Southern Cross, its landlords and lenders to continue to work together to secure a consensual, solvent restructuring of the business that meets their collective responsibilities to secure the welfare and care of residents.

My officials continue to maintain close contact with Southern Cross, its senior management, lenders and landlords. We continue to stress to them the need for timely announcements of the sort we saw from NHP yesterday about who will be taking on the operation of homes as we go forward. We need the necessary work to be done by the Care Quality Commission to ensure that the operators meet the necessary standards to be able to operate these homes in the first place. I entirely understand the concerns of hon. Members of all parties about this matter. That is why I have undertaken to keep Members informed while we are in recess. I will do just that as matters progress.

My hon. Friend the Member for Mid Norfolk (George Freeman) raised issues about the NHS’s contribution to economic growth. As he rightly says, the NHS has huge potential for supporting UK innovation and research. We are increasing investment in health research by more than 8% in real terms over the next four years. That includes the £775 million that we are providing to promote translational research and development through biomedical research centres and units, and an additional £220 million for the construction of the Francis Crick Institute. My hon. Friend is right to say that we are, in a way, passing from the era of industrialised medicine into one of personalised medicine; that will certainly transform these things.

The Health and Social Care Bill, which has been the subject of much of my life over the past few months, includes measures to place duties on commissioners to promote and drive forward innovation and research. We think that that is a crucial way of unlocking the potential of the NHS to secure for patients the full benefit of research in that regard.

The hon. Member for Worsley and Eccles South (Barbara Keeley) talked about social care funding and resource allocation in the NHS. She will know that in last year’s spending review, the Government identified the need to support the fragile social care system that they inherited. That is why by 2014-15 an additional £2 billion of support will be going into social care. In fact, over the next four years, £7.2 billion extra—over and above what was committed previously—is going into social care.

We recognise that local authorities have to make tough decisions, but some of them ought to be about ensuring real efficiency in the way social care services are delivered. That means looking at things like telecare and reablement, and looking critically, as my hon. Friend the Member for South West Devon said, at the way local authorities procure the services they provide for people in need. I think I need to write to the hon. Lady in more detail about the questions she posed about the working of the fair shares toolkit in active case management and the Little Hulton walk-in centre. I will write to her about that.

The hon. Member for Kingswood (Chris Skidmore) raised issues about foreign nationals’ use of the NHS. While we have a clear entitlement to a free NHS based on current residency in the UK, it is not based on nationality. There are exemptions for some categories of visitor, which are set out in the arrangements that have been in place since the 1980s. I commend the hon. Gentleman's research, and, along with my ministerial colleagues, I look forward to seeing the results of his freedom of information requests. As he said, the Government announced back in March that we would conduct a fundamental review of current rules and practices. That work is just beginning, and I am sure that the hon. Gentleman will contribute to it.

The hon. Member for Blaenau Gwent (Nick Smith)—I apologise for my mispronunciation of his constituency—made a compelling case for the benefits of exercise. We know that the taking of more exercise is linked to a reduction in the risk factors connected with coronary heart disease, strokes, type 2 diabetes, cancer, obesity, musculoskeletal conditions, and much more besides. Some of the issues raised by the hon. Gentleman should be addressed to the devolved Administration in Cardiff, but the Government remain aware that a cross-Government approach is needed to issues that involve transport, planning and housing if we are to secure the public health dividends that we need to see.

My hon. Friend the Member for Mid Derbyshire (Pauline Latham) raised an important point. Notwithstanding the success of the cancer drugs fund, which has already delivered relief to 2,500 patients, it seems that the situation is different in her local strategic health authority in the east midlands. I will look into the matter carefully, and will seek explanations for the difference. I shall also want to be assured that these processes are genuinely transparent, so that justice is seen to be done and people can gain access to the benefits of the fund.

My hon. Friend the Member for Central Suffolk and North Ipswich (Dr Poulter) talked about mental health. In February, my right hon. Friend the Deputy Prime Minister and I launched “No health without mental health”, a cross-Government strategy. I believe that our “life course” approach sends the clear and powerful message that prevention and early intervention are key mental health priorities for the Government. The strategy also recognises the critical interdependencies between physical and mental health. The bulk of the strategy will have to be delivered by experts on the ground working with service users and their families and carers, but the Government are absolutely committed to integrated services. On the day on which I have launched the consultation on our new suicide prevention strategy, I should make clear the need for us to ensure that we no longer have a health service that patches people up physically while leaving them struggling mentally.

We must tackle stigma. Given that one in four of us in this country suffer from mental health problems, this is not about “them and us”; it is about all of us. We need parity of esteem between physical and mental health services, and that is a task for commissioners as well as those who provide services.

My hon. Friend the Member for Weaver Vale (Graham Evans) raised the subject of the independent treatment centre in his constituency, and the consultation that is currently under way. I will certainly undertake to look at the report of that consultation. My hon. Friend rightly raised some of the downsides of “one size fits all” contracting, which cost the taxpayer large sums under the last Administration without delivering any benefit for patients.

This has been a good debate. I will look again at the contributions made by all Members, and if I have not responded to all their points, I will write to individual Members about those points. Let me end by wishing all Members and Officers of the House a healthy, productive and refreshing recess.

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[Madam Deputy Speaker (Dawn Primarolo)]

That is not a point of order for the Chair. However, the hon. Lady has taken the opportunity to make the point directly to the Minister. I am sure that he has heard what she has said, and that he fully intends to reply to the points that have not been dealt with today.

[Paul Burstow]

I entirely take the hon. Lady’s point. I will certainly ensure that I respond to the questions that I did not cover in the debate, and I will ask colleagues in the Department what has happened to the replies to the hon. Lady’s earlier questions.

[Madam Deputy Speaker]

I am grateful for the Minister’s assistance.



Communitites and local government