Points of Order

Paula Sherriff Excerpts

Thursday 8th December 2016 Commons Chamber

[Mr Speaker]

Notwithstanding the right hon. Gentleman’s desire to invest me with great wisdom and powers in these matters, I am not sure that I am best placed to advise him on this. He is a former Deputy Leader of the House and he will be well aware of the upcoming debate on matters to be raised before the Adjournment, to which he may wish to contribute, although he might be perturbed by the absence of a responsible departmental Minister to give him a substantive reply. If he wants substantively to raise this issue and to obtain a reply, an Adjournment debate of his own might be his best salvation. I have a hunch that he will shortly be beetling across to the Table Office to make such an application, and he might find that his application is successful.

[Paula Sherriff (Dewsbury) (Lab)]

On a point of order, Mr Speaker.

[Mr Speaker]

The hon. Lady is in a state of some perturbation, and she did give me notice of her point of order, so let us hear it.

--- Later in debate ---

[Paula Sherriff]

Thank you, Mr Speaker. You have ruled on a number of occasions that, as a courtesy to the House, Members should inform one another when they are visiting another Member’s constituency on official business. I discovered last week that the Minister for Security, the hon. Member for Wyre and Preston North (Mr Wallace), had visited my constituency in his ministerial capacity. I discovered this when reading an article that was later published in my local newspaper. I subsequently raised the lack of notification with his office, which told me that it did not regard this obligation as applying to Ministers. This is particularly disappointing, given that I have often raised the serious issues that were the subject of his visit, and I would have welcomed the opportunity to discuss them with him prior to and during his visit. I am sure that I do not need to refer you to paragraph 10.9 of the ministerial code, Mr Speaker, but I ask you to clarify that this convention does indeed apply to Ministers and advise me of what recourse a Member has when the ministerial code is broken. What advice could you offer to the Minister of State and his office on this matter? Is there any further training or guidance that could be given to Ministers regarding their obligations to this House?

[Mr Speaker]

I am grateful to the hon. Lady for her point of order, and I can offer her some comfort in the matter. The short answer is that the obligation most certainly does apply to Ministers, and I am frankly staggered to hear it suggested—

Concentrix

Paula Sherriff Excerpts

Wednesday 26th October 2016 Commons Chamber

[Mhairi Black]

Another interesting point is that, when the Work and Pensions Committee looked into the matter, we discovered that Concentrix had subcontractors —three, I believe—but it was not allowed to go into any detail about who they were or what their methods were. I hope that, at some point, the Government will answer those questions.

Like the constituents of many other Members here, all the constituents I dealt with did not discover that their tax credits had been stopped until they went to collect them from the bank and discovered that there was nothing. When I started to look into the matter, I realised that this is truly the most ridiculous level of incompetence that I have ever heard of. People were accused of being in relationships with dead tenants 70 years their senior. They were accused of being in relationships with some of their own children. In my constituency, Scottish flat numbers seemed to be a major issue for Concentrix because it could not get its head around the fact that flat 1/1 and 1/2 were across the landing from each other and were not the same house.

The best one, though, has to be the case of RS McColl. To provide a bit of perspective, RS McColl is a corner shop that is as common in Scotland as WH Smith is in England, yet people were being accused of living with this mysterious Mr McColl because their flat was above an RS McColl shop. At no point did anyone in Concentrix or HMRC think, “Wait a minute. This Casanova is getting about a bit.” This would be funny—until we remember that we are talking about people’s livelihoods and their survival.

As a member of the Work and Pensions Committee, I took part in the evidence session where we heard from claimants who had had their tax credits stopped. This is where we have to remember the human costs. We first heard from a woman called Marie, a mother of two who went six weeks with no support. She did not discover that her benefits had been stopped until she went to the bank. She said that she genuinely could not fill her cupboards with any food and she spoke of the shame of having to take her kids to a food bank and having to rely on the charity of others to be able to eat.

A woman called Sarah had no hand and suffered chronic pain every day of her life. She had two young kids, who were both under the age of five. She spent a combined total of 19 hours on the phone waiting for someone from Concentrix to answer. When she finally did get through to someone, the person at the other end of the phone just kept saying, “I don’t know; sorry about that. You need to phone back and try to get someone else.” She was asked to write a letter. She explained she could not write due to her disability, only to be told, “Well, sorry, you’ll just need to find someone else to write it”. At that point, that woman broke down in tears in front of the Committee. She was overwhelmed with emotion when she spoke about the fact that she had to look at her kids knowing that she did not know where the next meal was coming from.

[Paula Sherriff (Dewsbury) (Lab)]

Does the hon. Lady share my frustration about the fact that a constituent of mine who was down to her last £5 was told to send documents to Concentrix by recorded delivery? She then had to decide whether to feed her child or to send those documents. I am sure that the hon. Lady will agree that that is absolutely horrific.

[Mhairi Black]

It is actually completely disgusting for this to be happening under the watch of Government. It is also worth remembering that, when we talk about these horrendous individual cases, they are not unfortunate or rare examples—it is happening throughout the UK. Whoever made the music that is played when people are put on hold by Concentrix must be making a fortune, because my entire office can whistle it off the top of their heads, we were kept on hold for so long—and that was on the MPs’ hotline. The fact that people who do not have access to that hotline are sometimes having to spend up to 90 minutes on the phone is ridiculous.

Concentrix: Tax Credit Claimants

Paula Sherriff Excerpts

Tuesday 18th October 2016 Westminster Hall

[Fiona Mactaggart]

The hon. Gentleman is right that we should stop such contracts, but we also need to find out the extent to which there has been a failure of policy underlying the Concentrix contract. I agree that the very nature of the contract—having a private company asking for those details—was inappropriate. So was the payment-by-results aspect, for example, and the fact that when the company was under pressure there was no way of bringing in civil servants to help by answering the telephone and so on. Such problems are inherent in that kind of contract, but some of the difficulties must have been created by the way the Treasury and HMRC operated. They provided the company with totally flimsy evidence and suggested it should be investigated. In effect, they ran a campaign against parents who were doing the terribly difficult job of bringing children up on their own. We should be ashamed of ourselves for targeting that group of people, who are resilient but in some ways vulnerable. The job of broader society is to help them in their task of bringing up the next generation.

Many claimants received a letter requiring council tax records, a year’s worth of bank statements, pay slips, childcare costs, divorce papers and household bills. Many people, as I would have done, treated such requests from a private company as probably a phishing exercise by a fraudster. Those people discovered within 30 days that their conclusion was an expensive mistake: their tax credits were stopped. All my constituents who had their tax credits stopped eventually had them restored.

I stress that it happened eventually. It was often after hours on the telephone and the intervention of my staff. Those hours on mobile phones cost an enormous amount for some of these people, who at the time had no money to speak of apart from the meagre wages they earned from their part-time jobs.

[Paula Sherriff (Dewsbury) (Lab)]

I thank my right hon. Friend for securing this important debate. My constituent’s tax credits were stopped erroneously. She was down to her last £5 and was told to send in documents by recorded delivery. She had to decide whether to feed her children or send the documents. The Government really must rethink their policy and respond to such people, so that we know it will never happen again.

[Fiona Mactaggart]

The problem is that the Minister and his civil servants cannot imagine what it is like for someone to have to choose between feeding their son or daughter and posting an important letter that will get next month’s money in. They cannot imagine a parent having so little money that that is the choice they face. When people’s tax credits were stopped, they were eventually restored. Although they can get additional bank charges and so on paid back—I have managed that on behalf of constituents—they often cannot redeem their credit history, which makes the rest of their life more expensive, so there are serious long-term consequences.

--- Later in debate ---

[Paula Sherriff (Dewsbury) (Lab)]

I, too, have been inundated with calls from desperate constituents who have had their tax credits stopped owing to accusations that they are living with another person. So far, every single one of the cases investigated has been proved false. The undue stress and pressure placed on parents is beyond belief, and the Government must take responsibility. I thank the few Government Members who have turned up to listen to the debate.

One woman had food in her freezer to feed her child, but the money on her electricity meter ran out, and the food defrosted and had to be thrown away. Another said that she was not bothered about feeding herself, but it broke her heart to see her children go hungry. People have been seriously let down by the failings of Concentrix, a company appointed by and acting under the watch of this Government. All the people affected deserve answers as to how and why such a situation was allowed to happen.

We are starting to see a slow trickle of reinstated payments, but in some cases the back pay has not been paid, the bills that were building up are turning into court summonses, and debts are growing. Unfortunately, people are having to turn to payday loans and loan sharks. The dilemma my constituents face is whether they ask for another mandatory reconsideration to investigate the missing back pay and risk having their payments stopped again. I simply cannot express my feelings of anger towards those responsible for this monumental failure and for the damage done to thousands of needy families across the country. It is not good enough simply to say that the contract will not be renewed. We need an urgent investigation into how this happened in the first place. Furthermore, we need to know that all the cases still open will be resolved urgently, and we need complete assurance that this will never be allowed to happen again.

Finance Bill

Paula Sherriff Excerpts

Monday 5th September 2016 Commons Chamber

Brought up, and read the First time.

[Paula Sherriff (Dewsbury) (Lab)]

I beg to move, That the clause be read a Second time.

[Mr Speaker]

With this it will be convenient to discuss the following:

Amendment 140, in clause 125, page 205, line 32, leave out from “after” to end of subsection and insert “1 January 2017”.

Amendment 142, page 205, line 32, leave out “such” and insert

“1 April 2017, or on any prior”.

Amendment 144, page 205, line 32, leave out “such” and insert

“1 April 2018, or on any prior”.

Government amendment 161.

[Paula Sherriff]

It is a pleasure to open this debate by speaking to new clause 4 and amendments 140 and 144. I thank both Front-Bench teams for ensuring that we have time to debate the issue today. It is, perhaps, appropriate that a female Financial Secretary now sits on the Government Front Bench and has the chance to settle the matter.

It has taken us quite some time to get here. It was in January 2001 that the lower rate of VAT on women’s sanitary products was applied. For that we owe thanks to many women MPs of that era, as well as to the then Minister, Dawn Primarolo, who now sits in the other place. During the passage of the Finance Bill last year, I was proud to lead a cross-party group of today’s women MPs, including many on the Labour Benches, and others such as the hon. Members for Glasgow Central (Alison Thewliss) and for Berwick-upon-Tweed (Mrs Trevelyan), in demanding that we finish the job, which led the Government finally to address the issue at European level. We should pay particular tribute to the many people outside this place who campaigned so hard on this very important issue, not least Laura Coryton, whose petition attracted hundreds of thousands of signatures.

Following that pressure, the Government accepted another cross-party amendment, this time in the Budget resolutions, for what I understand was the first time in history, and the then Prime Minister persuaded the European Council to issue a communiqué on the matter. The European Commission VAT action plan has now been issued and the Commission intends to table a proposal by the end of this year, though of course the UK has since voted to leave the European Union—off the back of a promise by Vote Leave that such a result would allow us to abolish the tampon tax outside the EU. I gently suggest to Government Members, especially those who campaigned for Brexit, that voting for the amendment would honour that promise, and their constituents might reasonably question why they would oppose it.

Whether we are in or out of the EU, there should be no barrier to ending the tax. There are promises both from this Government and from the winning referendum campaign to do so. The explanatory notes for clause 125, written before the referendum vote, state:

“This clause reduces the VAT rate on the supply of women’s sanitary products from 5% to zero”.

but I hope the Minister will acknowledge that that is not really the case as the Bill stands. The clause does not zero-rate women’s sanitary products; it just provides enabling powers for the Treasury to do so, if it chooses, and at a time of its choosing. That is why I originally tabled what is now amendment 142 in Committee, when my hon. Friend the Member for Salford and Eccles (Rebecca Long Bailey) spoke to it. The then Financial Secretary—now the Chief Secretary—responded that he was

“confident that by 1 April there should be no reason why the measure is not in place.”––[Official Report, Finance Public Bill Committee, 7 July 2016; c. 146.]

He said that the Government would therefore consider accepting the amendment. Since then, the hon. Member for Christchurch (Mr Chope) has tabled his own amendment, which would implement a zero rate from 1 January next year. It is fair to say that there is a cross-party desire to see the promise honoured as quickly as possible.

I acknowledge, however, that the complications of negotiating our exit may make the next tax year, let alone calendar year, a tight deadline for the Government, despite the previous Minister’s confidence. For that reason, I have also tabled amendment 144, which provides for a later deadline of 1 April 2018—in other words, in time for the tax year 2018-19. I believe that this is a very reasonable deadline. By that point, our exit negotiations will be well under way, and the European Commission aims to have reformed its own laws to allow a zero rate by 2018. I reiterate the point made by the Minister in Committee when he said he was confident that by 1 April there should be no reason why this measure is not in place. Amendment 144 gives the Government a full additional year beyond a date that they were confident they could meet. However, should there be any delay, the timescale also allows the Government nearly two years to amend their legislation accordingly with the new dates. The Vote Leave alternative Queen’s Speech included an entire Bill specifically to abolish the tampon tax, but a whole Bill is not necessary given the amendments that we have today, which would allow the Chancellor simply to propose a later deadline in next year’s Finance Bill. The important point, however, is that Ministers should have to explain to this House why any delay was necessary, and we would need to vote to allow that.

The Government have tabled an alternative amendment of their own—amendment 161. While that seems to set 1 April 2017 as a default deadline, it makes it subject to

“the earliest date that may be appointed consistently with the United Kingdom’s EU obligations.”

In short, 1 April next year is not really the deadline at all, and instead we are subject to the Government’s own interpretations of our EU obligations. I must also question the exact wording of the amendment. It does not refer to our obligations as a member of the EU, but just to our “EU obligations”. That seems to leave open the possibility that we might agree to keep a minimum rate of VAT as part of our exit negotiations. When I challenged the Secretary of State for Exiting the European Union on that earlier today, he certainly did not rule it out. Instead, he reflected that ability to set a zero rate was just one reason why people may have voted to leave, but did not actually pledge to deliver it. I am therefore not convinced that this amendment takes us much beyond the existing clause. Unless the Minister has some very strong arguments to address these points, I will press amendment 144, at least, to a vote.

That brings me to new clause 4, which touches on another issue that it would be helpful if the Minister addressed—the women’s charities that have received funding from the tampon tax fund. This was quite understandably criticised by a lot of feminists, as it used a tax on women to pay for support that they often needed as a result of male violence. None the less, it was still better than nothing. Now it is set to be abolished. Can the Minister give us guarantees of stable future funding for these vital services? As she will have gathered from the wording of the new clause, I am making the point that the Treasury will have raised a considerable amount from women historically from the point in 2001 when the Government first made the decision in principle to apply the lowest rate available.

I would like to press Ministers again on one last issue—that the benefit of zero rates is not always passed on in full by the companies that set the prices. When the Labour Government cut the rate to 5%, they committed to monitoring prices to ensure that the cut benefited women rather than just boosting the bottom lines of the businesses involved. I want to know whether this Government will take similar action. As the Minister may be aware, I have negotiated a deal with the leading retailers whereby they will pass on the cut in full. I hope that she will join me in urging these businesses to do that and to sign up to the agreement. Similarly, she will have heard the appalling reports of women turning up at food banks seeking sanitary protection products because they cannot afford them due to welfare cuts or poverty pay. I have reached an agreement with a major retailer that it will provide some free sanitary protection to food banks within my constituency. Can the Government offer any further such support to other constituencies?

I hope that today we can meet the promises made by European leaders, this Government, and indeed the winning referendum campaign. Anything less is simply not good enough for women. I hope that the Minister will accept at least one of my amendments and make it clear that the days of the tampon tax are nearly over for good.

--- Later in debate ---

The Government will introduce a zero rate of VAT for women’s sanitary products as soon as possible, but we cannot set a specific date because we are obliged by EU law. The hon. Member for Dewsbury can chalk up getting a commitment on the face of the Bill to do this at the first opportunity after April 2017, when we are legally able to do so, as a very significant victory. I therefore call on the whole House to support the Government’s amendment and to celebrate the great work being done through the money raised by the tampon tax fund and the wonderful organisations it supports.

[Paula Sherriff]

I beg to ask leave to withdraw the motion.

Clause, by leave, withdrawn.

Clause 125

VAT: Women’s Sanitary Products

Amendment proposed: 144, page 205, line 32, leave out “such” and insert

“1 April 2018, or on any prior”.—(Paula Sherriff.)

Finance (No. 2) Bill

Paula Sherriff Excerpts

Monday 11th April 2016 Commons Chamber

[Mr Gauke]

Pricing is essentially a matter for the producers, retailers and customers. We would certainly expect the reduction to be passed on, and I have no doubt that considerable attention will be given to what happens to the pricing of sanitary products after the VAT reduction, and there will be pressure on retailers to pass on the benefits to customers. We do not have a position—we do not have the capability to direct and order people—and we do not have a prices policy as such, but we expect that the reductions will be passed on to customers.

[Paula Sherriff (Dewsbury) (Lab)]

I thank the Minister for being accommodating. I have written to leading retailers and manufacturers of female sanitary products asking to meet them to discuss this. I would be grateful if he offered his support for that course of action. If the Government are unwilling to do that, we may need to consider adding a provision to the Bill.

[Mr Gauke]

I very much support the hon. Lady’s cause, and she supports my cause that manufacturers and retailers should pass on the VAT abolition to customers, and we expect to see that happen.

I should like to turn to the way in which the Bill will support British business and ensure that our employees have the skills they need. The Government committed in the Budget to put stability first, because it gives businesses the certainty that they need to invest, grow and employ people. The core of our support for British business is low taxes, and the Budget provides the biggest ever cut in business rates, worth over £6.7 billion over the next five years. Measures in the Bill will do more. First, we will again cut the main rate of corporation tax and reduce it to 17% in 2020, ensuring that we have the lowest corporation tax in the G20. By the end of this Parliament, corporation tax cuts delivered since 2010 will save businesses almost £15 billion a year, providing an important boost for our international competitiveness.

Our labour market is delivering the highest employment in our history, but we need to ensure that it has the right skills. The Bill introduces an apprenticeship levy of 0.5% of an employer’s pay bill, where it exceeds £3 million, from April 2017. That will deliver 3 million apprenticeship starts by 2010. By 2019-20, Government spending on apprenticeships in cash terms will be double the level of spending in 2010-11. We will put funding in the hands of employers to ensure that it delivers the training that they need by ring-fencing apprenticeship funding in England.

In the last Parliament, we took important steps to help entrepreneurs who start and grow businesses. We also want to ensure that they can access the investment that they need as they grow, and to that end we are legislating to reduce the higher rate of capital gains tax from 28% to 20%, and the basic rate from 18% to 10% from April 2016. Gains on residential property and the receipt of carried interest will remain unchanged. Those changes will create an incentive to invest in shares over property, and will help British companies to access the finance that they need to expand and create more jobs.

Finally, the recent Budget took necessary and radical action to support the oil and gas tax regime through difficult times. The Bill will legislate for a key part of this strategy in permanently zero-rating petroleum revenue tax. From April 2016, petroleum revenue tax will be reduced from 35% to 0%. We believe that wherever possible, we should use the tax system to stimulate growth and investment, whatever the sector.

Budget Resolutions and Economic Situation

Paula Sherriff Excerpts

Tuesday 22nd March 2016 Commons Chamber

[Paula Sherriff (Dewsbury) (Lab)]

I rise to speak to amendment (a), tabled in my name and those of the hon. Members for Glasgow Central (Alison Thewliss), for Berwick-upon-Tweed (Mrs Trevelyan) and for Leeds North West (Greg Mulholland). I served on the Finance Bill Committee with the hon. Member for Glasgow Central last year, and it was during that Bill’s passage that she and I first tabled amendments on this issue. I hope that we will finally see them reflected in legislation this year.

I thank the hon. Member for Berwick-upon-Tweed, who, as a Government Back Bencher, co-sponsored the amendment, and my right hon. and hon. Friends who have given their support, but it is the campaigning work of so many others outside this Chamber that has driven us forward, including more than 300,000 people who signed Laura Coryton’s petition on the issue. The campaign against the tampon tax will serve as an inspiration. It is an example of how grassroots campaigns and Back-Bench Members can make a positive change at the highest level.

It is one of the absurdities of our tax regime that tampons and sanitary towels are treated as luxuries, when periods are simply a fact of life for women. Last week, we heard appalling reports from food banks about how women, who were unable to afford tampons, were resorting to using newspapers and socks.

[Mrs Miller]

Will the hon. Lady join me in thanking the Financial Secretary, who is in his place, for all his hard work in taking the fight directly to the European Union and in negotiating the change that the Government have put on the table today?

[Paula Sherriff]

I do thank the Financial Secretary in the same way that I thank everybody who has supported this long-standing campaign.

It cannot be acceptable that women are having to use socks and newspapers as a substitute for sanitary protection. I hope that, as well as cutting prices across the board, we can ensure that all women have access to the protection that they need.

This campaign is not just about money. It is about time that we removed the stigma attached to the basic facts of women’s lives. The Prime Minister said yesterday that he will always remember explaining this issue to the 27 Heads of Government at the European Council. The fact that they had to address this issue directly is itself a great step forward for women.

I am glad that the Government have now taken on board the campaign’s message. It makes me the first Opposition Back-Bench MP successfully to move an amendment to a Budget resolution. If nothing else, I will at least achieve lasting fame as a parliamentary pub quiz answer. That does not mean that our work is done here. There are a couple of outstanding issues that I hope the Minister can address.

Most pressingly, there is the question over what will happen to those women’s charities that have benefited from the tampon tax fund since the autumn statement back in November. I hope the Minister will confirm today that even after the tax is scrapped he will continue to provide the financial support that they so desperately need.

We will also need to take the final step by legislating for the measure the Finance Bill, and at European level. It would be fitting if this House could pass those amendments before the referendum in June, and I hope that the Minister can commit to that timetable today. On the latter point, I hope that he will be back at the Dispatch Box tomorrow with the expected announcement of the EU VAT action plan.

There is also a challenge to ensure that women get the full benefit of the tax cut, and that the cut does not simply result in increased profits for the manufacturers and retailers of sanitary products. I am writing to them on that matter myself, and I encourage the Government to join me. Those companies might be able to provide part of the answer to the issue of future funding for women’s charities. I hope that it would not be too much of a test of our powers of persuasion to encourage them to advertise women’s charities on their packaging, and make donations themselves. Women have no choice but to pay companies for their products, and I hope that those companies will make the choice to help pay for our services.

[Alison Thewliss (Glasgow Central) (SNP)]

I thank my honourable sister for giving way on this point. I thank her for her support and for the work that we have done on this. I fully support what she is suggesting about the charitable giving from the sale of packets of tampons and sanitary towels. Does she accept that the definition of sanitary products needs to be widened slightly to cover items such as breast pads for mothers who breast feed, maternity pads for women who have just had children and incontinence pads, which are not always available to people free of VAT?

[Paula Sherriff]

I thank the hon. Lady for her intervention, and I very much look forward to campaigning with her on the issues that she has just mentioned.

This evening we have the opportunity to put right an historical injustice by making clear our intent to abolish VAT on female sanitary products. The amendment allows us to do just that, and I hope that the whole House will support it.

Oral Answers to Questions

Paula Sherriff Excerpts

Tuesday 1st March 2016 Commons Chamber

[Mr Osborne]

I did see that report yesterday. We all have to accept that the retail industry faces an enormous amount of change, particularly because of what is happening on the internet and the way in which people are shopping online. I personally think that one of the biggest changes we can make right now is to allow shops to open on a Sunday, which is the biggest single day for internet shopping. We cannot say that we want to protect our high street shops while in the same breath saying that they cannot open on one day every week, given that the internet is open 24 hours a day. We shall have a chance to vote on that question next week.

[Paula Sherriff (Dewsbury) (Lab)]

T7. The Chancellor’s statement on ECOFIN referred to the UK seeking a multilateral agreement on making the details of the tax paid by companies publicly available on a country by country basis. Will he tell us what measures he will take to achieve that, and on what timetable? As a first step, will he admit that his Google tax deal was not a great success, and does he accept the Public Accounts Committee’s call for full transparency?

[Mr Osborne]

The Public Accounts Committee has investigated HMRC deals in the past and it is of course welcome to do so again. It gave HMRC a clean bill of health on its approach to these things. We are introducing country by country reporting, and the regulations came into force last week. That is happening only because this Prime Minister put the matter on the agenda in this country and internationally, and I have been calling, at the EU and at the G20, for an international agreement on public reporting so that we can know what companies are paying in different jurisdictions rather than just reading reports about it.

Short Money

Paula Sherriff Excerpts

Tuesday 23rd February 2016 Commons Chamber

[Paula Sherriff (Dewsbury) (Lab)]

Will the Minister confirm that this will have to be done by a resolution of the whole House? Does he have a date in mind for such a resolution?

[John Penrose]

The usual parliamentary process will be followed, so there will have to be a proposal. The statutory instrument for positive development grants has already been laid, and that can be either passed or prayed against in the usual way. The hon. Lady is right to say that, when we come up with proposals for Short money, they will have to be passed by a resolution of this House.

Finance Bill

Paula Sherriff Excerpts

Monday 26th October 2015 Commons Chamber

[Paula Sherriff (Dewsbury) (Lab)]

New clause 7 is tabled in my name and supported both by my hon. Friends and by a number of Members on the Government Benches.

It is time to end the tampon tax once and for all, and we have the chance to take a step towards achieving that today. It is absurd that in Britain tampons and sanitary towels are taxed as luxuries, not essentials, and not treated as a public service activity or medical provision by EU law. Almost 250,000 people from across the country have signed up to a call for that to change, and it is about time they were heard in Westminster and Brussels. Quite simply, a tax system that lets someone dine on crocodile steak on their private jet without paying a penny, when we cannot survive a period without the Treasury taxing us for it, cannot be a fair one.

That is why the Minister’s predecessor, Dawn Primarolo, urged on by many of my predecessors on these Benches, reduced the rate to 5% under a previous Labour Government, and it is why Laura Coryton and other feminist campaigners are running a campaign to finish the job with a zero rate now. Hon. Members can still sign up at change.org/EndTamponTax.

Periods are a fact of life and it is not as though women have a choice. Many were shocked to see Kiran Ghandi run the London marathon without a tampon to highlight the fact that too many women around the world do not have access to sanitary products. But that is the point—this is a basic matter of biology and it is time to end the taboo.

We can buy tampons in this country, but we are taxed for doing so. This is an issue for all women, but, as with so many things, it hits the poorest the hardest. Imagine being homeless when that time of the month comes. Think about what it is like to face a period without even having a bathroom.

[Liz McInnes (Heywood and Middleton) (Lab)]

My hon. Friend refers to the plight of the homeless. As I am sure she is aware, homeless shelters can request free condoms from the NHS, but not free sanitary products. Does she agree that it really is time we dealt with that indignity, because homeless women face enough challenges already?

[Paula Sherriff]

I completely agree that homeless women face enough challenges without the added burden of periods without sanitary products.

Some great work is being done by food banks, and student unions, such as those at Leeds University and Sheffield University, have started selling sanitary products at cost price in order to avoid VAT, but this is an issue where the Government need to lead from the front. The Minister told us in Committee that he was sympathetic to this, but we do not need to be patronised with tea, sympathy and platitudes; we demand action. He told us that his hands were tied and that change would require difficult negotiations and EU reform, but the Prime Minister has just promised us that he will undertake just such negotiations, and that he will be able to deliver just such EU reforms. This issue, which affects the majority of people across Europe, could hardly be more difficult to achieve than the rest of his demands.

Frankly, VAT on tampons is the vagina added tax. It is a tax on women, pure and simple. Therefore, instead of going to Brussels to water down our protections at work, the Prime Minister has an opportunity to deliver a victory for women across the continent. This issue transcends party politics, and I am pleased that the amendment has received cross-party support, from other parties on the Opposition Benches and from some Members on the Government Benches. I sincerely hope that Members on both sides of the House will support taking steps to axe the tampon tax tonight.

[Sir William Cash]

The hon. Lady refers to people across Europe, no doubt meaning the European Union. The only problem is that if we cannot get unanimity among all member states, we will not get any change at all. From that point of view, the most important thing is to fight and fight again to ensure that we get what we want, but also to guarantee that we bring back the powers to this House.

[Paula Sherriff]

I am not sure whether the hon. Gentleman is suggesting that we should do absolutely nothing about this huge inequality that affects more than half the population. We have an opportunity to take a significant step forward for women and families this evening. We turned our clocks back on Sunday. Let us not turn them back even further tonight, period.

[Mrs Main]

I am pleased to have an opportunity to discuss this matter, because we need to examine why we cannot do something about it—if we really cannot. I know that I would not be in your good books, Mr Deputy Speaker, if I brought in some props to illustrate my argument, so I will have to ask you to use your imagination, which I am sure is prodigious. Imagine that I have laid out on the Bench beside me a selection of products, including pantyliners, maternity pads, mild bladder weakness pads and incontinence pads. They would all look fairly similar and would be made from similar materials, but some would have a designed difference. In other words, they would be taxed.

I call that tax a femi-tax. I know that there has been a lot of alliteration, with references to a “tampon tax”, but it is somewhat perverse that in a selection of products that look pretty similar, and that are perhaps interchangeable, some should incur tax simply because they are associated with a woman’s bodily function. To me that seems unreasonable and totally illogical.

When I looked into the matter, I found that incontinence aids do not attract tax because they come under a different tax regime. It is assumed that they are intended for use by people who have illnesses, who are elderly or who are disabled. However, those of us who watch too much television—I am probably in that category—will have seen plenty of adverts for products for those “Oops” moments, as they have been described, and they do not show geriatric, disabled or elderly people; they show sassy young ladies and women of a certain age who are still attractive to members of the opposite sex. Therefore, let us assume that this is some sort of contrivance. Those products, should a woman choose to use them to ensure that she does not have an embarrassing “Oops” moment, do not attract VAT. I cannot see why the products a woman might choose to use, even if they might also be used by the elderly, the infirm and the disabled, are not regarded for tax purposes as the same as any other product she might choose to use. That is the illogicality we must tackle today.

I understand the alliteration of the “tampon tax”, but I think that phrase is misleading. If those products were laid out, most people would struggle to identify which ones incur VAT. This contrivance, because this only affects a woman’s bodily function, whether she has had a baby or her normal monthly period, means that it is that function that is taxed. I think that it is unreasonable that we cannot at least appear to deal with the matter.

I want this to be discussed tonight because I want to understand why we cannot deal with the matter. I would like to say that we could go to Europe and make all sorts of bluster and noise, but I would like the Minister to tell us tonight whether he agrees about that illogicality and whether he agrees that this is indeed a femi-tax—a tax on women’s bodily functions, but not on other bodily functions. If he has sympathy with that view, I would like him to explain to the public why we cannot look at these products and say, “They all look pretty similar and they all have similar functions in absorbing fluids, so why has someone somewhere decided that we cannot choose to make them all exempt?” It seems ridiculous that a woman could buy an “Oops” moment product—I do not want to advertise any particular brand—and use it for sanitary protection and that that would be cheaper. It might not be quite as effective, but it would be cheaper. I think that it is absolutely ridiculous that a similar-looking product intended for personal hygiene, such as a pantyliner, would be taxed differently. I do not understand it.

I would like the Minister to explain why we as a country would want to persist with that illogicality in taxation. If he has a reason—I suspect that my hon. Friend the Member for Stone (Sir William Cash) has hinted at this, but I want to hear it from the Minister—that is associated with us being bossed around and told what to do by a conglomeration of countries that I have never voted for, then we need to start raising these issues. If Europe insists on taxing women through a femi-tax, I would like them to explain why.

--- Later in debate ---

[Mr Gauke]

I do not want to conceal from the House the fact that we do not have flexibility in these circumstances. Nor do I want to conceal the challenge that we would face in reaching agreement on this. Other member states take a different approach. As the hon. Member for Walthamstow has pointed out, it was striking that the vote in the French Assembly just a couple of weeks ago on an attempt to move the rate down from 20% to 5.5% was defeated. I do not wish to pretend that this would be a mere formality; other member states do take a different approach to this issue.

[Paula Sherriff]

If the Minister is pledging to start negotiations, will he also give us a clear commitment to come back and update the House, and if so, will he tell us exactly when he will do so?

[Mr Gauke]

I would certainly be happy to update the House on any developments at any stage, as and when they might occur. I am happy to give the hon. Lady that reassurance.

Tax Credits

Paula Sherriff Excerpts

Tuesday 20th October 2015 Commons Chamber

[Paula Sherriff (Dewsbury) (Lab)]

I look at this debate as someone who, perhaps unlike some Conservative Members who have spoken, did an ordinary job on an ordinary wage before I came to this House. Many of the people I worked alongside in the NHS relied on tax credits to make work pay and now find themselves caught in a pincer between the Government’s pay cuts and the work penalty. More than 13,000 children in my constituency are in families supported by tax credits—over two thirds of all families with children in Dewsbury and Mirfield. Literally thousands of the people I represent are now fearful for their future.

[Clive Lewis (Norwich South) (Lab)]

My hon. Friend is not alone. In my constituency, 4,000 working parents will be affected by the working tax credit cuts, as will 6,700 children. This is, in effect, a work penalty. I ask her to support me in telling Conservative Members, “You are not the party of working people, and shame on you.”

[Paula Sherriff]

I thank my hon. Friend for his intervention. I absolutely agree that this is clearly a work penalty— to think that the Conservatives wanted to rebrand themselves as the party of working people, but instead we have this penalty.

A cleaner in my constituency with one child earning just over £13,000 a year will now lose nearly £2,000 of it. That, quite simply, is the reality of these cuts. As for the so-called national living wage, there is one simple problem: it is not actually enough to live on. That is why we had tax credits in the first place, and why the Living Wage Foundation takes account of them when it calculates the real living wage.

If the Conservatives were serious about an economy based on fair pay for decent work, they would be doing the opposite of what they propose in the Trade Union Bill and making sure that working people genuinely get their share of the wealth they create. The real winners will be the Tories’ paymasters in big businesses, because the most profitable companies in Britain will get the cut in corporation tax—not to mention the millionaires. We know what they really think of ordinary working people in Britain because the Minister for Employment said it herself in a book called “Britannia Unchained”:

“the British are among the worst idlers in the world”

who

“prefer a lie-in to hard work.”

If they thought that these cuts were so necessary and so reasonable, why did they not mention them before the election? Instead, we saw exactly the opposite, with the Prime Minister categorically denying on national television that any such changes would be made. We used to say, “You can’t trust the Tories with the NHS”; now we know that you cannot trust them, full stop.