Financial Assistance to Ukraine Bill

Phil Brickell Excerpts

Committee of the whole House
Wednesday 18th December 2024 Commons Chamber

[Stephen Gethins]

I would endorse the comments that have been made by colleagues. I think we sometimes need a little bit of perspective. In my constituency and in Tayside and Fife—the hon. Member for Cowdenbeath and Kirkcaldy (Melanie Ward) will be well aware of this—we have defensive barriers that were built during the second world war. The barriers in Tayside and Fife were built by Polish and, as they now are, Ukrainian soldiers who were standing up to tyranny. They built those defences to defend Scotland, and to defend the rest of the United Kingdom as well. They knew that there is no point in standing up to tyranny just in one corner of Europe; we have to do it throughout Europe. Those defences stand as a testament to the time when the Poles and the Ukrainians stood by us. Now is the time for us to once again stand by them.

I echo the remarks made by the hon. Member for Livingston (Gregor Poynton) about the way that Ukrainians have come to our homes and have enriched our society and our communities. I know they are keen to go home, but we can just give them that little bit of certainty. I also pay tribute to the hon. Member for Tunbridge Wells (Mike Martin) for his work and that of others on frozen assets. That speaks to the enormous challenge that Ukraine is facing, and that the rest of us are therefore facing at exactly the same time.

I acknowledge the work of the Minister in seeking to untangle those assets. I welcome his remarks—I really do—but some of the administrative burdens are as nothing compared with the burdens that have been carried by Ukrainian troops on the frontline in Kursk, Donbas and elsewhere, and compared with the challenge we will see from conflict and a refugee crisis should that front collapse at any point. I know he gets that, and there is agreement across the Chamber on it, but I think it is worth underlining.

I also welcome the remarks made by the Conservative shadow Minister, the hon. Member for North Bedfordshire (Richard Fuller), about engaging with our European partners on this, because that is pivotal. I fully endorse his remark about where a number of these funds are being kept, and about how if one moves, we all need to move. There is unanimity in this Committee, and I have been struck by the outstanding work done by a number of colleagues, That unanimity and resolve reflect the magnitude of the challenge that each and every one of us faces if we do not stand up to tyranny and secure the future of Europe right now.

[Phil Brickell (Bolton West) (Lab)]

I wholeheartedly welcome this Bill, which allows us, alongside our G7 partners, to provide £38.6 billion of loans to Ukraine to be repaid using profits from sanctioned Russian assets, and I wholly support this Government’s commitment to stand unequivocally with Ukraine. I believe that Putin and his cronies should be the ones who pay for the damage they have caused across Ukraine. To that end, while this is a very welcome first step, does the Minister agree that we should be doing all we can within the rule of law to seize frozen Russian assets, both private and state, and use them to finance the reconstruction of Ukraine?

Moreover, may I gently suggest to the Minister that we must secure a swift resolution on the proceeds of the sale of Chelsea football club? In March 2022, Roman Abramovich pledged to sell Chelsea football club and donate the £2.5 billion—nearly seven times the value of the humanitarian assistance that the UK has pledged since the invasion in 2022—to support victims of the war in Ukraine. However, as I think all Members know, two years on from the sale, this has hit a stalemate, and regrettably no money has been delivered to the victims of the conflict.

With that in mind, the Government should commit to a number of recommendations that the campaign group Redress has worked on, and all of which I support. The first recommendation is taking steps to ensure that the proceeds of the sale of Chelsea football club are swiftly transferred to a charitable foundation in the UK, or adopting other existing mechanisms set up to deliver reparations to victims of the conflict. The second is ensuring that a substantial percentage of the funds is used for reparations for victims of the conflict, particularly victims of gross violations of international human rights and humanitarian, such as survivors of conflict-related sexual violence. The third recommendation is to engage Ukrainian civil society, victims and survivors in guiding the repurposing of those funds. The fourth and final recommendation is to establish a working group between the Government, civil society and survivors to ensure that funds are distributed in an effective and timely manner.

I very much welcome the substantial progress that the Government have made in the past few months in standing shoulder to shoulder with the Ukrainian people, including the recent announcement of a new anti-corruption champion, the further designation of vessels in the Russian shadow fleet and increasing collaboration across Government to tackle Putin’s war economy, bearing down on both the Kremlin and the wider network of cronies who enable his unlawful and persistent invasion of Ukraine. As my hon. Friend the Member for Leeds Central and Headingley (Alex Sobel) said, the Bill is an important step, and I welcome further initiatives to support the Ukrainian people as they continue their struggle to protect their sovereignty and territorial integrity in the face of Putin’s unlawful invasion.

[David Taylor (Hemel Hempstead) (Lab)]

It is a pleasure to follow my hon. Friend the Member for Bolton West (Phil Brickell). He has demonstrated why he will be such a valuable addition to the Foreign Affairs Committee, and I congratulate him on his election to it. I associate myself with his comments and those of other Members. We often find ourselves disagreeing over the smallest of details, so I am proud that we can all come together on an issue of such magnitude in unity with the people of Ukraine. Long may that cross-party support continue.

Earlier this year, as some Members may know, I had the privilege of visiting Ukraine. I went over with an Estonian charity, driving a couple of military pick-up trucks over from the UK as part of a much larger convoy that went into Kyiv. Those vehicles were handed over to the Ukrainian soldiers, and it brought home that there was not only support and solidarity in this country for Ukraine, but solidarity across the whole of Europe. That is why we are coming together on the measures in this Bill. Hopefully we will have an opportunity to go again, and I associate myself with the comments of my hon. Friend the Member for Leeds Central and Headingley (Alex Sobel). We were both on a call earlier, and I know that he and other Members have also made trips to Ukraine and been part of aid convoys to help people, and long may that continue.

This Bill is another tool in the arsenal when it comes to fighting one of the world’s greatest tyrants. Ukraine’s fight against Russian tyranny is not just for Ukraine’s sovereignty, but for the freedom and security of the whole of Europe. One striking thing in making that journey is realising just how flat Europe is. I know that seems a silly point, but it brings home that there is nothing stopping Putin at the borders of Ukraine if we do not stand up against him now. The fact that another of the world’s tyrants, Assad, is now cowering in Moscow demonstrates the importance of curtailing Russia’s aggression.

I am proud that this Government and the Government before have stood foursquare behind Ukraine. As other Members have said, the Bill will land a deafening blow on Putin’s war machine and unlock a £2.26 billion contribution from the UK to the extraordinary revenue acceleration scheme, which crucially will not be paid by Ukraine or by British taxpayers. It comes from dodgy cash from profits owned by sanctioned Russian assets held in the EU.

I associate myself with the comments of my hon. Friend the Member for Livingston (Gregor Poynton), who listed the various ways in which the previous Government and the current Government have supported Ukraine. Long may that continue. It is so important that we continue to stand four-square behind Ukraine for as long as it takes. I urge the Committee to do all in our power to ensure that the Bill receives Royal Assent as urgently as is feasible, especially as we approach winter, when the battle conditions will become even tougher. Finally, I use this opportunity to pay tribute to the Ukrainian forces fighting on the frontline, the British troops involved in training and equipping them and all those showing resilience in the face of Putin’s illegal war.

Finance Bill

Phil Brickell Excerpts

2nd reading
Wednesday 27th November 2024 Commons Chamber

[Mel Stride]

Madam Deputy Speaker, I will of course be guided by you on that matter. On the hon. Gentleman’s point, there is no doubt that, as we went into the last general election, the analysis of the manifestos of the three major parties showed that Labour’s manifesto would have by far the greatest increase on the tax burden. What Labour has done is to break its manifesto and go still further to take us, as the OBR has said, to what will be the highest tax burden in the history of our country. It is as simple as that.

[Phil Brickell (Bolton West) (Lab)]

I thank the right hon. Member for giving way. I did want to indulge him, but as he has now mentioned the OBR three times during the course of his speech, I wonder whether he would share with the House what conversations he had with former Prime Minister Liz Truss about respecting the OBR before she crashed the economy and sent inflation to 11%?

[Mel Stride]

As Chair of the Treasury Committee at the time, I had quite a lot to say about it, and I would point the hon. Gentleman to the public record in that regard.

Let me return to Labour’s claims of a vast £22 billion black hole, which one senses can even be seen from the moon. When the OBR looked at this matter, it concluded that the fiscal pressure was less than half that figure. It also made the point that, had it been known at that time, there would have been discussions between Treasury officials and the OBR, and that number might well have been smaller still. And it is equally the case that Governments manage down in-year fiscal pressures as a matter of course. To use another astronomer’s analogy, this is not so much a black hole as a red dwarf. [Interruption.] Or a red herring—even better. This is about not just misleading the British people, but economic incompetence.

The Government have set great store by growth. They say that they will generate the fastest consistently, sustainably growing economy in the G7—I see Labour Members nodding their heads. How is that going? Our friends at the OBR clearly forecast a lower level of growth following the Budget than they had forecast based on our Budget the preceding spring. That is a direct consequence of the kind of growth-destroying policies in which the Government are engaged. What happened when the Office for National Statistics came out with its figures recently for the third quarter of this year? [Interruption.]

--- Later in debate ---

[Phil Brickell (Bolton West) (Lab)]

It is a pleasure to speak in this debate on the first Labour Finance Bill in 14 years, and an even greater pleasure to respond to the very first Budget delivered by a female Chancellor. It is also an honour to speak on Lancashire Day, and I would like to put on record my congratulations to all my constituents in Bolton West and further afield who are celebrating this important day.

As others have done, I congratulate the Chancellor and thank her for blazing a trail for girls in my constituency to follow. In response to the remarks from the shadow Chancellor, the right hon. Member for Central Devon (Mel Stride), I would say that having spent 14 years working in FTSE 100 companies, I believe that the measures in the Bill will be a turning point for our country. They are the first step in fixing the foundations of a broken economy after 14 long years of economic vandalism by the Conservative party.

Let me be clear: the Labour Government inherited a difficult financial situation, with debt above 90% of GDP, millions of pounds of public money wasted during the pandemic, including via contracts awarded through the VIP fast line, inflation at 11%, and a cost of living crisis that bore down not just on the most vulnerable in my constituency, but on working families, young people and many businesses. That is the economic inheritance bequeathed by Conservative Members, and we should take no lessons from them on how to manage the public finances. To that end, I very much welcome the measures in the Bill.

[Graham Stuart]

To take the hon. Gentleman back just a few months, he may remember that inflation was at 2% and down at target, and the level of employment was up by 4 million people on where it was in 2010. It would be fair for the hon. Gentleman, who is new to the House, to want to give a balanced picture, and he may want to reflect on those 4 million additional jobs, the fact that inflation was down, and the fact that the UK was the fastest growing economy in the first quarter in the entire G7.

[Phil Brickell]

I thank the right hon. Member for his contribution, but I will return to the point I mentioned earlier about inflation at 11%. Frankly, the work was not done by the previous Government to mitigate that.

I very much welcome measures in the Bill that will increase stamp duty on those who own a second home. The blight of second home ownership in certain parts of our country has destroyed the housing market for local people, massively inflating prices and denying those otherwise invested in the local area the ability to put down roots. I am pleased to see the Chancellor delivering on our election promise to scrap the non-dom loophole, which has been abused for far too long by those who wish to enjoy all the privileges of life in this country without paying into the system. I applaud the Chancellor’s commitment to delivering fairness into the tax system through the Budget and the Bill.

In the light of the debate we have been having in the country at large over the past few weeks, I wish briefly to focus my comments on three key topics, which I hope the Government will soon revisit at some juncture during this Parliament. The first topic, tax justice, has been overlooked for far too long. According to His Majesty’s Revenue and Customs, the tax gap—the difference between what it should collect annually and what it actually collects—is almost £40 billion. Let me repeat that figure—forty thousand million pounds. Closing that gap by just 20% could pay for 60,000 nurses, 40,000 teachers, and 40,000 police officers. Imagine the transformative impact that could have on our public services, on education, on health, and on tackling crime. Simply put, working people in Bolton West are expected to pay the taxes they owe, so why should big multinationals and the super-rich be able to avoid contributing their fair share?

The renewed focus on tax avoidance and evasion in the Budget is much needed, but we sometimes have to spend money to make money. We all know that tough decisions about public finances have to be made, but that does not have to come at the expense of boosting enforcement through our public bodies, including HMRC, which should be self-funding, with a greater proportion of cash raised from fines, asset seizure and the like returned to the relevant agencies. Our enforcement agencies work incredibly hard to claw back billions of pounds that are lost every year to economic crime in the UK, but they do not have the resources to protect us from all manner of crimes from fraud to money laundering and tax evasion. It should be criminals who are made to pay, not the hard-working taxpayer, and for me, that would be a sensible way to both combat economic crime and bolster our public finances.

We already know that every pound invested in the Serious Fraud Office returns three pounds to the Treasury—a 317% return on its budget—while every pound spent on the National Crime Agency’s international corruption unit results in £21 of illicit wealth frozen. As it happens, research published this month by Spotlight on Corruption—I hope the Minister will take note of this—found that just 17.6% of the £4 billion generated for the Government by law enforcement agencies and anti-money laundering supervisors between 2017 and 2024 was reinvested in those agencies or in crime reduction and community projects. If just 50% of those enforcement receipts had been reinvested, economic crime regulation and enforcement would have received an extra £233 million a year—nearly double the annual investment underpinning the 2023 to 2026 economic crime plan—at no cost to the taxpayer but with potentially substantial rewards.

The second area of focus that I would like the Government to attend to during this Parliament is council tax. For almost three decades, successive Governments have sat on their hands when it comes to reforming the levy, which is regressive and disproportionately targets the wealth of lower-income families and the young, as well as affecting local authorities. Bolton council finds that it does not provide an adequate funding base to provide critical services for my constituents. Last year, a modest property in Hartlepool worth £150,000 would have been taxed at over 1% of its value, while the owner of an £8 million mansion in Westminster would have seen a bill equivalent to just 0.02%.

The Fairer Share campaign has called for a proportional property tax, which would see homeowners pay a flat rate based on current and annually updated valuations, not the absurdly outdated 1991 numbers. It calculates that that would put an average of £600 into the pockets of households in Bolton West and leave 96% of people in my constituency better off. Indeed, in total, Fairer Share reckons that that reform could save households outside central London and the south-east £6.5 billion a year, helping to level up communities and genuinely boost local economies.

Finally, I would very much like to see the spending commitment to 2.5% of GDP on defence reached as soon as fiscally possible. I welcome the Government’s commitment to that effect. The increase of £2.9 billion for defence already announced by the Government is indeed welcome. We must continue to invest in defence to ensure that the UK will have the capacity to keep us safe in what is becoming an increasingly dangerous world.

This Finance Bill demonstrates that after 14 years of dither and delay, the Labour Government are taking the difficult decisions head on. With the measures announced last month by the Chancellor, I am confident that my constituents across Bolton West will be able to realise their full potential and that together we can build the healthier, more prosperous society that I want to see, with tax justice at its heart and those with the broadest shoulders paying their fair share to fix the crises in our schools, our hospitals and our prisons.