Finance (No. 2) Bill

Debate between Priti Patel and Bob Stewart

2nd reading
Wednesday 29th March 2023 Commons Chamber

[Priti Patel (Witham) (Con)]

It is an honour to follow the hon. Member for Newcastle upon Tyne North (Catherine McKinnell), because I wholeheartedly support the principle of getting more parents into work and, importantly, we both became Members of Parliament at a similar time, when we both had small children. There is a clear understanding that the childcare system in this country has been dysfunctional and unaffordable for too long. I was a Minister in a Government who developed the policy of tax-free childcare, and we wanted to simplify it. I think she made some important references to simplification and making childcare much more accessible to and practical for parents—we need that.

I say that because our country and our economic prosperity are built not on the foundations of government, high taxes and regulations, but on the ingenuity of the human spirit and the British public going out to work and contributing. That is effectively what we need to be doing. Our economic strength comes from the entrepreneurial spirit of businesses—obviously, I say that as an Essex MP—and from the nation’s wealth creators: our army of hard-working businesses. I come from a small business background myself—people know that I have worked overseas and all the rest of it. That is what builds economic foundations and protects us, allowing us to weather economic hard times.

We must recognise, of course, that we have seen economic hard times—certainly in my decade in this place—and we are not out of the woods; we have high levels of inflation. We also have challenges in the banking system, which could have long-term repercussions. We want to get the economy growing, and for the Government to meet their pledge to grow the economy, create more better-paid jobs—we all believe in better-paid jobs—halve inflation and reduce the national debt, we need businesses such as those in Essex. My hon. Friend the Exchequer Secretary to the Treasury is a Suffolk MP, and I am adding the entrepreneurial eastern region. We have to give people the bandwidth to invest. We need them to feel confident about the strength of our economy and that businesses will do a great deal to invest.

Of course, Governments do not create jobs—we need to recognise that—but they can help to generate growth. That is why we need the right economic foundations, fiscal framework and supply-side reforms—about which we do not talk enough—to encourage free enterprise. So many of us in this place are old enough to remember that that was the approach that lifted our country out of the economic doldrums in the 1980s. As I said in the Budget debate, there are many positives in the Budget, but there is a strong sense among the business community that the Budget and the Bill could have gone further, and that we need to think about future-proofing where we as a country go on the economy and, as many of my hon. Friends have said, about addressing the high tax burden, which curtails our economic freedoms.

I could make many references to one great Conservative, the late Baroness Thatcher, who said:

“Our challenge is to create the kind of economic background which enables private initiative and private enterprise to flourish for the benefit of the consumer, employee, the pensioner, and society as a whole.”

For me, those are the basic tests by which we should judge a Budget and a Finance Bill. Do they support private investment and enterprise? Do they ensure that we are internationally competitive? Do they help households and businesses by giving them economic freedoms?

I will touch on some measures that have already been mentioned. On the rise in corporation tax, there are measures to provide more relief, which can be welcomed, but I do not believe in increasing taxes and then providing relief to compensate for them. Too many risks come with relief. It can create complexities in the tax system, and small businesses in Essex will have to employ armies of lawyers, tax accountants and specialists. I just disagree with that; I do not think it is right, as I said in the Budget debate. I believe that we need a simplified tax code underpinned by lower taxes. We have been talking about that for years in this House but we struggle to deliver it. Of course, businesses are frustrated by that because they are the ones that have to pay the costs of it. Entrepreneurs and small businesses are subject to more regulatory costs and more restrictions, which stifles innovation. We need to do much more in that space.

The OECD minimum rate of corporation tax is a hugely complex change to our tax system that has so far progressed with very limited scrutiny, I am afraid. Given the extent of the 159 clauses, that scrutiny may happen in Committee, as colleagues have said. I hope the Minister can assure me that the time allocated to those clauses in Committee will reflect their complexity, and that key sections will be considered by the whole House, because we are deeply concerned about the impact of the change on the UK’s economic future. I have concerns about the administrative costs of those measures for businesses. We need to look at the change in more detail, given that businesses are already paying above the 15% tax rate. That is of great concern.

[Bob Stewart]

Small businesses in my constituency are complaining hugely about the fact that they will have to employ more and more accountancy hours in order to do their work. It is a real problem because it costs them more and more money.

[Priti Patel]

My right hon. Friend is absolutely right, and that brings me to a point that I hope the Minister will seek to address. The Government’s impact assessment suggests that the costs could be around £13 million initially, and then an additional £8 million annually to maintain. This is a total underestimation. When the lawyers, tax accountants and everything else—the layer cake—is included, the cost will be phenomenal. For example, the insurance sector believes that its compliance costs will increase by a minimum of 20% to 25%. Others say the increase could be as high as 40%. These are business costs—I do not need to spell them out any further.

To quote the Government, the effectiveness of the policy

“depends on a high degree of consistency of the implementation in different jurisdictions”.

It has already been said this afternoon that although we are pressing on with implementation, other countries are not. As my hon. Friend the Member for South Dorset (Richard Drax) said, the EU has granted many member states the right to delay for up to six years. The US is not going to implement it at all. We know exactly what the White House and the US House Committee on Ways and Means have said. If the UK progresses ahead, how high a degree of consistency can we expect elsewhere? In America, the House Committee on Ways and Means is threatening retaliatory measures against any countries that attempt to collect additional taxes from US corporates. We need to understand the implications across Government, because this is about not just the Treasury but the Department for Business and Trade. What impact will the Bill have on the prospects of a UK-US trade deal?

Finally, we are legislating before a final international agreement has been reached. As we know, negotiations are ongoing in respect of several measures, not least the infamous international dispute resolution, which seems to have plagued most Government policy in many other areas. We are signing up to a deal when we do not know whether it will be so loosely policed that China and other countries can game it without thinking about the wider implications. I know that the Minister will pick up these points, and I thank the Front-Bench team and the Chancellor for their strong engagement on all these issues.

I wish briefly to touch on the point that has been made about the Office of Tax Simplification. Much more work needs to be done in this policy area. At the end of the day, it applies to issues such as personal taxation rates. We on this side of the House are Conservatives and believe in allowing people to keep more of what they earn, and we trust them to make more informed choices about how they spend their money. Notwithstanding not just this Finance Bill but previous ones, it is fair to say that since 2010 we have lifted many of the lowest-paid out of income tax by increasing the tax-free allowance to £12,570. We should be proud of that. It has doubled under us and, along with the introduction of the national living wage, we have helped those on low incomes, which is absolutely the right thing to do.

The previous Finance Act that we passed froze the tax-free allowances and respective tax bands until 2028. I want to see so much more done in this policy area to give people more freedoms and to let them keep more of the income they earn, rather than having the state continuously robbing Peter to pay Paul and then reallocating so much public money in difference schemes.

We now face a real problem with fiscal drag that we have to address. Middle-income earners have already faced the impact of fiscal drag, with little change in the 40% higher-rate threshold in recent years. We also know that in 1990-91 there were 1.7 million higher-rate income tax payers out of 26.1 million, which was less than 7% of all earners. Now there are 5.5 million higher-rate income tax payers out of 34 million, which is 16% of all earners. As Members can work out, over the past 30 years we have gone from one in every 14 income tax payers paying the higher rate to one in every six. That is very significant, so this is one area that I would say to the Government, to Treasury Ministers and to the Prime Minister has to be kept under review.

To conclude, I encourage Government Front Benchers to drive forward everything that will promote free enterprise and to look at good tax cuts that will really help people, including those who, quite frankly, are struggling: low-income earners in particular, but also small businesses around the country. This is not just about the large corporates, but those that employ people in our communities. Those businesses are the backbone of our communities and our societies, and if we do more of that, we will have stronger economic freedoms to grow our economy and make our country more prosperous again.

Foreign Interference: Intelligence and Security

Debate between Priti Patel and Bob Stewart

Monday 17th January 2022 Commons Chamber

[Priti Patel]

I thank the hon. Lady for making that important and powerful point. Of course racism and racist abuse against any community is abhorrent, and we have to work to stamp it out. She is right to highlight the fact that, throughout the coronavirus pandemic—this is a tragedy and awful to know—the south-east Asian community have been particularly vilified and subjected to racist abuse.

It is right that not just the Government but the Home Office, working with our community partners and the police, do everything possible to ensure that any racist incidents are dealt with in the right and proper way and that we give the right protective measures, awareness and support to members of that community.

[Bob Stewart (Beckenham) (Con)]

The granting of a parliamentary pass is a real privilege, and I think that all of us should take responsibility by helping the House authorities and the Security Service when we are looking at people for our own offices, because we have the right to nominate people. We bear responsibility for checking out these individuals. May I suggest, from my previous experience in the military, that one way of doing that is to make each and every one of us sit down with anyone who wants a pass or who comes into our office and jointly go through a detailed form, with very detailed questions, and jointly sign it?

[Priti Patel]

I return to my earlier comments about vetting and the support that is currently in place. We can work together to close down any issues of concern. For the assurance of not just all right hon. and hon. Members but the British public, who will no doubt be watching this debate and wondering how on earth any malign influence could enter the heart of our democracy, we will continue to work collectively to make sure we put all the protective measures in place.

Windrush Lessons Learned Review

Debate between Priti Patel and Bob Stewart

Tuesday 21st July 2020 Commons Chamber

[Priti Patel]

My hon Friend is absolutely right. I have spoken repeatedly—as has the Immigration Minister, my hon. Friend the Member for Torbay (Kevin Foster)—about not just welcoming the brightest and the best but being open and fair in terms of how we invite people over to our country, and about having a system that is fair in the way in which it will end discrimination between non-EU and EU countries. That is absolutely vital, as my hon. Friend will know, through the points-based system.

[Bob Stewart (Beckenham) (Con)]

I remind the House of how many members of the Windrush generation and their children joined the armed forces. I served with a great number of them and I thought they were superb. Will the Home Secretary endorse that comment?

[Priti Patel]

I absolutely will endorse that comment. I echo every word that my hon. Friend has just said.

Reading Terrorist Attack

Debate between Priti Patel and Bob Stewart

Monday 22nd June 2020 Commons Chamber

[Priti Patel]

On the specifics, I will consult the Ministry of Justice, which will know the details, and happily ask its officials to write to the hon. Lady.

[Bob Stewart (Beckenham) (Con)]

Out of the blue, with no intelligence or prior information, three terrorists once came to my house to kill me. They were stopped by my 11-year-old son, Alexander, in the front garden. They asked him if his daddy was home. I was home, but he felt something was wrong. By good luck and chance, they got into their car and disappeared and killed someone else—lucky for me, not them. My point is it is almost impossible for the police and the security services to identify people who decide on their own with a knife to go out and do great harm. That said, will my right hon. Friend commend the bystanders and policemen who, with huge courage, tackle these people, bring them down and prevent far more innocents from being killed?

[Priti Patel]

My hon. Friend is right. We saw at the weekend the unarmed police officer who apprehended the suspect, and we have seen it in many other cases. At such times, these individuals are the very best of us and will have done a great deal to keep other people protected and out of danger.

Public Order

Debate between Priti Patel and Bob Stewart

Monday 8th June 2020 Commons Chamber

[Priti Patel]

As we saw post the 2010 and 2011 riots, it is important that we see swift justice. We have a process of swift justice in place to ensure that justice is served for the appalling acts that we have seen over the weekend.

[Bob Stewart (Beckenham) (Con)]

Watching on the television, I thought the police seemed to be holding back. They will have been holding back for good operational reasons such as that they did not want too many people hurt. Will my right hon. Friend assure me that the police have every power they need to cope with future riots such as the one that they had to go through on Saturday?

[Priti Patel]

My hon. Friend is absolutely right. He will know of the operational independence of our police forces. Obviously, police and crime commissioners have responsibility for the totality of policing within their force areas. When it comes to resource and support of our police officers, I am unequivocal: we have given the police the highest funding uplift in more than a decade; we are equipping and training them so that they are equipped at the highest level and to the highest standard, and that, of course, will continue.

Windrush Lessons Learned Review

Debate between Priti Patel and Bob Stewart

Thursday 19th March 2020 Commons Chamber

[Bob Stewart (Beckenham) (Con)]

As someone who has served in the military with soldiers from the Windrush generation, may I say that we never once thought of them as anything other than British? We looked in their eyes, and the eyes that looked back were British to the bone.

[Priti Patel]

I thank my hon. Friend for his comment. This review gives voice to people from the Windrush generation, who, of course, not only came to the UK legally, but were part of our country. They contributed to our country, our economy and our public services in an unprecedented way.

Major Incident in Essex

Debate between Priti Patel and Bob Stewart

Monday 28th October 2019 Commons Chamber

[Priti Patel]

The hon. Gentleman is absolutely right, and I can assure the House that in this particular investigation, that is exactly how we will be working.

[Bob Stewart (Beckenham) (Con)]

These containers are not necessarily moved around on the backs of lorries, but may be parked on ferries and so on. Can my right hon. Friend assure me that the authorities, Border Force and the police—and, indeed, the drivers of the lorries—have the means and the competence to open the containers if necessary?

[Priti Patel]

My hon. Friend raises some important points. There are a number of ways of providing support for lorry drivers and others. A great deal of work is done through road haulage associations in the UK and across the EU to provide information and intelligence about what to do in situations of this nature, and also about how they can protect themselves from trafficking. If there is anything else that my hon. Friend would specifically like to know about the Home Office’s and Border Force’s work and about how we collaborate with many other organisations, I shall be happy to write to him.

Counter-Daesh Update

Debate between Priti Patel and Bob Stewart

Wednesday 15th March 2017 Commons Chamber

[Priti Patel]

The hon. Gentleman is right to raise that point. We have Ministers who are working directly with the Kurdistan Government, and support is going in to help the refugees. Importantly, his point demonstrates the extent of the crisis in the region, the level of displacement that is taking place and the challenges that need to be overcome.

[Bob Stewart (Beckenham) (Con)]

May I ask my right hon. Friend to give us an update on what is happening in Aleppo? For instance, is British aid getting through to the citizens of Aleppo at the moment?

[Priti Patel]

My hon. Friend will be well aware that the Aleppo situation is still very difficult—quite frankly it is traumatic and harrowing. There are grave difficulties in getting aid into Aleppo. As I said in my statement, we saw the atrocities and the extent of the pressures in the area in December. That said, we are looking at every single possible avenue that we can use to get aid not only into Aleppo but into other besieged areas. That is a continuing focus of DFID and of the wider humanitarian community.

European Union (Approvals) Bill [Lords]

Debate between Priti Patel and Bob Stewart

Tuesday 3rd November 2015 Commons Chamber

[Bob Stewart]

But there must be financial implications, because EU civil servants will be working and someone will probably be appointed to supervise this activity. That is a financial implication.

[Priti Patel]

There are no new financial implications, as I said clearly in my opening remarks. On that basis, I commend the Bill to the House.

Question put and agreed to.

Bill accordingly read a Second time.

European Union (Approvals) Bill [Lords] (Programme)

Motion made, and Question put forthwith (Standing Order No. 83A(7)),

That the following provisions shall apply to the European Union (Approvals) Bill [Lords]:

Committal

(1) The Bill shall be committed to a Committee of the whole House.

Proceedings in Committee, on Consideration and up to and including Third Reading

(2) Proceedings in Committee, any proceedings on Consideration and any proceedings in legislative grand committee shall (so far as not previously concluded) be brought to a conclusion two hours after the commencement of proceedings in Committee of the whole House.

(3) Proceedings on Third Reading shall (so far as not previously concluded) be brought to a conclusion three hours after the commencement of proceedings in Committee of the whole House.

Programming committee

(4) Standing Order No. 83B (Programming committees) shall not apply to proceedings in Committee of the whole House, to any proceedings on Consideration or to other proceedings up to and including Third Reading.

Other proceedings

(5) Any other proceedings on the Bill (including any proceedings on consideration of any message from the Lords) may be programmed. —(Guy Opperman.)

Question agreed to.

Childcare Payments Bill

Debate between Priti Patel and Bob Stewart

Monday 17th November 2014 Commons Chamber

[Priti Patel]

I welcome the hon. Member for Wirral South (Alison McGovern) to her position and post. It is good to hear from her. Obviously, she did not have the full benefit of participating in the Committee, so it is good to hear her views today.

New clause 2 is about the Bill’s impact on child care costs, an issue that we discussed at some length in Committee. The new clause would require the Government to publish a review of the Bill’s impact on the cost of child care three months after it passed into law, and every three years thereafter. The review would have a particular focus on the effectiveness of the Act in making child care more affordable, the average cost of child care for working parents, and the impact of supply-led measures on costs.

As I have said many times in debates on this Bill, the Government have made a clear commitment to review the impact of the scheme two years after full implementation. That was set out in the impact assessment published alongside the Bill. The Government feel that a two-year assessment period is reasonable and will allow sufficient time for the scheme to become bedded in, so that the full impacts can be assessed and properly evaluated in the context of wider Government policy. We do not think that there is anything to be gained from adding a further review after only three months.

I think that all hon. and right hon. Members are rightly concerned about the impact that high child care costs have on working parents. We understand the cost of child care, and the Government are committed to supporting parents to meet that cost; that is the purpose of the Bill.

[Bob Stewart (Beckenham) (Con)]

I assume that the Minister and her team will watch this very closely from the start. She may not need a review: if she saw something going wrong, she would take immediate action to correct it, before the two-year point.

[Priti Patel]

I thank my hon. Friend for his comment. Naturally, we want to get this right, so there is oversight at every level. Later in my remarks, I shall touch on areas where his remarks are valid and pertinent.

We know that child care is an expensive outgoing for many families across the country. This Government understand the need for both demand and supply-led measures to ensure that the costs of child care do not spiral out of control. We have been taking steps to ensure that both sides of the problem are properly considered. The Government believe that increasing supply is an effective way of limiting further price rises, and are therefore making significant reforms to support the child care sector in increasing the supply of places.

The Government are taking actions beyond the scope of the Bill to improve the quality and supply of child care provision. These reforms are designed to ensure that any increase in demand for child care arising from the new scheme will be matched by increased supply and not by increased costs. The latest figures show that there are about 100,000 more child care places than in 2009, and the Government are taking action to grow the supply of child care still further, which will improve choice and affordability for parents. For example, we are making start-up grants of up to £2 million available to help people set up new child care businesses. We are also enabling good and outstanding childminders to access funding for early education places. Only 4,000 do so currently, but as a result of our reforms, up to 32,000 will be automatically eligible. We are making it simpler and easier for schools and child care providers to work together to increase the amount of child care available on school sites, and only this year we have introduced childminder agencies, which are designed to improve the support available for both childminders and parents, and to simplify existing regulatory frameworks to allow nurseries to expand more easily.

We recognise that child care costs place a significant financial burden on many families, but research shows that after 12 years of consistently rising prices, the costs of child care in England have stabilised for the first time. There is encouraging evidence that costs of some of the most popular types of child care are falling in England. For example, the Family and Childcare Trust reported in March that the cost of nurseries in 2014 was 2% lower than in the previous year in real terms. Similarly, the cost of after-school clubs reduced by 5% in real terms during the same period. Once inflation is taken into account, costs for the majority of parents have fallen. This means that more parents are able to access affordable child care and support their families, and shows that the Government’s reforms are making a difference. We should compare that with the situation under Labour, when costs rose nearly 50% between 2002 and 2010, and the average cost of child care rose faster than inflation.

Alongside these measures to increase the provision of good quality, affordable child care, the Government have taken significant steps to support families in meeting their child care costs.