(1 year, 10 months ago)
Commons ChamberI am very grateful for my hon. Friend’s good advice, because those who were unsuccessful in round 1 have been successful in round 2. Round 3 is coming up and I look forward to announcing further funds in due course.
This has been another kick in the teeth for the people of Leeds from this Conservative Government. After cuts totalling £2 billion to Leeds City Council’s funding since 2010, a bid to redevelop Fearnville sports centre in my constituency has been rejected yet again. All six bids from Leeds were rejected. There are zero pounds for Leeds, while in the Prime Minister’s wealthy constituency up the road, there is £19 million for him. Is it not the case that what this is really about is not levelling up, but Tory favouritism and the Tories looking after their own? Leeds deserves far better.
As someone who grew up in Leeds, I think it is a great area. It has had significant regeneration over the years, which I have seen at first hand. Of course, further generation would be welcome. On the point about Opposition parties, I reiterate that 45% of the funding has gone to Opposition areas.
(2 years, 5 months ago)
Commons ChamberUrgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
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The points that my hon. Friend makes are set out in the energy security strategy, because we recognise that the North sea will still be a foundation of our energy security. It is right that we continue to encourage investment in oil and gas as we transition to renewables. My hon. Friend is right that the sector, along with many others, provides important jobs for people in the areas where generation is taking place.
The additional tax breaks given to oil and gas firms mean that the Government are handing billions over to the very companies that are driving up people’s bills and fuelling climate change. That is money that could have been used to insulate 2 million homes, saving each household £340 every year. Are these tax breaks for more fossil fuel producers not the very opposite of what is needed to protect the planet, end our reliance on expensive gas and, crucially, invest in insulation that could get bills down?
With the greatest respect, I think that the hon. Member misunderstands the policy. What we are introducing is a significant tax on the oil and gas sector that will fund the most vulnerable, so it is the firms handing money over, as he puts it, to us. We have said that we recognise that companies should invest, because it is good for jobs, good for investment, good for our competitive industries and good for our energy security for the future. We have recognised that we will give tax reliefs if that investment is made.
(2 years, 11 months ago)
Commons ChamberAs always, it is a pleasure to serve under your chairship, Dame Eleanor. I wish to speak in support of new clause 16, which is in my name, and new clause 8, which has been tabled by my hon. Friend the Member for Hemsworth (Jon Trickett).
Both new clauses aim to tackle the gross injustice of taxes on share dividends being set at less than income tax rates. They are both part of a wider push for tax justice and wealth taxes—a push made ever more urgent by the growing inequality that we have seen throughout the pandemic. I also support the new clause on this issue from the Leader of the Opposition and the new clause on the banking surcharge. It is shameful that the Government are cutting taxes for banks while increasing the tax burden on working families.
Faced with a backlash over their plans to impose tax rises on working people, the Government made a very limited change, increasing the taxes on share dividends by 1.25%. That was done to try to give the impression that they were sharing the burden of the so-called health and care levy equally between ordinary working people and those lucky enough to live off their wealth. But that was just smoke and mirrors, done solely to deflect the media and distract the public, not to help to actually secure economic justice. That is obvious from the amounts that will be raised by the so-called health and social care levy. The national insurance increases will raise £11.4 billion a year, while the increases in tax on share dividends will raise just £600 million a year. We need to be clear about this: the Government’s change is woefully inadequate.
However, this can act as a watershed moment when we finally get to grips with the great injustice in our tax system that wealth is often taxed at much lower rates than income tax. It is clear, is it not, that our economy is rigged in the interests of the 1%? That has become even clearer during the pandemic, when we have seen the corrupt contracts that have been handed out or the fact that the billionaires have increased their wealth by £290 million a day while food bank use has hit record levels. How completely grotesque.
Our tax system is also rigged in the interests of the top 1%. One obvious way in which that happens is that those with wealth get special discounts on their tax rates. They pay lower tax rates than the vast majority, who have to go out to work day in, day out. My new clause seeks to put a stop to that racket, to that injustice. Why on earth is someone lucky enough to have inherited millions of pounds of shares and who now lives comfortably off their annual share dividends allowed to pay a lower rate of tax than people who have to go to work day in, day out? That is completely unfair and completely unjustifiable. It needs to change. Economic justice demands change, and my new clause would deliver that. It would raise tens of billions of pounds that could go towards funding a national care service, for example, in a progressive way by taxing wealth and not by hitting the pockets of working people.
Let us look at how this rigged system works in practice for those lucky enough to be in the top 1% of incomes. They currently have to pay a 45% rate of tax on income but pay way less on earnings from share dividends: just 38.1%. That tax discount applies even though payments to shareholders primarily go to a very wealthy minority. One quarter of the total income of the richest 1% is generated from dividends and partnership income alone.
The Government try to give the impression that we somehow live in some kind of shareholding democracy where everybody has an equal stake in owning shares, but I am afraid that that is just not true. TUC research shows that UK taxpayers earning over £150,000, which is just 1% of all taxpayers, captured about 22% of all direct income from UK dividends, so the wealthiest accumulate their money from share dividends instead of working, and the Government reward them for this with a tax discount. That is totally unjustifiable, totally unreasonable and totally indefensible.
The changes I have called for in new clause 16 would raise billions for the Treasury—billions that could go towards funding a national care service. Institute for Public Policy Research calculations in 2019 estimated that this would raise £29 billion over the lifetime of this Parliament, even after accounting for behavioural changes. But I am afraid the Conservative party does not want to tax the income of the super-rich who bankroll the party. This new clause has been tabled as an opportunity for the Government to really tackle the injustice in our taxation. It is absolutely outrageous and it needs to change, and that is why I put down this amendment.
I will take the opportunity to respond to some of the points that have been made on the Bill, and I will start with those made by the hon. Member for Ealing North (James Murray). He started by suggesting that there was not a sufficient growth rate in the economy, but what the Budget documents show and the OBR has said is that there will be growth year on year for every year in the Budget forecasts.
The hon. Gentleman asked me to come back to him on cutting taxes for banks. I do not think he heard some of the points I made in my speech, because I did mention that the tax the banks are paying is not actually reducing, but increasing. I think he did not hear me say that they will be paying an additional £750 million in tax over the period to 2026-27, based on current forecasts.
The hon. Gentleman talked quite a lot about fairness—fairness to working people—and he suggested that the rise in the dividend payment was not fair. I do not accept that. What we have calculated is that the additional higher rate taxpayers are expected to contribute over three quarters of the revenue raised by this measure next year. It is interesting to note that the Resolution Foundation thought that this measure was indeed fair. It said that it welcomed the
“moves to address some of the fairness problems”
that came with choosing to focus on the tax increase on national insurance by raising dividend taxation.
The hon. Gentleman asked me a specific practical question on what support will be provided to traders who are affected by basis period reform, and I am very pleased to get back to him on that. I would like to reassure him that more than 80% of affected businesses are represented by a tax agent, but HMRC is currently exploring how best to help unrepresented taxpayers through basis period reform.
The hon. Member for Gordon (Richard Thomson) rightly talked about the importance of getting to net zero. He will know—he will have attended many debates in this House and I am sure he will have read our net zero strategy—about the emphasis the Government place on net zero. He talked about his work in Aberdeenshire, so I hope that he welcomes the investment we have made in that area in Scotland. We continue to deliver on important existing commitments in Scotland, including £27 million for the Aberdeen energy transition zone and £5 million for the global underwater hub, which will help support Scotland’s standing as a world leader in clean energy.
The hon. Gentleman also mentioned the important issue of playing by the rules, which Conservative Members think, as he does, is very important. I am sure he will be pleased to know that, since 2010, the Government have introduced over 150 new measures and invested over £2 billion extra in HMRC to tackle fraud.
The hon. Member for Edinburgh West (Christine Jardine) mentioned the cost of living. Obviously, many of the spending measures are in the spending review, rather than in the Finance Bill, so I hope she will not mind my mentioning some of our spending measures. The significant tax cut for people on universal credit, and the raising of the national living wage, are two measures that are really helping those on lower incomes.
(4 years, 4 months ago)
Commons ChamberJoining up probation to other community services is critical. The new model for probation will allow us to build on local links that have already been forged. In the future probation system, more than £100 million a year will be spent on specialist rehabilitative and resettlement services, including education and employment.
Like the hon. Member, I pay tribute to the dedicated work of all those who have been working in the community rehabilitation companies across the country and, indeed, the National Probation Service. I welcome the work of the CRC in her area. As I mentioned, £100 million has been put forward for the new scheme—the dynamic framework, which has already been launched—so that local voluntary sector and private companies can bid to provide local services in communities. I look forward to seeing their bids.
The Government were warned repeatedly that privatising probation would be a disaster—that it would cost more and leave the public less safe. The Government not only ignored those warnings but spent years ignoring the mounting evidence of their failed policy. They have practically had to be dragged kicking and screaming to finally agree to reverse this catastrophic privatisation. If they are finally going to properly sort out rehabilitation, is it not time to end, once and for all, the racket of mega-corporations like Sodexo, Serco and G4S profiting from our prisons and probation services?
We believe that we should provide good services, whether that is by the public sector or by the private sector. We have in operation some excellent public service prisons, as we do some excellent private sector prisons. We are very pleased that we are integrating probation into the public service, providing a very important role, but we will continue to ensure that private sector companies and local voluntary sector companies can bid for rehabilitative services through the £100 million dynamic framework.
(5 years, 1 month ago)
Commons ChamberI pay tribute to the centre’s work, which I am sure is important to the hon. Lady’s local community. There is funding from a variety of sources for women’s centres and, as I mentioned, it is something we will be looking at very carefully as we develop the female strategy. We have funded a number of very valuable women’s centres over the past year, including the Sunflower Centre in Plymouth and a new women’s centre in York.
Two thirds of women sent to prison get sentences of less than six months. Such sentences are proven to lead to more reoffending, and so create more victims of crime than tried and tested alternatives such as women’s centres. The Justice Secretary and his team know this, but they have chosen to ignore the evidence. Will the Minister tell the House today how many crimes her Department’s own research shows will be prevented by investing in such alternatives to ineffective short prison sentences?
We are very interested in looking at alternatives to prison sentences. Although we want the most serious offenders who commit serious violence and sexual crimes to spend the appropriate time in prison, we want to ensure there are sentences on offer in which the judiciary have confidence and that will turn people’s lives around. We are already working to improve the quality of information that sentencers receive about community sentencing options, including, for example, whether an offender is a primary caregiver and is pregnant or has given birth in the previous six months, so they can take that into account and give the appropriate sentence.
To help with that answer: the Government’s own research says that investment in alternatives would see more than 30,000 fewer crimes every year, an answer the Minister omitted, yet the Tories are deliberately choosing to ignore the evidence and are failing to invest properly in women’s centres and other proven alternatives. Instead, they are chasing “hang ’em and flog ’em” headlines, thinking that will help them win the coming general election. Luckily, the British people are not the mugs they are trying to take them for.
Does the Minister agree with her own Department’s report from July, which notes a
“statistically significant increase in proven reoffending”
for those on short sentences rather than effective community alternatives? If so, will she act on it?
I think the hon. Gentleman failed to listen to my previous answer on the importance the Government place on appropriate sentences and on our particular strategy for female offenders. I was at HMP Send a few weeks ago, and I saw how we are turning people’s lives around in prison. I met a woman who was due for a parole hearing—she is a lifer who has served 10 years—and she told me that she is not actually ready to be released because of the amazing support she is getting through the therapeutic community in her prison. For the first time, she is realising the consequences of her actions. We are absolutely committed to ensuring that women get the right sentences and the right provision in the community and in the prisons.
(5 years, 7 months ago)
Commons ChamberThe hon. Gentleman mentions housing. It is right that, across the country, some areas are quite sparsely populated, but people can always get advice on the telephone gateway. There are 134 housing and debt procurement areas, and as of 31 March 2019, there is at least one provider offering housing and debt services in all but five procurement areas. The Legal Aid Agency recently concluded a procurement process, and services in three of those areas will commence on 1 May. The agency is considering how to procure provision in the remaining two.
Government cuts to legal aid have left tens of thousands of welfare benefit claimants without the ability to appeal flawed DWP decisions. We continue to see harrowing stories of those who have suffered after such poor decisions. Those cuts left tens of thousands of tenants unable to take on lousy landlords, and left migrants unable to fight back against the Conservative party’s hostile environment. Can the Minister explain why these vulnerable people are far too easily cast aside, while the private companies failing in our prison, probation and courts systems are too readily bailed out? Does this not sum up in whose interests the Conservative party governs?
This party and this Government would like to support all people who need support, but we need to provide it in a way that is efficient, provides a good service and uses taxpayers’ money well. That is why we set out in our legal aid support strategy a variety of pilots that we will hold to help people in a variety of areas of law—housing, immigration—and all these can be bid for. We are putting forward £5 million for people to develop and put in place technology provision, face-to-face support and other support for legal aid.
It is just not good enough because all too often the Government spin against legal aid, with talk of fat cat lawyers and unmeritorious claims, but the latest figures show that the number of not-for-profit providers, such as law centres, has fallen by nearly two thirds under this Government. Will the Minister follow Labour’s lead and commit to funding a new generation of social welfare lawyers that can empower communities to battle against injustice and a new generation of law centres that can empower people to fight back against cruel Government policies?
While the professions and those who provide support are incredibly important—that is why, as I mentioned earlier, we have put £23 million more into criminal legal aid professionals—we would like to focus on helping those who need that support. That is why we are focusing on our £5 million innovation fund to find out what sort of support people need and how best to provide that support. We recommend and hope to support bids from legal advice centres as well as from professionals.
(5 years, 9 months ago)
Commons ChamberI am happy to meet the hon. Lady to discuss that specific situation. The MOJ is taking a number of steps to improve court timeliness, which is of course important. We are digitising a number of services—people can now track their tribunal appeal online—and recruiting more judges to tribunals, with more than 225 recruited over the past year. I am happy to discuss that particular case.
Under the smokescreen of a digital revolution, the Government have taken the axe to our court system. A victim of crime who wants justice through their day in court will now have a much more difficult experience, perhaps having to travel much further after the closure of hundreds of courts, and perhaps finding that the help and support they need are lacking after the sacking of thousands of court staff. Given the recent chaos, instead of forcing through yet more court reforms, will the Minister agree to a moratorium on further cuts and closures, at least until this House has been offered a chance to scrutinise changes that will affect access to justice for decades to come?
The hon. Gentleman is right to identify the fact that an IT issue affected courts towards the end of January. That disruption was caused by an infrastructure issue in our supplier’s data and I apologise for any issues for people who were affected. The hon. Gentleman will be aware that we have consulted on what principles will guide any future court closures, and that consultation has now come to an end.
(5 years, 11 months ago)
Commons ChamberAs I mentioned, the Prime Minister has made it clear that she is seeking to ensure that the measures that underlay them, and the co-operation within them, will continue as far as possible post Brexit.
I should mention, because the hon. and learned Lady often asks about liaison with the Scottish Government, that I spoke to my counterpart, the Cabinet Secretary for Justice on 29 November, and he reiterated to me how pleased he was with our engagement at official level on the negotiations with the EU.
The Government have created a Brexit crisis through their rotten deal, which is abhorred by both sides of the House. While the Prime Minister runs scared of democracy and delays the meaningful vote, Cabinet responsibility has broken down, with Ministers pitching their own plan B or even plotting leadership bids. Planning for future judicial collaboration with Europe is suffering as a result. The Justice Committee says the Government are providing “little detail or certainty” about future judicial co-operation. The Lords EU Justice Sub-Committee warns of a “worrying level of complacency”. When will the Secretary of State pay as much attention to dealing with this problem as he does to problems in his own party?
My Department is making a lot of efforts to ensure we have the right deal. We have received £17 million for EU Brexit preparations. We have over 110 full-time employees, including newly recruited employees, working across deal and no deal. I would say, as the Lord Chancellor said in his FT article at the weekend, that the Conservative party is ensuring the future of our country, whereas the leader of the Labour party is just trying to make political points to ensure a general election.
The hon. Gentleman will have heard that we are doing a review of legal aid, which will be published early in the new year. I was interested to read the recent Scottish Government report on legal aid, which implements a number of the things that we are already doing, including using technology to help our court processes.
The current Prime Minister unleashed the Home Office’s hostile environment against migrants, and the Windrush scandal shows just how easily people can fall foul of this Government’s complex and cruel immigration rules. It is even tougher for those who have to navigate this hostile environment without legal advice, yet access to legal aid-funded immigration advice has fallen by 68% under the Tories, from 120,000 cases in 2010 to 39,000 cases this year. So do the Government regret scrapping such publicly funded legal advice that can save people from unfair decisions and deportations, and if so, will they reinstate it?
The hon. Gentleman has not made that offer. The Opposition have made an offer in relation to welfare, but not, I note, in relation to immigration. Let me remind him that people can already get legal advice for asylum and non-asylum cases, and for cases involving detention, the Special Immigration Appeals Commission, domestic violence and trafficking. I want to make it clear to the House and to everyone who is listening that people are often not claiming legal aid because they do not believe they are entitled to it, because the Opposition and some others suggest that it is not available.
(6 years ago)
Commons ChamberFamily reunion is an important issue, and I have met a number of Members to discuss that Bill. As the hon. Gentleman knows, we are looking at legal aid broadly and will set out the consequences of our review by the end of the year.
Of all the cuts to justice, the slashing of legal advice for sick and disabled people who are unfairly denied their benefits is one of the cruellest. We now have a shameful situation whereby people are first denied the financial support to which they are entitled and then must struggle through a difficult appeal without legal advice. This situation is bad enough already, but it will be even tougher under universal credit. Under the Conservatives, legal advice for welfare benefits cases has been cut by 99%. Is the Minister ashamed that sick and disabled people are paying the price for this Government’s ideological cuts agenda, or was that the deliberate intention?
I am not aware of any representations from the Labour party in relation to any provisions that it would make on legal aid funding. This is an important area involving people who are vulnerable and need help. Prior to LASPO, people did not get help at the representation stage of welfare cases—only at the advice stage. We are making a number of changes to make the tribunal process that people go through much simpler and more straightforward.
Let us be clear: legal advice was given to 91,000 people in the year before this Government’s reforms to legal aid. How many was it last year? It was 478 people, not 91,000. Can the Minister honestly tell the House that the need for legal advice has reduced by such a degree, or should we instead conclude that—just as with employment tribunal fees, housing advice, employment advice and immigration advice—the cuts to legal advice for the sick and disabled are really about targeting the weak so that they can enrich the powerful?
As I mentioned earlier, we spend £100 million on legal help and we are improving the tribunals service to enable people to access and liaise with judges to improve their process through the court system.
(6 years, 1 month ago)
Commons ChamberAs I represent a rural constituency, I completely understand my right hon. Friend’s point. The Government have recently consulted on the powers available to local authorities to deal with such problems and we are now looking at how we might strengthen the powers of local authorities and landowners.
The Prime Minister told her party conference that austerity is over, but if that were true, everyone in the justice sector would be breathing a huge sigh of relief. Tory cuts have unleashed an unprecedented crisis in our prisons and wider justice system. Justice faces the deepest cuts of any Department, totalling 40%, with £800 million in cuts between April 2018 and 2020 alone. Those cuts risk pushing justice from deep crisis into full-blown emergency, so will the Secretary of State confirm that that £800 million of cuts will not go ahead? If not, will he agree with me that the Prime Minister’s words were nothing more than yet another Tory con trick?
(6 years, 4 months ago)
Commons ChamberMy hon. Friend makes an important point. We are of course recruiting more prison officers. Enjoying one’s work is not just about pay, and the reward strategy in prisons is about officers working closely with their prison governors to ensure that they have an opportunity to develop in work and get the most out of their work.
I regularly ask parliamentary questions about staffing levels and conditions at the private probation companies. The answers from the Department are shocking. None of the community rehabilitation company contracts specifies that CRCs must maintain staffing numbers at a particular level. When Ministers bailed out the private probation companies last year with another £342 million, they did not bother to make staffing levels a contractual obligation. Why not? Does the Department not care about accountability? Or is it because, in the Secretary of State’s privatised probation service, profits always come first?
We believe it is important that systems work and that outcomes are effective. The contracts focus on ensuring that the right outcomes are achieved, not on the number of people who work under them.
(6 years, 5 months ago)
Commons ChamberThe hon. Lady has made an important point. The Government have done a significant amount in relation to domestic violence, understanding that it often involves not just physical abuse but, as the hon. Lady says, coercive control. We have also changed many of the guidelines relating to domestic violence so that people who have experienced such abuse can obtain legal aid more easily. I hope that that resolves some of the problems that the hon. Lady has identified.
The Government’s cuts in legal aid have caused widespread damage to access to justice. The Information Commissioner has now taken serious action against the Ministry of Justice, owing to its refusal to publish in full the findings of its own research, which reveal judges’ deep concerns about the damage that is being caused. Would not the Government have spent their time better in trying to fix the broken justice system, rather than engaging in crass attempts to cover up embarrassing research findings showing the failures of their legal aid policies?
As the hon. Gentleman will know, we are currently engaged in an extensive review of the Legal Aid, Sentencing and Punishment of Offenders Act 2012. We have met with over 50 organisations or individuals so far this year. I am aware that a complaint has been made to the Information Commissioner’s Office, and my Department is working closely with the ICO on this matter.
The truth is that our legal aid and wider justice system is in crisis—a crisis created by this Government’s reckless cuts agenda—and the Government seem to be trying to bury the truth about the legal aid crisis. The research I referred to that was hidden away said that the judges
“believe unrepresented defendant numbers have increased and this is disproportionately reducing the efficiency of the courts.”
So will the Government today come clean and explain to this House why such evidence from judges about the scale of the damage the Government’s cuts are causing to access to justice was removed from the published report?
The hon. Gentleman will know that 99% of people who claim legal aid in the Crown courts are granted it. He will also know that in the report he identified, although there are some unrepresented defendants, most people surveyed said that did not make a difference to outcomes.
(6 years, 7 months ago)
Commons ChamberThousands of key court staff were axed, but the Government are now spending tens of millions of pounds more on contracting agency staff. More than 100 courts were sold off, each raising not much more than the average house price. Now the Secretary of State has appointed someone with a slash-and-burn record as the new chair of the HMCTS board, telling the press that Tim Parker’s
“expertise will be vital as we deliver our reform and modernisation of the courts”.
To allay concerns that Mr Parker has been appointed for his toughness on cuts, can the Minister outline the specific expertise that Mr Parker has in working in our court system?
The hon. Gentleman makes a number of points that I would like to refute, but I will mainly concentrate on two. It is important that where successful people in business put themselves forward for public service, we should welcome them and not put off experienced people from taking up important posts. Mr Parker has been successful in the businesses that he operated and has operated them appropriately, and we welcome him to his post. The hon. Gentleman also talks about cuts to our system. I would like to make it clear that the Ministry of Justice is proposing an extensive reform programme, which will put £1 billion into our courts service.