Finance (No. 2) Bill (Second sitting)

Rob Butler Excerpts

Committee stage
Tuesday 16th May 2023 Public Bill Committees

[Victoria Atkins]

My hon. Friend brings a particular fervour to his intervention, if I may say so. I absolutely want very high-earning people to pay their proper taxes here in the United Kingdom, but we need to stay competitive, which is why we look at other countries around the world. Our competitors have regimes that give tax advantages, or they are more careful with the tax that they apply, to people who are so highly mobile. I want to bring those people to the UK and get them to pay UK taxes on their UK earnings.

[Rob Butler (Aylesbury) (Con)]

It is a pleasure to serve under your chairship, Ms McVey. Is it not also the case that attracting those very mobile people to this country means that they then spend money in this country? Some of that is on VAT—a further tax—and much of it is on employing other people, who then pay tax themselves, so the very presence of such very mobile people has a multiplier effect on tax.

[Victoria Atkins]

I completely agree: there is a ripple effect from those individuals. Conservative Members understand the concern that such people should pay their taxes fairly and contribute to our economy, which is precisely why it is a Conservative Government who act on loopholes when they emerge and are drawn to our attention, as we have done in the Bill but also in 2017. There is a delicate balancing act to ensure that we remain internationally competitive.

Finance (No. 2) Bill (First sitting)

Rob Butler Excerpts

Committee stage
Tuesday 16th May 2023 Public Bill Committees

[Dame Angela Eagle]

I agree, and the hon. Lady makes a valuable point. For societies to advance in a sensible, healthy way, succeeding generations must have optimism about things changing for the better. That also tends to lead to happier societies with people who are more likely to innovate and go the extra mile. We all want that so that we can rebuild prosperity for our nation in the years ahead in the new, more isolated circumstances in which we find ourselves, as a result of which we must remake the economic foundations of our country. I wonder how much fiscal drag helps us to do that, and I am interested to hear the Minister’s observations on how that approach will help.

There are other undesirable effects of threshold freezes of the kind encompassed by clause 1, including very high marginal tax rates for people in particular circumstances. We know from the Prime Minister’s tax return that he effectively pays 22% on his millions of earnings every year, if one combines the income tax that he pays with the way that he takes out his money through capital gains and in other areas. However, given the present tax thresholds and fiscal drag, there are people who will face marginal tax rates of 45% and 60%, which are very high—much higher than those that the Prime Minister faces.

The Treasury Committee is so concerned about that that we have begun an inquiry into spiky marginal tax rates and cliff edges. As you will know, Ms McVey, from having been Secretary of State for Work and Pensions, cliff edges and high marginal tax rates can often combine to create even greater losses of income. That is a disincentive to work harder, get more hours and move jobs when the increased wage may not compensate for the higher marginal tax rate, or a combination of the higher marginal tax rate and the cliff edge for a particular allowance. When we took evidence a few weeks ago, we discovered a marginal tax rate combined with a cliff edge that was over 100%.

There are issues surrounding the £50,000 threshold, at which point high earners start having child benefit clawed back. That has remained unchanged. It has not gone up; it is another frozen threshold. That is dragging far more people into the means test for child benefit than even the Conservative Chancellor George Osborne—we can say his name now, as he is no longer a Member of this House—intended when he introduced the policy. The Government should be aware of the combined effect of fiscal drag and unindexed rates on real people’s choices.

Freezes are a stealthy and arbitrary way to raise tax revenues. They often have a bigger impact on household incomes than more eye-catching discretionary measures do. They are particularly expected to have an impact on lower earners. By 2028, someone earning £20,000 will be £1,165 poorer under the current fiscal drag system than they would if income tax had been raised by 1%. There have been various calculations of how many pennies this stealth tax raises on the up-front rate of income tax, and they range from 3p to 4p per £1. I hope that the Minister will confirm that and try to justify why on earth the Government are raising money in that way, rather than being more transparent and up-front about rates of income tax. What will they do about the high marginal rates that the fiscal drag and frozen threshold system is landing our entire structure with? It is distorting the structure and making it very difficult to justify much of how it works for the future.

[Rob Butler (Aylesbury) (Con)]

I am interested in what the hon. Lady is saying. Will she clarify the latter point about the increase in the rate that would have been necessary had it not been frozen? Is she saying that she would rather the basic rate of income tax had been put up by 3% or 4%, such that lower-paid workers—nurses, for example, to whom she has referred—who are in the lower tax bracket would pay more tax? That seems to be the logical end point of what she has suggested.

[Dame Angela Eagle]

I am not suggesting any policy—far be it from me to do so from this side of the House. I am a mere Back Bencher, and it is not for me to make tax policy from the Opposition Back Benches. I am merely pointing out some problems that the choices that the Government appear to have made with this stealth tax are causing real people out there.

The problems are exacerbated by high marginal rates, and by very difficult and bad incentives that are quite hidden. That is why I am raising some of them here—I am attempting to draw attention to them to see whether the Minister has a response. If the Government are working on those areas, I am trying to find out what they aim to achieve by doing things this way. That is precisely what these Standing Committees are about—one gets to talk in more detail about choices that are made.

The hon. Gentleman must not imagine that I am putting forward a completely costed, different alternative, because this is not the place or time to do that. I am pointing out some of the problems, about which there is cross-party concern. I am not even making highly party political points. Far be it from me to do so—it is too early in the morning for me to do too much of that—but there are issues that we need to surface so that we can hear the Government’s official response.

I fear that we are driving into a cul de sac that will cause more problems than it solves, particularly in the interaction of the income tax system with a range of benefits, not only for the very low paid, but for medium earners. That is not being properly talked about, so by raising the matter at this point in the Bill, I am trying to get a handle on the Government’s thinking. I look forward to listening to what the Minister has to say about it, and perhaps even intervening further if she says something that piques my interest.

Cost of Living Increases

Rob Butler Excerpts

Tuesday 25th April 2023 Commons Chamber

[Rob Butler (Aylesbury) (Con)]

In her opening remarks, the shadow Minister asked what planet Conservative Members are living on. I will tell her. We live in the real world, whereas it seems that Labour Members have been living under a rock. We have just emerged from the worst pandemic since 1918, a new disease that killed millions of people globally and as a result saw much of the international economy grind to a halt. That tragedy was compounded by the brutally evil ambitions of President Putin when he launched his illegal and inhumane invasion of Ukraine. Not only has his regime murdered countless innocent civilians; his actions have had a massive impact on energy prices, further adding to the cost pressures experienced globally. And that is just it: this is a global problem—not national, global.

The rise in the cost of living over the past year has impacted on all our constituents. Nobody denies that, least of all the Government. It is surely the very reason why the first of the Prime Minister’s priorities is to halve inflation, which will, in and of itself, bring massive benefit to everybody who is struggling with rising prices and the cost of living. As the late and much-missed Baroness Thatcher said, “inflation devalues us all”. As on so many issues, she was absolutely right.

The good news is that the Bank of England is clear that inflation will fall dramatically this year. Indeed, one of the biggest deflationary tools in the Government’s extraordinary package to help my constituents with the cost of living was the energy price guarantee, which lowered bills for the vast majority of my constituents and the constituents of every single Member in this House. That has helped to curb the inflationary spike caused by what we are seeing day in, day out in Ukraine.

It is not just support with domestic energy on which the Government have helped my constituents. Fuel duty has been frozen for the 13th consecutive year, saving drivers some £200. Let us contrast that with what Labour is doing for people who drive. We need look no further than the Mayor of London. He is costing my constituents money with the ill thought through imposition of his new ultra low emission zone tax. People from Aylesbury who need to drive to parts of outer London for their work or for specialist hospital appointments will now have to pay £12.50 a day for the privilege—no help from the Labour Mayor with the cost of living.

What have we done as a Government? We have come up with a package of support worth £94 billion—an average of £3,300 per household. As we have heard, Conservative Members recognise that we are supporting low-income households with £900 in cost of living payments, the first of which is finding its way into constituents’ bank accounts from today. In Aylesbury, more than 10,000 stand to benefit from that assistance.

Growth and prosperity go hand in hand with improved productivity. That is what my constituents told me on Saturday that they want to see. I am so pleased that the Chancellor has rightly started work in that direction. In time, I would like to see the Government reverse measures on IR35 and reconsider the VAT threshold, because I believe that will help with those ambitions, but it has to come as our economy strengthens following the unprecedented shocks it received in recent times.

Labour offers the prospect of unfunded spending and higher debt. That is not a recipe to help people with the cost of living; it is a recipe for another letter from Labour telling us there is no money left. It is the Conservative party that will provide the short-term help and the long-term policies to enable the British people to enjoy greater prosperity now and far into the future. It is the Conservative Government who are building the stronger economy to help with the cost of living.

Co-operatives, Mutuals and Friendly Societies Bill

Rob Butler Excerpts

3rd reading
Friday 24th February 2023 Commons Chamber

[Rob Butler (Aylesbury) (Con)]

I congratulate the hon. Member for Preston (Sir Mark Hendrick) on his Bill’s successful Committee stage and on its reaching Third Reading today. Mutuals and co-operatives are not an insignificant sector of our economy: across the UK, the industry comprises more than 7,000 co-operatives, employing some 250,000 people with an annual turnover close to £40 billion. The sector is not standing still; it is growing, with more co-operatives forming despite the very challenging circumstances caused by the covid pandemic.

Perhaps nothing highlights the purpose of the Bill better than mutual insurers and friendly societies, the origins of which stretch back to the late 17th century. In 1703, the Amicable Society, chartered by Queen Anne, was set up to provide support to widows and children in the event of the policyholder’s death. Such organisations spread rapidly across the country. As the industrial revolution took hold in our towns and cities, mutual insurance and friendly societies acted as a social safety net for their members in case they were injured in what Blake described as the dark satanic mills. Thankfully, we have moved very far from those working conditions, but that does not mean that we no longer require mutual societies. The development of the sector continued for much of the 19th and 20th centuries. Many of the UK’s now well-known insurance companies began as mutual societies; there were then the various amalgamations, mergers and takeovers to which the hon. Gentleman referred.

There are 50 financial mutuals currently operating in the UK. According to the Association of Financial Mutuals, they represent 30 million members and write £20 billion of premiums annually; as I said, the sector is not at all insignificant. Many farmers in my constituency have policies with their local NFU Mutual, and people can remember the days of the man from the Pru—it was frequently a man—coming round to collect membership subs. Mutuals take many different forms. The Hughenden valley community shop in my constituency is a fine example of such an organisation today; it does a tremendous service to people in the area, and was particularly welcome during the pandemic.

In the insurance market, mutualisation is no longer the norm in the UK. Many of the well-known mutual assurance societies of old have been demutualised. The Prudential, Aviva—previously Norwich Union—and Scottish Widows were all mutual insurance societies, but are now fully commercial entities or subsidiaries of larger financial institutions. While I in no way criticise the work of those commercial entities, fully commercial organisations with shareholders have different priorities from mutual organisations, as the hon. Gentleman pointed out. There is absolutely room for both in our economy.

Mutuals now represent just 7.9% of the insurance market in the UK, according to the International Cooperative and Mutual Insurance Federation. That is far below the market influence that such organisations have on the continent: the market share is 58% in France, 60% in the Netherlands and 46% in Germany. There is scope for mutuals to grow again in the UK, and I welcome any comments from my hon. Friend the Minister about how we can increase competition in the insurance market to ensure that mutuals can compete with their commercial rivals

On the specifics of the Bill, although I appreciate that it does not represent the full proposals that the hon. Gentleman wished to bring before the House, he should be congratulated on and pleased with what he has achieved in securing Government support for this important piece of legislation. As my hon. Friend the Minister said in Committee, we should not let the perfect be the enemy of the good.

The changes proposed by the Bill will allow the Treasury to bring forward regulations to allow members of the society to choose to adopt legal restrictions, with the effect, as has been outlined, that the assets would be limited to specific purposes in line with the objectives of the mutual society. That will bring in a new degree of parity. At present, of course, the restrictions for mutual organisations are voluntary and based on the vote of the membership. As many hon. Members have noted in the Bill’s previous stages, that raises the possibility that restrictions could easily be removed in future, which would ultimately make it easier to demutualise.

The Bill will permit those mutuals that wish to remain mutuals a greater degree of certainty in protecting their legacy assets in future. It will also remove some of the financial incentives of demutualisation. Notwithstanding those potential advantages, I am particularly pleased that it is an opt-in system, because it is not for the state to dictate how such societies should operate; that should always be for their members. We should enable the possibility, rather than obliging any organisation to behave in a specific way. I commend the hon. Gentleman for bringing forward the Bill and I hope to see it on the statute book shortly, following its successful passage in the other place.

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[The Economic Secretary to the Treasury (Andrew Griffith)]

It is always a pleasure to follow the hon. Member for Ealing North (James Murray). Today of all days, our thoughts are with the Ukrainian people. To that end, I also extend my thanks to the financial sector, which, through the provision of basic bank accounts, has ensured that more than 70,000 people and families who have come and made their home here are able to receive income, send money and pay for goods.

I congratulate the hon. Member for Preston (Sir Mark Hendrick) as his Bill reaches this important milestone. Its aims are as laudable as his long-standing advocacy for the sector. I also thank my team of officials, on his and the House’s behalf, for their work on taking this important reform forward—Joshua Grey, Logan Cuthbert, Lucy Alawi-Yates, Emma Kavanagh, Alanna Barber and Harriet Hill.

We are all aware—this has frequently arisen in discussions about this Bill—of the UK’s special place in the history of the mutual movement. We heard that again this morning from many hon. Members of this House, including my hon. Friend the Member for Aylesbury (Rob Butler). My hon. Friend the Member for Stoke- on-Trent Central (Jo Gideon) raised the Burslem and District Industrial Co-operative Society. My hon. Friend the Member for Buckingham (Greg Smith) reminded us of the importance of the co-operative movement in the free market movement, and mentioned the Buckinghamshire Community Energy co-operative and the Brill village community herd. We cast new eyes on my hon. Friend the Member for Dewsbury (Mark Eastwood) as we look at him as the man from the Co-op, come to collect, not spend his penny.

We have heard of how communities came together over a century ago, pooling their resources to meet their shared needs and face their common challenges. The hon. Member for Preston, of course, appreciates the unique history and impact of mutuals, not least because of the constituency he represents. The north of England is widely recognised as one of the birthplaces of the modern co-operative movement. It was in 1844 that a group of 28 artisans working side by side in the Rochdale cotton mills first came together. Their objective was to consolidate their scant resources so that they could assure access to better quality food and goods that their community had been excluded from.

The Rochdale co-operative movement was based on principles of openness and democratic control—one member, one vote. In that way, the 28 Rochdale pioneers shared in the profits that their custom generated, and triumphed over the poverty that had been blighting skilled workers at the time.

This is part of our shared UK history, and there are even earlier examples of self-help co-operative organisations lifting communities above their common challenges. The Fenwick Weavers’ Society was the result of a collective decision by a group of weavers in Fenwick, Ayrshire, to form a society. The group’s 1761 foundation charter sits in the National Library of Scotland. Its formation was a response to a period of rapid flux for the textile industry in the mid-18th century, and its members came together to set a fair price for their work and guarantee a sustainable future for their trade.

Today the nation, communities and people face different challenges, having come through a global pandemic while a war in Europe rages on and inflation, although coming down, continues to make everyone poorer. That is why our Prime Minister has set this Government five clear challenges, the first of which is to halve inflation in order to give respite to businesses, ease the cost of living for households and give people financial security. The second is to grow the economy, and in doing so to create better-paid jobs and spread opportunities across the length and breadth of the country. That is doubtless at the heart of the co-operative movement. Fourth, fifth and sixth are to cut our national debt, to cut NHS waiting lists, and to pass new laws to stop small boats so that ordinary workers in this country get the fair deal that they deserve.

As Members will know, the first seed of the original mutual movement lives on in our modern mutuals sector, which consists of diverse, commonly owned and democratically controlled enterprises that exist to provide vital services to their members—a genuinely diverse part of our wonderful United Kingdom financial services sector. According to one recent analysis, the UK mutual insurance sector served 32.3 million policyholders and collectively employed 26,400 people in 2021. Another form of mutual organisation that continues to thrive and deliver value to society is the co- operative, which, as we have heard today, operates across all industries and in many constituencies including my own, in sectors from farming to retail to housing. Owned and controlled by members close to them—whether they are workers, shoppers, suppliers or co-residents—co-operatives give people a stake in how they are run. Analysis by the trade body Co-operatives UK found that this sector was worth nearly £40 million to the UK economy in 2021.

Because of their ownership model, mutuals are uniquely invested in doing right by their members rather than in gaining short-term profit at all costs. That makes them key partners in many of the Government’s policy priorities, such as the financial inclusion agenda that is so important to me. It is no coincidence that financial mutuals lead the way in many of the low-cost product offerings, such as affordable healthcare solutions or investment products at price points that—if not quite a penny a week—encourage the financial participation of a broader swathe of society.

Modern mutual banks, invested in the success of their local economies, are able to leverage locally based decision making to ensure that their services reflect the needs of the communities they serve. They are a real asset in our mission to level up and spread economic activity across the regions. I would like to see more mutual organisations of every type, and I am very open to proposals such as those in the Bill, which the Government are proud to support. I am very open to ways in which we can tailor our regulatory structure to promote the growth and, indeed, the new formation of mutuals across our financial sector. This is a real form of diversity.

Mutuals are a big deal in the here and now. In many cases they rest on the legacy left behind by others—the successive generations of memberships who paid into the pot, as the hon. Member for Preston reminded us. They did so on the presumption that that surplus would be held in common, without personal entitlement, to support their peers in times of need, for the betterment of society and for future generations. That is why I have always been receptive to the view expressed by Members on both sides of the House that these funds should remain in mutual hands for the purposes originally intended.

I support actions to secure our mutuals heritage, which is why the Government are pleased to support the hon. Member’s Bill. The Bill applies to co-operatives, friendly societies and bodies corporate that carry on the business of mutual insurance, and it aims to equip those mutual entities with a stronger option in law, an asset lock, to restrict the use of surplus funds for their chosen purposes. By permitting a stronger lock in law for those entities that wish to adopt it—and I am sure many will—the Government aim to provide the sector with an additional deterrence against demutualisation.

[Rob Butler]

Will my hon. Friend say a little more about the significance and importance of the opt-in, as opposed to compulsion?

[Andrew Griffith]

My hon. Friend, as well as being a doughty champion for the co-operative movement in general, is right to emphasise the voluntary element. It is right that those membership organisations that wish to use the lock have the architecture within the Bill to do so, but it is not the business of Government to interfere with the strategy, desire or, in some cases, need of those in the mutual sector to consolidate or raise capital through other means by taking all those options off the table with a mandatory asset lock.

That approach is typical of this Government. My hon. Friend will understand, as an experienced man of business, that our principle is to allow people to regulate and conduct their affairs in the way they feel best serves their needs. As he knows, we have heard very clearly that the mutual sector likes this architecture and will benefit from it. In that context, it is right for the Government to support the Bill.

Non-domicile Tax Status

Rob Butler Excerpts

Tuesday 31st January 2023 Commons Chamber

[James Murray (Ealing North) (Lab/Co-op)]

I beg to move,

That there be laid before this House, no later than 28 February 2023, a copy of the Treasury analysis related to the effect of the abolition of the non-domicile tax status on the public revenue referred to by the Chancellor of the Exchequer in evidence to the Treasury Committee on 23 November 2022 together with any other document or analysis relating to that matter prepared for the Chancellor’s consideration since 14 October 2022.

Today, 31 January, is of course the last day for people across the country who pay taxes by self-assessment to file their returns and make any payments. In a very small number of cases, those tax returns will have been submitted by people who are claiming tax benefits because of their non-dom tax status. That loophole is well known to some of the current occupants of Downing Street; indeed, some of them may still have that status and hope to benefit from it again in future.

The loophole allows a small group of high-income people who live in the UK to avoid paying tax on their overseas income for up to 15 years. It is a status that can be passed down through people’s fathers. It costs the public finances £3.2 billion a year and it fails to support economic growth in the UK. It is a 200-year-old loophole that should have no place in our modern tax system.

[Rob Butler (Aylesbury) (Con)]

If it is such a long-standing loophole, as the hon. Gentleman describes it, why have successive Labour Governments not abolished it?

[James Murray]

We are debating the importance of a fair tax system for the future of this country. This Government have sat on non-dom tax status for months and years. We are questioning why this Prime Minister is not heeding Labour’s calls to abolish the non-dom tax status once and for all, and spend the money on the NHS, childcare and a growing economy.

When the Government are making working people pay more tax, it is simply wrong to allow wealthy people with overseas incomes to continue to benefit from an outdated tax break. It is also bad for UK business. The loophole prevents non-doms from being able to invest their foreign income in the UK, as bringing it here means that it becomes liable for UK tax. That is why the shadow Chancellor, my right hon. Friend the Member for Leeds West (Rachel Reeves), first set out our party’s position last April—four Conservative Chancellors ago. She confirmed that, in government, Labour would abolish the non-dom status as part of our reforms to create a fairer tax system for working people. We will abolish that indefensible 200-year-old tax loophole and introduce a modern scheme for people who are genuinely living in the UK for short periods.

Labour believes that, if a person makes Britain their home, they should pay their taxes here. That patriotic point should be accepted on all sides of the political divide, yet Ministers in this Government, under this Prime Minister, seem desperate to defend the non-dom loophole. What is it about the current Prime Minister that makes him so reluctant to abolish non-dom tax status? The Government are increasing taxes on working people, businesses are struggling, and our NHS is in crisis. Yet the Conservatives defend a small number of rich people who use non-dom tax status and offshore trusts to wriggle out of paying taxes here in Britain.

We know that the Prime Minister understands how non-dom tax status works—he can hardly claim ignorance on that—so how can he possibly justify it? How do Conservative MPs look their constituents in the eye and tell them that their taxes will keep going up, while the taxes of non-doms must always stay down? It is indefensible, and that is why the next Labour Government will act by abolishing the non-dom tax status.

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[Rob Butler (Aylesbury) (Con)]

I rise to speak against the motion on the Order Paper. It is important that we recollect what that is. It says that Treasury analysis of a potential tax policy should be laid before the House two weeks before the Budget. Having listened very carefully to the previous four speakers from the Opposition Benches, I do not recall any of them actually addressing that point. That is surely because the Opposition know full well that no Government could publish pre-Budget advice, for the simple and straightforward reason that Budget announcements are market sensitive. No Government of any colour have ever published that sort of advice. Those on the Opposition Front Bench know that full well and they know that, if the situation were reversed, which, hopefully, it never will be, they would not publish it, either. It is important that the public understand exactly what has been put on the Order Paper by the Labour party, which has brought us here today.

This Conservative Government are absolutely committed to a fair tax system, ensuring that the UK attracts talented people to work and do business here and, at the same time, generating tax revenue that pays for our public services. That was brilliantly set out by my hon. Friend the Minister. It is, of course, vital that our tax regime is competitive and that talented entrepreneurs overseas see the UK as a country where their risk taking will be rewarded and where their commitment to developing their business will bring jobs to British people, strengthening our economy and generating in turn more tax that will pay for more public services. It is a virtuous circle.

Let me be clear that I am not in any way suggesting a blank cheque or a free ride for non-doms. I absolutely accept that non-dom status should not be permanent and I am pleased that we have already moved away from that. I absolutely agree with my hon. Friend the Member for Amber Valley (Nigel Mills) that there is scope for further reform, but that should be considered calmly and rationally.

Let us remember that non-domiciled individuals already pay tax on UK income and gains. They also pay tax on foreign income and gains if those moneys are brought into the UK. We have heard of some £8 billion in UK tax contributed in 2021 alone. I also made the point, when I intervened on the shadow Minister right at the beginning of the debate, that successive Labour Chancellors tried to reform the system and gave up, because they realised it was not the easy panacea that those on the current Labour Front Bench would have us believe. Even Ed Balls has said that abolishing non-dom status would probably end up costing Britain money, because some people would leave the country.

I make those points because it is important that, when we consider headline-grabbing ideas, we take the time to look behind the headlines and think carefully about all the implications of a policy proposal. I know that is exactly what my right hon. Friend the Chancellor is doing as he prepares his Budget, listening to ideas and weighing up their implications.

[Anthony Browne]

My hon. Friend is making a powerful and important speech. Does he agree that the reason why the Labour party is focusing on this issue so much in this debate and during Prime Minister’s questions is that, while we are the party of aspiration, Labour is the party of envy and is just trying to play class war?

[Rob Butler]

I have no alternative but to agree with my hon. Friend—otherwise, what on earth is the point of having this discussion? We believe in aspiring, striving and achieving and we then believe in paying our fair share of tax, which generates the public services that we value so highly.

As I was saying, the Chancellor is currently weighing up what are the best policies to stimulate growth. Of course that involves raising tax revenue, but we need to do so in a way that does not stifle the potential for economic growth in this country. There are plenty of people giving him advice on how to do that, including some of my constituents, and even me.

I believe that there are plenty of changes we could introduce. I would like us to look at the cap on private pensions; doing so would enable us to get more people in their 50s remaining in work or returning to the workforce. Some dub that current tax a doctor’s tax, because it creates a strong disincentive for doctors to work extra shifts—doctors, the very healthcare workers the Opposition are so keen that we should support. I agree that we should support them, so let us make a tax regime that creates the opportunity and potential for them to want to work more.

There are other taxes that also impede free markets—stamp duty land tax could be considered one of those—but this is not the place to consider the detail of all that. Nor is this the place for the publication of Treasury analysis on the effect of the abolition of non-dom tax status on public revenue, because of the time, just before a Budget, when the Labour party is suggesting it should be done. Let us instead focus on the real, pressing needs of our economy for our constituents: driving opportunities for growth, building a skilled workforce, creating jobs and so generating revenues that will support our public services for many decades to come.

Autumn Statement

Rob Butler Excerpts

Thursday 17th November 2022 Commons Chamber

[Jeremy Hunt]

What I can tell the hon. Gentleman is that families in the UK, including families in Scotland and in his own constituency, will get an enormous amount of help this year and next, including if they are on the lowest legal wage, the national living wage, with an increase in their income of up to £1,600. If they are on means-tested benefits, they will get an increase of £900 and if they are a pensioner they will get the triple lock increase of £870. I could go on. The autumn statement knits together as a statement designed to help people on low pay, including in the public sector.

[Rob Butler (Aylesbury) (Con)]

The Chancellor has rightly reminded us that the economic challenges we face are driven primarily by global events, especially Russia’s invasion of Ukraine, and that has necessitated the difficult and painful decisions that he has had to make. He emphasised the need to continue to invest in infrastructure. That is especially important in Aylesbury, where there is a massive amount of house building and we desperately need link roads to alleviate traffic congestion and improve air quality. Within the budgets that have been approved, will my right hon. Friend enable Buckinghamshire Council to have as much flexibility as possible to deliver those roads, which are so essential for our town’s sustainable growth?

[Jeremy Hunt]

I thank my hon. Friend for his advocacy for Aylesbury. My basic view is that we should give as much flexibility as we can to local authorities to deliver local infrastructure projects, and significantly more than they currently have. I hope to come forward in the months ahead with ways to progress that. I will write to him on the specific issue of a link road.

Delivery of Public Services

Rob Butler Excerpts

Tuesday 28th June 2022 Commons Chamber

[Mr McFadden]

I had anticipated one or two interventions on strikes, so let me say to the right hon. Gentleman that whoever’s responsibility the strikes are, it is certainly not that of a party that has been in opposition for 12 years. He and the Ministers he supports will have to take responsibility for the industrial strife they are presiding over. I say that to him in the anticipation of other interventions in the same vein.

[Rob Butler (Aylesbury) (Con)]

Will the right hon. Gentleman give way?

[Mr McFadden]

That is my answer to all interventions on the issue, so let me proceed.

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[Mr McFadden]

Not at the moment.

I am grateful for the Prime Minister’s candour on economic growth. That is a very important admission, because without good economic growth the country is less prosperous, the fiscal position is weaker—in fact, it is weaker to the tune of some £40 billion a year compared with the pattern of economic growth we had in the first decade of this century—and people’s wages are lower by thousands of pounds a year. We know that people are paying higher taxes due to the Government breaking their manifesto pledges, but let us see what they are getting for their money.

It is often said in this place that the first duty of Government is to protect their citizens and that justice delayed is justice denied. Both those statements are true, so let us look at what is happening with access to justice. Victims of crime have a right to expect a trial in a reasonable amount of time after that crime has been committed. In the year before the pandemic—I repeat, before the pandemic—the number of cases awaiting trial at Crown courts grew by 23% to more than 40,000.

[Rob Butler]

Does the right hon. Gentleman think that the backlog in the courts will be lengthened or shortened by barristers going on strike?

[Mr McFadden]

I refer the hon. Member to the answer I gave some moments ago.

As I have said, the number of cases grew by 23% to over 40,000 before the pandemic, and that number now stands at 57,000. For magistrates courts, the number is 364,000. The typical wait for a case of robbery to come to court is two years, and for rape it is often three years. No wonder that in a recent sexual offences case that had been delayed for more than three years the presiding judge, Patrick Thompson, branded the delays “absolutely farcical” and said:

“How this is justice is beyond me.”

He is not alone in his judgment. These delays leave victims without redress and without justice and with the crime that they have suffered hanging over them. They are not just a symptom of the pandemic: we must remember that in the year before the pandemic the number of cases awaiting trial had grown by 23%.

--- Later in debate ---

[Mr Clarke]

My hon. Friend makes an important point. The performance of the Welsh Government in this area is genuinely concerning, but this also demonstrates a point about fundamental fairness. This debate is sometimes mischaracterised as everything being this Government’s fault, but as we have heard from the hon. Member for Caithness, Sutherland and Easter Ross (Jamie Stone), the performance of the Scottish healthcare system is blighted by many of the challenges that we are facing in England. Clearly there are also problems in Wales and significant problems in Northern Ireland. What matters is that we set out a clear plan to deal with them.

Our NHS elective delivery plan states that by next month no one will be waiting more than two years for elective care, except where patients choose to wait longer for some reason, and in a number of highly specialised areas.

We know that considerable progress has been made in achieving that target. The number who have waited two years or more in acute hospitals has fallen by 15,000 to 6,700, down from a peak of 22,500 in January. At the same time, the Government are on track to deliver our manifesto commitment for 50 million more primary care appointments by 2024. GP appointment numbers have already recovered to pre-pandemic levels, with 25.3 million taking place in April, of which 1.3 million were covid vaccinations.

The motion also mentions court dates, where we are also making good progress. We are providing almost half a billion pounds to address criminal court and tribunal backlogs.

[Rob Butler]

The shadow Chief Secretary was reluctant to give me a straight answer to my question, so I wonder whether the Chief Secretary would tell me whether he believes the strike by barristers will lengthen or shorten the waiting times in our courts. Does he think strikes by public service workers more generally will do anything to help our economy and our recovery from the covid pandemic?

[Mr Clarke]

I thank my hon. Friend for his substantive question, and there was a certain reticence from the shadow Chief Secretary to answer it. The public will look in consternation at barristers striking when there is an offer on the table of a £7,000 a year pay increase for that profession. It comes down to a test of values: if they are serious about tackling the backlog in our courts, they should get to work, accept the pay offer and move forward. It would be helpful if the official Opposition, rather than looking at their feet or their phones, would get on with the job of persuading public service workers that the best interests of the public and those workers themselves lies in accepting reasonable pay offers, moving forward and not further gumming up public sector delivery by taking unnecessary strike action.

We are providing some half a billion pounds to address criminal court and tribunal backlogs. We have also extended 30 Nightingale courtrooms to help manage complex cases that would otherwise crowd out cases that are easier to answer. We are also investing £200 million to complete the £1.3 billion court reform programme. Reform is making our courts more modern, with a wide range of new online services to make the courts more efficient—this includes rolling out a new digital platform to manage 1.5 million annual criminal cases.

Finally, on airport delays, the reality is that we are seeing disruption globally in the travel sector as it is reopening, at pace, after almost two years of being shut down during the pandemic. Anyone who has seen the scenes recently at Schiphol or Dublin will recognise that, fundamentally, this is an international challenge. Where possible, the Government are supporting our aviation sector to manage the risk of disruption this summer. That includes using our post-Brexit freedoms to provide the sector with more flexibility when training new employees; working with Border Force to ensure preparations meet passenger demand; and allowing HMRC employment history letters to be used as a suitable form of reference check. Last week, we also laid regulations before Parliament that will help airlines prevent last-minute flight cancellations during the summer peak by allowing a one-off “amnesty” on airport slots rules.

While we are working around the clock to help people get on with their daily lives, the Labour party has, once again, chosen to side with its trade union paymasters and join the picket lines. During the pandemic alone, we delivered some £16 billion of emergency funding to keep the railways running, which is equivalent to £600 for every family in the UK. That level of subsidy is unsustainable and shows why reform is needed now, but instead of working together to achieve the reforms we need to make the railways fit for the future—and it is eminently achievable and fair, and really important—Opposition Front Benchers have backed the strike action and joined the picket lines. Those strikes have stopped people from getting to work, created additional stress for students taking exams and created untold problems for patients needing treatment. The shadow Front Benchers wish to form a Labour Government, but through their actions it is clear that a Labour Government would be content to see the country brought to a halt by militant union leaders. On this issue, the Opposition have displayed no leadership whatsoever.

I said that I would come back to the issue of inflation, and how the Government are addressing it. As the Chancellor told the House last month, we have three key tools at our disposal: independent monetary policy, fiscal responsibility and supply side reform. We have every confidence that the independent Bank of England will take decisive action to get inflation back on target, with it having averaged precisely 2% over the last 25 years. Our second tool is responsible fiscal policy. We know that any fiscal support we provide must be timely, targeted, and temporary, to avoid making the situation worse, by causing inflation, and interest and mortgage rates, to go up further than they otherwise would.

We are also taking an active approach to supply-side reform through initiatives such as the energy security strategy, which will reduce bills by increasing energy supply and improving energy efficiency; moving 500,000 jobseekers off welfare and into work; doing more to support older people back into the jobs market; and making our visa regime for high-skilled migrants one of the most competitive in the world.

The Opposition have no plan to tackle inflation. If they support double-digit, inflation-busting pay rises for public sector workers, do they accept the inflationary effect that will have? Does the shadow Chief Secretary accept that that would lead to higher and more prolonged inflation, hammering the incomes of more vulnerable households? How does Labour propose to pay for inflation-busting pay rises? Every Labour spokesperson who refuses to answer those questions—and they all do—is ducking questions that are fundamental to the running of our economy and our society. The public will draw their own conclusions.

We understand that growing the economy sustainably into the future is by far the best way we can support families in the long term. That is exactly why we will continue to invest in capital, people, and ideas, so that we can boost productivity and improve living standards. It is why we will cut the burden of taxation as we move out of the shadow of the pandemic over the years ahead. In his February 2022 Mais lecture and in the spring statement, the Chancellor spoke about his plans to create the conditions for private sector growth by supporting a culture of enterprise. Together, our plan for growth and our tax plan represent an ambitious strategy for boosting growth and productivity. By contrast, the Opposition call for a “new approach” to the economy. It is not a new approach: it is the same old Labour—uncosted spending, higher borrowing and a surrender to hard-line trade union bosses at every turn, every time. This Conservative Government will not make those mistakes. We will stick to our plan, make responsible choices and guide our country through difficult times to better days ahead.

Oral Answers to Questions

Rob Butler Excerpts

Tuesday 7th September 2021 Commons Chamber

[Rishi Sunak]

I am always happy to look at what more we can do to improve the transparency of our statistics. However, with regard to kickstart in aggregate, I would just say that there have been 50,000 starts and, when compared with previous versions of similar schemes such as the future jobs fund under the last Labour Government, kickstart is delivering more young people into more jobs at a much faster pace and, importantly, many more of those jobs are in the private sector, not just the public sector.

[Rob Butler (Aylesbury) (Con)]

7. What fiscal steps he is taking to invest in new infrastructure.

[Gareth Davies (Grantham and Stamford) (Con)]

11. What fiscal steps he is taking to incentivise businesses to invest in new infrastructure and equipment.

[The Chancellor of the Exchequer (Rishi Sunak)]

The Prime Minister is rightly ushering in an infrastructure revolution because infrastructure drives growth and productivity and creates jobs. We are doing that with over £100 billion of investment this year and, thanks to the efforts of the Financial Secretary to the Treasury, a world-leading UK Infrastructure Bank created and set up in Leeds.

[Rob Butler]

Does my right hon. Friend agree that all parts of the country can benefit from investment in infrastructure, and that an excellent way of achieving that in my constituency, in support of the substantial housing development there, would be to approve funding for the Aylesbury link of East West Rail, which would also help to achieve our target of net zero?

[Rishi Sunak]

My hon. Friend is absolutely right to focus on making sure that our investment reaches every part of the country, including his constituency. I am pleased to tell him that £760 million has been allocated by the Chief Secretary and the Transport Secretary to deliver East West Rail, and I understand that the Department for Transport is currently working with the East West Rail Company to figure out the best possible way to serve Aylesbury. I hope that my hon. Friend will engage with that process.

Commission on Race and Ethnic Disparities

Rob Butler Excerpts

Tuesday 20th April 2021 Commons Chamber

[Kemi Badenoch]

If the hon. Lady has a comprehensive proposal about that, she can write to me and we will consider it in the light of the Government response.

[Rob Butler (Aylesbury) (Con) [V]]

I served on the Youth Justice Board with the chairman of the Commission on Race and Ethnic Disparities, Dr Tony Sewell. My experience was that he always acted with integrity and that he had the courage to challenge the conventional wisdom when he found evidence to suggest an alternative perspective. Does my hon. Friend share my abhorrence at how he and his fellow commissioners have been vilified, abused and threatened? Does she share my concern that such a response risks putting off other people from carrying out important work that can help to improve our society for all communities?

[Kemi Badenoch]

I completely agree with my hon. Friend and I thank him very much for telling us about his personal experience working with Dr Tony Sewell. I believe that Keith Fraser, one of the other commissioners, is also a member of the Youth Justice Board. One reason why I believe there has been much push-back against the report is that it has not come from the usual suspects. We did not go to the race relations industry to ask people to tell us the same things they have been telling us for a long time; we went to people who work in the field such as doctors, teachers, policemen, scientists, economists and journalists—including, I might add, a former chair of the Runnymede Trust—to find out what we can do to improve disparities in this country.[Official Report, 22 April 2021, Vol. 692, c. 5MC.] We went to the people who actually had the experience in doing things rather than just talking, and I am very proud of the commission and the work it has done.

Covid-19: Ethnic Minority Disparities

Rob Butler Excerpts

Monday 1st March 2021 Commons Chamber

[Kemi Badenoch]

I thank my hon. Friend for the question, and for the opportunity to reiterate what I said to the hon. Member for Battersea (Marsha De Cordova). Of course racism exists; no one in this Government has ever denied the existence of racism. In fact, I have spoken about my personal experience, as did the Home Secretary at this very Dispatch Box—and 30 Labour MPs, including the hon. Lady, dismissed the Home Secretary’s experiences as gaslighting. However, we will not assume that every issue experienced by ethnic minorities is caused by racism without looking at the evidence. We develop solutions based on where the evidence leads, unlike Labour, whose report in October recommended that we decolonise the curriculum to address covid-19.

There is a legitimate debate to be had on how we tackle racism and address ethnic disparities, but although our means of achieving these goals may differ, that should in no way undermine our shared commitment to building a fairer and more cohesive society. Let me be clear to those who have either misunderstood or deliberately choose to misrepresent what the Government have said: this Government condemn racism, an evil which has no place in a civilised society.

[Rob Butler (Aylesbury) (Con) [V]]

Aylesbury mosque is working extremely hard to spread accurate messages and dispel fake news about the vaccine, both at Friday prayers and on its Facebook page. Will my hon. Friend join me in thanking the Aylesbury mosque committee for these efforts and for showing this leadership, and does she agree that faith groups have a crucial role to play in telling the truth and encouraging take-up of the vaccine across all parts of our community?

[Kemi Badenoch]

My hon. Friend is absolutely right, and I add my thanks to the Aylesbury mosque for its vital work in promoting vaccine uptake. Working with religious leaders and other respected local voices to promote vaccine uptake among ethnic minorities is key to ensuring that we reach all parts of the community. As I mentioned, the NHS has now opened 47 vaccination sites in places of worship and community centres across the country, and it is fantastic to get feedback from local MPs on how this is going.