Treasury

Debate between Robert Goodwill and Gregg McClymont

Tuesday 21st December 2010 Commons Chamber

[Mr Goodwill]

I think I will just continue. I have a very detailed brief that I am sure my right hon. Friends the Chief Secretary or the Chancellor will put into a detailed response. Given the time, I cannot go into the issues in detail, but there are a number of tables that I am sure will reassure the hon. Member for Cumbernauld, Kilsyth and Kirkintilloch East. Suffice it to say, the work force and change plans are still being developed. Until those plans are completed, HMRC cannot say what the position will be on redundancies or exits.

[Gregg McClymont]

I thank the Minister for his response. From what he said, can I take it that the Department will write to me with the detailed figures? Is that the position?

[Mr Goodwill]

Yes, I am sure that that is the case. The first choice is to redeploy, but where that is not possible because of location or skills, exits will be used as a last resort. HMRC will recruit people if it cannot otherwise fill roles with people who have the right skills.

On the point about child benefit changes within a reducing settlement, the changes will be managed from within the settlement. Withdrawing child benefit from households with a higher rate taxpayer can be done within existing PAYE and self-assessment systems. HMRC will therefore not need to contact all 7.8 million households in receipt of child benefit. From a customer’s perspective, that delivery option does not place a burden on all child benefit claimants; it limits the impact to those households containing higher-rate taxpayers.

On the issue of whether the law is too black and white, I stress that tax evasion cannot be tolerated wherever it occurs. I was pleased that the Finance (No.3) Act 2010 closed a number of the loopholes that meant that people were not paying the tax that they should. To be fair, those loopholes were identified by the previous Government.

Much of the debate was focused on the banking system and I am sure that we all have had horror stories brought to our attention by our constituents. One of my constituents was in the Proudfoot supermarket making a purchase of about £5 and the checkout girl accidentally clocked up £50. That was corrected less than five minutes later, but it incurred an unauthorised overdraft fee and the bank refused to back down when contacted by me as the Member of Parliament. Fortunately, when I got the Yorkshire Post on to the issue it finally relented; such is the power of the press.

In response to the hon. Member for Streatham (Mr Umunna), the Government are clear that there should be more competition in the banking sector. The Independent Commission on Banking has been asked to consider reforms to the UK banking sector, including how to encourage greater competition. Following the commission’s report next year, the Government will bring forward specific proposals to foster diversity and increase competition, and I am sure that that will include a role for the mutual sector. I have nothing to add to the answer given by the Financial Secretary earlier, but I am sure that he will write to the hon. Gentleman following this debate.

On cheques, my hon. Friend the Member for Rugby (Mark Pawsey) raised the potential—