(3 years, 8 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.
Each Urgent Question requires a Government Minister to give a response on the debate topic.
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There are many potential problems, but those problems have been methodically thought through. As I say, they range from administrative issues that the right hon. Gentleman refers to, right through to freight transport issues, including our securing back-up plans if commercial transport is not available or we have issues of pinch points on the key transit routes. In addition to that, and in addition to the phased approach to the border that is being taken next year, we have also, for the first few weeks, put additional measures in place to really try to ensure that there are no delays and no snarl-ups on those key freight routes.
I refer to my entry in the Register of Members’ Financial Interests.
My right hon. Friend is right, of course, to observe that it is in everybody’s interests that there should be a deal, and that uncertainty is damaging for everyone. Will she bear in mind that that is particularly acute for the people of Her Majesty’s territory of Gibraltar? Will she ensure that they, above all, as we have responsibility in these negotiations, are not allowed to become collateral damage? Will she also undertake to ensure that the Government of Gibraltar are kept fully informed of all developments and every assistance is given to ensure that whatever the outcome, there is a smooth and flowing land frontier and the delivery of essential services for Gibraltar?
I agree with all the points that my hon. Friend has made. I can assure him, from my involvement in the negotiations and keeping our partners informed, that all those issues with regard to Gibraltar are absolutely at the heart of our negotiating position. I thank him for raising that on the Floor of the House today.
(3 years, 8 months ago)
Commons ChamberAs my hon. Friend the Member for Kensington (Felicity Buchan) will be aware, the Government have taken unprecedented steps to support the self-employed during this crisis, and that includes through the self-employment income support scheme, which has been extended up to April, with details of the third grant published last week.
We of course recognise the concerns that my hon. Friend raises. We should be clear that the purpose of this extension is not simply to allow borrowers to request a 10-year term. It is that the guarantee offered by the Government on these schemes should be extended up to 10 years where lenders deem that a forbearance tool that borrowers may need and benefit from. My colleagues are working at pace with the British Business Bank to implement the policy in line with state aid rules.
Does my right hon. Friend accept that self-employed people and freelancers—many of whom are formed as limited companies, not because they choose to but because they are required to do so by the agencies or contractors they work for or by insurers—continue to fall through the net? Would it not be a good idea for him to meet directly some of those who work in these sectors? I suspect that many of those who advise him in the Treasury have no understanding of how self-employment actually works.
As my hon. Friend will be aware, I have a history of being closely involved with the performing arts sector. As I have indicated, I will be meeting many of the groups representing people in this situation. He should be aware that, in addition to the £1.57 billion culture recovery fund, the Government have put in place the film and TV insurance scheme, to which more than 150 applications have been made so far. The Government do and continue to take these issues extremely seriously.
(3 years, 9 months ago)
Commons ChamberI would point the hon. Gentleman to the phase 2 consultation that is currently outstanding of our future regulatory framework review. The key purpose of that review is to ensure that our regulatory regime, after we leave the transition period, is fit for purpose. It will take into account a wide range of inputs from stakeholders, and I would urge him and his small businesses to feed into it.
I particularly welcome the Chancellor’s recognition that our financial services are critical not only to our national interest, but to the long-term funding of our public services. Against that background and with a shared objective of maintaining the position of the sector in its pre-eminence, will he confirm that, while we have set out our own equivalence decisions, we will continue to seek, wherever possible, the closest agreement and alignment with the EU, which remains an important market, and that the door is not closed upon that; and, secondly, that as we develop the very welcome proposals for a new regime for listings, a new regime to deal with the investment funds and also with the overseas persons regime, he will not hesitate to draw on the very real expertise that exists—particularly in the City, but elsewhere—for example, through the International Regulatory Strategy Group and the Financial Markets Law Committee?
My hon. Friend has long been a fantastic champion and advocate for this sector, and he is right to be so. I agree with him about the importance of making sure that our listings regime is as competitive as it can be to make sure that we attract companies to list here in London. I look forward to getting input from him and the bodies he mentioned in the forthcoming review that we have commissioned.
(3 years, 9 months ago)
Commons ChamberMy hon. Friend has unrivalled expertise and tenacity in bringing these matters before the House. He is right that there is a challenge to examine the relative regimes for different sized banks and institutions. That is something that regulators, subsequent to this Bill, will need to look at—indeed, they are keen to look at it—and I would welcome my hon. Friend’s further interventions in discussions in this place as we move forward on that legitimate question.
Eight years ago, the world was shocked by the LIBOR scandal. As the House will recall, traders at multiple banks attempted to manipulate that crucial benchmark, which contributes to interest rates for everything from complex derivatives to mortgages. Since then, significant improvements have been made to the benchmark’s administration. However, the Financial Stability Board, an international body that monitors and makes recommendations about the global financial system, has stated that continued use of LIBOR and other major interest rate benchmarks poses a serious source of systemic risk. That is because the decline in the inter-bank lending market has meant that such benchmarks depend increasingly on the judgments of panel banks rather than actual transactions. UK regulators have been encouraging firms to gradually shift away from LIBOR and are at the forefront of the global response to the transition, so to ensure that that transition was orderly, the FCA agreed with the LIBOR panel banks that they would continue to contribute to the benchmark for a temporary period. However, that temporary period will expire at the end of 2021, and after that point there is a risk that the benchmark will become unrepresentative of the market that it measures, potentially leading to disruption.
While we want firms to take the initiative in migrating from LIBOR, we recognise that there are some contracts that cannot be realistically amended to achieve that goal, so clauses 8 to 19, along with schedule 5, will give the FCA the powers that it needs to oversee the orderly wind-down of critical benchmarks, including LIBOR, and clause 20 will extend the transitional period for benchmarks with non-UK administrators from the end of 2022 until the end of 2025. This will avoid difficulties for our firms while the Government consider any changes required to our third country benchmarks regime to ensure that it is appropriate for the United Kingdom.
I will move on to the second objective of the Bill: to promote openness to overseas markets. I am delighted that clauses 22 and 23, along with schedules 6 to 8, establish a framework to provide long-term market access between the UK and Gibraltar for financial services firms. As many will know, Gibraltar boasts an array of thriving businesses in the sector, many of which are UK household names, including Admiral and Hastings, to name just two. The new Gibraltar authorisation regime in this Bill delivers on an earlier ministerial commitment and recognises our long-standing special relationship.
I refer to my entry in the Register of Members’ Financial Interests. May I say, as chair of the all-party group on Gibraltar, how delighted I am to see this in the Bill? I know that that is echoed by Her Majesty’s Government of Gibraltar and the whole Gibraltar community. The Government have made good on a promise and it is very welcome. The Minister is right to set out that some 20% of UK insurance contracts are written by Gibraltar-based insurers. Will he undertake that, as well as this important piece of legislation, we will now build on it with his colleagues in other Departments to develop a full free market—a free-trade area effectively—between the UK and Gibraltar in services and goods?
My hon. Friend is absolutely right with that 20% statistic and to point to the extensive orientation of the Gibraltarian insurance industry towards the UK. Ninety per cent. of the business that it writes comes to the UK. He is right to say that this is foundational to a deepening relationship, and I will ensure that Gibraltarian firms can continue to access the UK market on the basis of aligned regulation and supervision. I look forward to listening to him, as we move forward, on further steps that he thinks would be appropriate.
The proposals will guarantee close co-operation between our regulators, and this measure highlights the spirit of openness that underpins our approach. The same can be said of clauses 24 to 26 and schedule 9, which make up the overseas funds regime. These measures will simplify the process under which overseas investment funds are marketed in the UK. Under the present system, the FCA has to assess the protection standards of every individual fund before allowing it to be offered to UK consumers. However, the Bill will allow the Treasury to give market access to entire categories of funds from other countries that have so-called equivalent regulatory standards to those in the UK. Funds in this group can then undergo a simpler application process, due to the confidence provided by their home regime, which will allow overseas investment funds to be marketed in the UK, maintaining the UK’s position as a global centre of asset management. There are currently over 9,000 funds that passport into the UK from the EU, and let me stress that the existing process will remain for funds that have not been declared equivalent.
I am grateful to the Minister for correcting me. Of course, my figure of 20% related purely to motor insurance policies; it is 90% for all Gibraltar-based insurance. Can he help me on the specific point of the overseas funds regime? It is widely welcomed in the sector that he will allow access for overseas funds that have not yet achieved equivalence, but can he help give some clarity on a matter that is of concern to some providers? What is the position if people have invested in the fund and for some reason equivalency is withdrawn? What would then happen in practical terms if, for example, additional money is invested in the fund after suspension? Can he help as far as that is concerned? It is important for many people.
It would not be for me at this point to set out the deductions to be made on individual funds, but I would like to follow up with my hon. Friend formally on that matter, because a process is under way for that to be examined, and I am happy to engage with him further in due course.
I will move on to the importance of ensuring that the FCA has an appropriate degree of oversight over firms that could register under the regime. To my hon. Friend’s point, there is a tension between the objectives set in Parliament and the regulators’ judgment on the ground. We need to ensure not only that they are accountable, but that we have set the right prescription for the outcomes we wish to see.
(3 years, 9 months ago)
Commons ChamberWhat I say to Hannah and Hettie is that if they are registered for business rates themselves, they will be eligible directly for one of the business grants of up to £3,000 for every month that they are closed. We found that many traders in covered markets were not registered for business rates, which is why previously we provided discretionary funding to local councils specifically to deal with such examples as the hon. Lady has raised, so I hope that, if Hannah and Hettie are not registered for business rates, the local council followed the guidance and was able to provide them with support. We are now providing £1 billion of discretionary support to local councils, so I hope that the council can provide support to the hon. Lady’s constituents.
This is a welcome package from my right hon. Friend, particularly in relation to the self-employed, but I hope we will look again at some of the detail of the exclusions and definitions in the self-employed scheme—things like the definition of trading profits and other matters that exclude some people.
Will my right hon. Friend also look at the position of the private and corporate events sector? Currently, businesses in the sector fall into a gap because they have not qualified for business rate relief because they sell food not directly to the public but through their clients, and they have not qualified for VAT relief on similar grounds. Such businesses are a critical part of the sector, worth many millions of pounds to the economy and employing some 600,000 people. Will my right hon. Friend look at what specific help they can be given?
I am always happy to hear suggestions from my hon. Friend, particularly on improvements to technical language or drafting and guidance. If he has some suggestions, I look forward to receiving them soon.
(3 years, 10 months ago)
Commons ChamberI refer the hon. Gentleman to my answer to the hon. Member for Rhondda (Chris Bryant). We have taken the approach of providing up-front funding guarantees to devolved nations, worth £14 billion currently, and we will update and review those regularly. In all ways, dealing with these demand-led schemes is difficult, which is why we have taken this approach, which is generous and better at providing up-front funding to devolved nations.
The Chancellor’s measures will be welcomed by the hospitality sector in London, although I hope he might have a word with the Health Secretary about the point of a 10 pm curfew if it is members of a family dining together. Will he look carefully at support for the events sector? As he knows, that sector supports not only private events but many large corporate events. We have a great number of those of the highest quality in London. There are thousands of jobs and millions of pounds of turnover involved here, but because these businesses do not serve food directly to the public from their production kitchens, they have not so far been able to benefit from the business rate relief scheme. Can we look at those loopholes that they have been falling through?
I thank my hon. Friend for his comments. Where the guidance is not clear on businesses that are legally required not to open but not legally closed and therefore do not benefit from some support, we are actively looking at that and ensuring that we can fix it. Events and exhibitions are one of the VOA categories that will be included in the hospitality and leisure calculation that we use for the tier 2 grants I have announced today. More generally, the best thing we can do is try to open up more travel and, as time progresses and we can do more testing, to get life back into that sector by allowing it to get on with what it wants to do, which is to put on a fantastic events.
(4 years, 7 months ago)
Commons ChamberYes—I am pleased that my hon. Friend has asked me that. We are absolutely committed to that deal; indeed, we want to go further. The automotive sector is one of our most important sectors, responsible for much of the growth and many of the jobs in our economy. It will certainly get the Government’s strong support.
Let me briefly address an important question for the future of our economy: our future relationship with the EU. We are leaving the EU, its single market and the customs union. We are seeking an ambitious, Canada-style free trade agreement. In doing so, we will be a sovereign and independent country, not a rule taker, so yes, some things will change. It is a new chapter. We are ambitious for British businesses, through a close relationship not only with the EU but with other partners. Some 90% of global growth is expected to come from outside the EU over the next decade, so there are real opportunities for the UK. We will maintain high standards not because we are told to, but because that is what the British people want. Above all, we will be driven by British interests.
I welcome what my right hon. Friend is saying, but will he bear in mind in particular the need to protect the interests of the financial services sector, as Britain is a world leader in financial services? It is right that so large a sector would not necessarily be a rule taker, but does he recognise that we need better than the current equivalence regime, to make sure that we maximise access for our world-leading financial services?
I agree absolutely with my hon. Friend and will come to that topic in just a moment.
The foundation of our new economic plan is fiscal responsibility. It has taken a decade of hard work by the British people to turn our public finances around. The deficit has fallen from 10% of GDP in 2010 to just 1.8% today. We are not going to throw that away. We were elected on a platform to manage the public finances responsibly, so it is a matter of trust, as well as economic credibility, that we deliver on that promise to the British people. We will be bound by a credible new fiscal framework that will keep our borrowing and debt under control while allowing for new investment in levelling up and spreading opportunity throughout the country. At the Budget, I will publish a new charter for budget responsibility that will give effect to those rules, and the Office for Budget Responsibility will scrutinise our performance against them.
Thanks to the hard work of the British people, we have got that deficit down, and debt is under control. We can now afford to invest more in levelling up and spreading opportunity right across our country. The first step will be our national infrastructure strategy. Better infrastructure can boost people’s earning power by making it easier to find work. It can help businesses access new markets. It can help us thrive and grow. It can boost communities and places and improve standards of living. It is simply not good enough that we have fallen behind so many other countries on infrastructure, and the Government are going to fix that.
If a week is a long time in politics, three months must be an absolute age. It has been three months since I last spoke in an economy debate on the Queen’s Speech, and what a lot has changed in this Parliament. I have to say that I like this Parliament an awful lot more than I liked the previous Parliament. I am aware that there have been some wonderful maiden speeches in these Queen’s Speech debates, and I look forward to hearing more maiden speeches today, but I particularly enjoy the speeches from Members who represent areas that have never before elected a Conservative MP. I would like to take this opportunity to thank the good voters of West Worcestershire for returning me to this place.
I welcome the measures outlined in this Queen’s Speech, and I am very pleased that they have a much greater chance of being enacted and put on the statute book than when we last had the opportunity to debate them. My hon. Friend the Member for North Dorset (Simon Hoare) asked the shadow Chancellor for his analysis of why the awful diatribe we heard from the Opposition Dispatch Box earlier did not resonate with the British people and lost the Labour party seats at the last general election. The shadow Chancellor simply said it was Brexit. Well, I am going to give him some free advice on some of the other things that I think led to that performance. First, we clearly had a much better manifesto. It was much more fiscally responsible and much more credible to the British public. As the shadow Chancellor said, we also had a much clearer and united approach to Brexit as a party, and that certainly was another factor. Clearly, we also had much better leadership, and that came up time and again on the doorstep.
A point that has not been made as frequently, however, is the one about our economic track record. We would never believe it—would we?—when we listened to that woeful speech of woe from the shadow Chancellor that we have actually just enjoyed an uninterrupted decade of economic growth in this country. We would never believe it when we heard that speech from the shadow Chancellor that we actually have record employment—record full employment almost—and particularly for full-time workers. And we would never believe it when we heard that speech from the shadow Chancellor that we actually have the lowest percentage of people in low-paid work in our economy than we have ever had before in history. That economic track record made a real difference going into the general election.
One thing that has not changed since I last spoke in a Queen’s Speech debate on the economy regards additional clarity for a sector that is important to our economy: the financial services sector. My hon. Friend the Member for Bromley and Chislehurst (Sir Robert Neill) raised that issue earlier, and I wish to ask about it again. Financial services are an important sector for our economy. It is our biggest export sector, and it employs well over 2 million people, not just in the City of London, but across the whole UK—indeed, two thirds of jobs in the financial sector are based outside the M25.
When I was Economic Secretary to the Treasury, I had the pleasure of seeing those jobs not only in my constituency of West Worcestershire and the west midlands but in Glasgow, Edinburgh, Belfast, Newcastle, and Leeds. Right across the UK and down to Bournemouth or Cardiff there are important and well-paid jobs in the financial sector. As a result, about £1 in every £10 of tax revenue comes from financial services, which is huge. As we leave the European Union, it is important that we get things right for that sector.
My hon. Friend makes an important point and I entirely agree with her. Does she agree that another strength and reason for the dominance of our financial services sector is that it is part of a hub, together with other key professional services that support it, such as law, accountancy and other services? As we leave the EU we must have a solution for all of those.
It is indeed the world’s global financial hub, as we saw today with the wonderful news coming from the UK-Africa Investment Summit. Tax revenues are important, and without that £1 in every £10 of tax revenue we would have 36 new hospitals instead of 40, and 18,000 police instead of 20,000. It is important to get things right with that major engine of tax revenue in this country.
I know that lots of Members wish to make their maiden speeches today, Madam Deputy Speaker, so in conclusion I ask those on the Front Bench to update the House on what they mean by “outcome-based equivalence”. If they are seeking something similar to a Canada-style free trade agreement, chapter 15 of which covers financial services, what will be the mechanisms for certainty and for businesses investing in the sector, regarding how quickly that equivalence could be contested or argued about? What will be the strategy for the FinTech sector and the UK being the best country in the world in which to locate a financial technology firm? What, if anything, will we have as a specific strategy on market access for businesses in the FinTech sector?
In reflecting on what has or has not changed from three months ago, I wish to repeat those questions to those on the Front Bench.
It is a pleasure to see you back where we always thought you should be, Mr Deputy Speaker.
During this debate, it struck me that we sometimes forget the fundamental: unless we get our economy right, none of the other social goods that we wish to achieve as a country can ever be delivered. The need, therefore, to concentrate on the economy in the Queen’s Speech is fundamental. Whatever our views on what has passed, the way in which we go forward over the next few years must be calibrated in such a way as to make sure that our economy remains strong and stable.
I mention the quality of the maiden speeches that we have heard and I particularly compliment my hon. Friend the Member for Loughborough (Jane Hunt), the last maiden speaker before me. Her predecessor is a good friend and colleague, and I know that she will be a worthy successor. Anyone who comes to this House from a local government background will find a friend and ally in me, because that is what I did. Perhaps the more people who have done that, the better, because local government leaves us rooted in the reality of our communities.
My hon. Friend the Member for West Worcestershire (Harriett Baldwin) talked in some detail about the importance of financial services, and I echo everything that she said, but I stress yet again the importance of recognising that as we leave the EU, it is clearly not likely to be appropriate that the largest financial sector in western Europe—arguably, in some respects, the largest in the world—should automatically be a rule-taker. Equally, we have to find a sufficient degree of alignment to ensure that we continue to have access to the key European markets, where we trade very successfully and where there is a benefit to the Europeans from the capital that we can provide. The proposed arrangements, were we to leave now, of a form of equivalence are, as the City of London Corporation and the Governor of the Bank of England have pointed out, variable, uncertain and not satisfactory for the longer term. We need our deal to be more ambitious than that so that we have certainty for those who wish to write their contracts here in London or elsewhere in the UK, because this goes well beyond London.
Financial services are part of a greater hub of professional services in which the United Kingdom excels. As well as making sure that we have arrangements that are satisfactory for the basic financial services—banks, insurers and others—we must still enable our legal services and accounting services, to give two examples, to trade successfully with Europe and elsewhere in the world. That is why, for example, in the legal services sector—I refer to my entry in the Register of Members’ Financial Interests—it is critical that we find both a means of ensuring the proper mutual recognition of qualifications so that British lawyers can continue with the fly-in, fly-out service that they provide for many of the multinational firms in Europe—as well as, I hope, elsewhere—without the need for requalification and, very importantly, a means of ensuring mutual recognition and enforcement of judgments of our courts.
At the end of the day, a contract is only as valuable as its ability to be enforced meaningfully. That is why the Law Society and the Bar Council are right to urge the Government to move swiftly to sign us up to the Lugano convention and to move, in our own right, into The Hague convention. They are not as good as the Brussels I recast arrangements, but they give us a means of ensuring that we have that, which we can then build on with good will. It is worth bearing in mind, too, that the Lugano convention would enable us to protect many small and medium-sized enterprises, consumers and individuals. Mutual recognition matters not just to big business, but, equally, to the small firm with a supplier in an EU state that defaults on its payments, in terms of getting their money back. It matters to the single parent whose partner, or former partner, may be in an EU jurisdiction, who is seeking to enforce their maintenance payment out there. Getting that right is in everybody’s interest on both sides of the debate, so I hope that we can do that and move on constructively.
Let me touch on an another important issue: why do people choose to bring their legal business to the United Kingdom? It is because they trust us as a clean, efficient and impartial jurisdiction. Our judges and lawyers are second to none. They are a benchmark that the world—not just in common law jurisdictions, the Commonwealth and elsewhere, but beyond—aspires to. I am conscious that we are looking at future arrangements for our constitutional matters, which is perfectly legitimate, but whatever we do, we must make sure that there is no suggestion of any diminution of either the quality or the independence of the British judiciary. I see no reason why there should be, but it is important to make that point.
I turn briefly to the question of access to justice, which my hon. Friend the Member for North West Durham (Mr Holden) mentioned in relation to legal aid. Access to justice is the other thing that underpins the integrity and reputation of our legal system. In the Queen’s Speech, we are rightly bringing forward a number of criminal justice Bills—some deal with policing and some with better, stronger redress for victims of crime. As a Government, we are rightly putting more money into policing and, where necessary, taking measures to increase sentencing for the most dangerous offenders.
That is all well and good—I entirely support all those measures—but to do that, we must have a system that is funded properly right the way through. If we rightly put more money into policing, that will mean greater work for the courts, the Crown Prosecution Service and, ultimately, our prisons and probation staff. If we are to do that, two things are necessary: first, there must be proper funding, because we cannot do it on the cheap, and secondly, we should take a nuanced approach.
Some people need to be kept inside for a long time—as a practising barrister over 25 years, I saw many of them—because they are a threat and a danger to the public. Equally, many others end up in our criminal justice system having made a mess of their lives at various points. By the time they end up in prison, they are very often well down the stream, and frankly, it is more a question of sadness and inadequacy than threat. We need to find better means of earlier intervention to stop those people being sucked into the system and permanent reoffending, and head that off, and equally, to find strong, robust alternatives. There is an economic, as well as a social, benefit in that: the cost of reoffending is about £18 billion a year.
It is right not just socially but economically to get our justice system right. I think that the Government recognise that. I therefore hope that we will see, building on what is in the Queen’s Speech, a holistic approach that recognises that economic competence and social justice go hand in hand. To my mind, that has always been the tradition of my party and this country.
(5 years, 4 months ago)
Commons ChamberI have met constituents and seen copious documentation that they have brought me that reinforces everything that has been said by every other hon. Member in the Chamber, in particular about the good faith in which people entered into these schemes, the lassitude with which Her Majesty’s Revenue and Customs originally pursued the matter, and the arbitrary way in which it acted thereafter. I endorse the calls for a pause to the scheme, for an independent inquiry and for the retrospective element to be removed. It simply is not just.
There is an old legal saying—perhaps you recall it, Madam Deputy Speaker—that he who comes to equity must have clean hands. The person who seeks the redress of the courts must have acted in good faith. I fear the Revenue has not acted in good faith in this matter, with my constituents or with taxpayers generally. There is an aggressive attitude towards tax collection that has gone beyond the bounds of fairness.
The other legal observation I make is that of Mrs Justice Whipple, who said in a Revenue case in 2015 that HMRC’s primary duty—to collect tax—is not
“a trump card which prevails over all other considerations.”
Instead, she said, it is
“a broad duty, exercised by means of a wide managerial discretion, within which is embedded the obligation to treat taxpayers fairly”.
My constituents, as taxpayers, saw years go by in which the Revenue had the opportunity to raise its concerns about these schemes with them but did nothing. Their bills therefore ran up, and then, suddenly, they were hit with arbitrary figures. They have not been treated fairly by the Revenue in this case, and we look to the Minister to put that right.
(5 years, 4 months ago)
Commons ChamberAs the hon. Gentleman knows, it is the Government’s policy to have an orderly exit from the EU. However, we know that FinTech has proved to be very resilient in all circumstances. We had record investment of £15 billion last year. That is testimony to the creative power of that industry, working in the financial services sector in the City.
I meet the Housing Secretary regularly to make sure there are sufficient funds in his budget to address the issues.
There is a particularly pressing need in the case of blocks such as Northpoint in Bromley, where the owner and the developer refuse to take responsibility, and intend to use legal powers to pass on the costs of aluminium composite material remediation to the leaseholders. That is a complete breach of the Government’s undertakings. We need a fund specifically to provide funds for this—directly to leaseholders, if necessary. What is the Minister doing to advance that issue?
I know that my hon. Friend has been in touch with the Ministry of Housing, Communities and Local Government on this issue. We fully expect building owners in the private sector to take action to ensure appropriate safety measures are in place. We have written to all owners to remind them of their responsibilities. In addition, local authorities have the power to complete works and recover costs from private owners of high rise residential buildings.
I observe that the minimum alcohol price in Scotland has resulted in an increase in the consumption of alcohol.
The Chief Secretary has said yet again that the Government think building owners should pick up the cost of aluminium composite material cladding remediation. Does she understand that there is no legal means of enforcing that obligation? In the absence of such a means, will she please revisit the issue of direct funding for the leaseholders as a matter of urgency?
I note that a growing list of companies, such as Barratt Developments, Mace Group Ltd and Legal & General, are doing the right thing and taking responsibility for paying for remediation. The Government urge all other owners and developers to follow the leads of those companies.
(5 years, 5 months ago)
Commons ChamberThe hon. Lady asks about when today’s business will return to the House. That will be a matter for the business managers and the usual channels in the usual way. She asks about the loan charge and, specifically, about those who would be impacted by it, and I can tell her that, of the £1 billion that has been received by HMRC via pre-loan charge settlements, some 85% of those settlements by value came from companies, rather than from individuals. HMRC will go for companies in the first instance.
The hon. Lady raises the issue of HMRC offices up and down the country. We are going through a transformation programme, as she will know, reducing the number of offices from 170, some of which had fewer than 10 staff, to produce 13 state-of-the-art hubs that will move our tax authorities into the 21st century, and so much more can be done through analysis, computers and intelligent interventions. I was privileged last week to visit our new office in Bristol, which will be the hub for the south-west of England. It is a truly stunning building that will house a state-of-the-art approach to tax collection.
The hon. Lady mentions Scottish limited partnerships and urges the Government to act. She will know that we have already taken action in that respect. The main point remains that we have been successful in keeping our tax gap as one of the lowest in the world, safeguarding and protecting some £200 billion of tax, which, let us not forget, is there for a purpose. Taxes support our vital public services, our doctors, our nurses, our brave servicemen and women, and our police force. We need that money, and that is why I am proud of our achievements in that area.
My right hon. Friend is right to say that the best approach is to get things right for the future, rather than to overemphasise enforcement of the past, particularly when people may well have acted in good faith when they received professional advice. That takes me to the loan charge and I will press the Minister on that. The Government accepted a new clause to the Finance Act 2019 relating to a review of the loan charge. For that to be meaningful, it must have an independent element and must be given time to do its work. Would not common justice indicate that the sensible thing for the Revenue to do would be to use its discretion to suspend the implementation of the loan charge against individuals until the review has been fully completed and its conclusions fully digested and debated?
During the passage of the Finance Bill, we committed to provide a report by 30 March, which is shortly upon us and, of course, is prior to the moment when the loan charge will come into effect, which is at the beginning of the coming tax year. My hon. Friend referred to whether individuals getting involved in such schemes knew what they were all about, but if something looks too good to be true and one ends up being asked for basically no or little tax, it probably does not work and that, I am afraid, is the case.