Finance Bill

Debate between Rupa Huq and Edward Leigh

Report stage & Report stage: House of Commons & Report: 1st sitting & Report: 1st sitting: House of Commons
Wednesday 1st July 2020 Commons Chamber

[Dr Huq]

My hon. Friend is so much more knowledgeable than me. Lots of my constituents cannot afford to buy their own home and are in rented accommodation, so that does not even apply to them. They are in beds in sheds—maybe I should not dob them in, but that is a phenomenon in the London Borough of Ealing.

Again, HMRC must accept responsibility for not communicating regularly with people. It could have acted sooner to avoid this sizeable group of people who went into these remuneration schemes having to pay back sometimes hundreds of thousands of pounds at a time. IR35 is being rolled out now, so the deferral is obviously welcome, because these things can be fixed in real time, as long as the deferral is not just pushing punitive measures further away. The Government need to urgently commit to a full review of tax reliefs.

While the debate is about job creation, I want to flag, as my hon. Friend the Member for Liverpool, Wavertree pointed out, that the global pandemic we are in seems to be a bit of a cover for certain companies to behave badly. British Airways and Virgin spring to mind as using the coronavirus job retention scheme—the clue is in the name—to do the very opposite. Having accepted furlough funds from the public purse, they are now using coronavirus as a cover for restructuring plans—plans they were always itching to execute—while they believe the eyes of the world are diverted elsewhere. I say to the Minister that we need a sector-specific deal for aviation.

The situation is the same for the creative, cultural and arts sector. I represent many constituents who work in it. Not for nothing was Ealing long-called a BBC borough. The Questors theatre—the jewel in our crown—is the biggest amateur dramatic venue in the country and it has written to me. It is about to go under. Its rateable value is too high to get any of the reliefs. That is another plea to the Minister.

We were told that, when we left the EU, we would be world-beating on employment rights, and that our rights could exceed those of the bloc after Brexit, but now, with IR35, we are heading for zero employment rights. The Government always said that this would not be a race to the bottom, so they need to put their money where their mouth is. There is nothing like a global pandemic to concentrate the mind. We have heard slogans such as, “We’re all in this together”. To stop all these Government utterances from being just hollow words, we need action. Snappy slogans are not enough.

[Sir Edward Leigh (Gainsborough) (Con)]

It is true that we find ourselves in a very serious situation. The number of workers on UK payrolls was down by more than 600,000 between March and May. Of course, the Government are attempting to redress the situation with the Business and Planning Bill and the Corporate Insolvency and Governance Bill. We also hope that we can end lockdown as soon as possible. Certainly, the Prime Minister is talking the talk in terms of build, build, build. That is all very good. We have infrastructure needs; let us meet them. There are no massive spending projects. The problem with them is that they are often hugely bogged down in cost overruns.

I want to say a bit about tax simplification. That is the genesis of this whole debate on IR35 and the loan charge. There is also our hugely ineffective, inefficient and long tax code—longer than India’s—and that is after 10 years of Conservative Government. I think that there is a new wind breathing through No.10, and I hope that we are going to be bold about tax reform. Are there any taxes that we can abolish completely or replace with simpler alternatives? We have created this massive tax avoidance industry, which has sucked many people with quite moderate means into its claws. Let me cite as one example, inheritance tax at 40%. We have to understand how people act. At a rate of 40%, most people are willing to make a significant investment to reduce the effectiveness of that rate. I am not condoning that behaviour, but if someone were left a million pounds and if the state said that it would take £400,000, they might begin to think that it is worth spending £40,000 or £50,000 on tax advice as a way of lessening their payment of tax. All sorts of complicated trusts and avoidance schemes are available to those who recognise that they can avoid paying tax. The result is less money for the Treasury to spend on the things that we need.

On this debate about the loan charge, it is natural that politicians should want to close down loopholes, but often, in closing down loopholes, we are affecting people of quite modest means. It is true that as a level of complexity involves means, those loopholes are usually available to those who have the resources to investigate them, but not necessarily. An entire industry has been created around how to lessen our tax burden, inheritance or otherwise, and I think that the Government are, in a way, responsible for this kind of behaviour. The people who have taken advantage of these tax loopholes, often of modest means, are simply reacting to our hugely complex tax codes. Taxes need simplifying and they need lowering. I make that point because I hope the Minister will say something in his summing up about this. I hope that he tells us that the Government have an agenda, otherwise we will go on having these debates over and over again. Every time a new loophole is discovered, people will take advantage of it, often with the wrong sort of advice. Then the Government have to close the loophole, creating injustice, which we have heard all about in this debate.

Gender Pricing

Debate between Rupa Huq and Edward Leigh

Tuesday 2nd February 2016 Westminster Hall

[Dr Rupa Huq (Ealing Central and Acton) (Lab)]

It is a pleasure to serve under your chairmanship, Sir Edward, and an honour to follow the right hon. Member for Basingstoke (Mrs Miller), who served with distinction as Minister for Women and Equalities. I congratulate my hon. Friend the Member for Dewsbury (Paula Sherriff) on securing this important debate. She made her name with the tampon tax, which made waves even if it did not quite get legislative change, so let us hope that such change will result from today’s debate.

I agree with everything that has been said. This is an example of everyday sexism. As my hon. Friend pointed out, it hits from babyhood to old age. There are so many examples. It is a great hidden gender swindle perpetrated by the retail trade, which has spotted an opportunity that many of us do not notice because someone would have to be quite diligent to do the comparison every time.

In 2016, we have been led to believe that gender barriers are dissolving and eroding in many areas, but there are examples of price differentials from toys to toiletries and even in clothing. A white T-shirt for a man in Tesco’s F&F range costs a lot less than the woman’s equivalent. It just seems wrong that products for her are much higher priced than the equivalent for him. The Times’ research found that the differential can sometimes be 37%, which is quite a lot, and the total cost of that can rack up over a woman’s life, and yet it happens without anyone noticing.

There was a disagreement over whether tampons and sanitary products were luxury items. This is not about those Yorkie bar wrappers saying, “It’s not for girls!”, which make my blood pressure rise—I am off Yorkies now. The issue will never be one of those things that is emotive in the same way as “Made In Dagenham” and the Equal Pay Act 1970 or the suffragettes, about whom a film was also made recently, because it happens without our noticing. It is not totemic in the same way. When shopping, the relationship is usually between value and quality, but here it has been subverted by gendered commodities. It seems strange to have two different versions of a product. Surely a razor is a razor and a pen is a pen, no matter the gender of who uses it. At Boots—I think—eight women’s razors cost £2.29, but it is £1.49 for 10 men’s razors. It makes no sense at all. If it is true that Boots has bowed to pressure, that is good news.

The campaigning has been thoroughly modern. The Fawcett Society started a petition that was spearheaded by Stevie Wise of Middlesex University and gathered some 35,000 signatures. This has happened a few times on women and equality issues recently. A constituent of mine ran a petition that achieved nearly 4,000 signatures, protesting that none of the 70 composers on the A-level music syllabus were women, and there has now been movement on that. When the new draft regulations for A-level politics come out, I think we will see that feminism has been reinstated in some form. The petition for that received nearly 50,000 signatures. It is a thoroughly modern, bottom-up way of campaigning that has led to Boots caving in. I said that I would be brief, but I just want to agree and commend my hon. Friend for her initiative. There are things that can be done.

Counterintuitively, in America, capitalist land of the free, they are more progressive than we are. The New York research that was mentioned earlier led to retailers sitting down around the table. We should be doing the same, including with Amazon and other online retailers, even if we think that their tax arrangements are a bit too friendly and they seem to be able to pay what they want. In fact, in New York they have rent control as well. I know that that is not pertinent to the subject of the debate, but on some of these issues, counterintuitively, the Americans have got it right. Surely we can catch up.

I hope that the Minister will have some good news. We thought that progress was being made on women’s equality. After all, at Prime Minister’s questions at the end of last year, the Prime Minister declared to me across the Dispatch Box that he is now a feminist. He needs to put his money where his mouth is and do something, because it seems like women are viewed as cash cows. One might say that we can vote with our wallets, but, as the right hon. Member for Basingstoke said, how many people are really going to make the comparison all the time? It happens beneath the radar. It often seems like we are sleepwalking into discrimination. We have anti-discriminatory legislation in this country—introduced by Labour Governments—so this rip-off needs to stop.

[Sir Edward Leigh (in the Chair)]

We come to the only other man present.