Spending Review 2020 and OBR Forecast

Sammy Wilson Excerpts

Wednesday 25th November 2020 Commons Chamber

[Rishi Sunak]

As ever, my right hon. Friend speaks fantastically good sense. He is right; we will need to return to a sustainable fiscal position, not least to build resilience for the next crisis or shock that comes along. We want to be able to react in the same comprehensive and generous way that we did this time, and that requires us to have a strong set of public finances going into it.

My right hon. Friend is right about the Restart programme, which will help, we hope, around 1 million of those who are long-term unemployed; it will be an exciting and ambitious programme. The Institute for Employment Studies has spoken very well about the evidence in favour of that type of high-quality, individual work-focused approach making an enormous difference in getting people back into work. If we can do that, we can reduce some of the long-term scarring that they will face. So I have high hopes for what that programme can achieve.

[Sammy Wilson (East Antrim) (DUP)]

I first welcome the £900 million that will be available to the Northern Ireland Executive, which is a reminder to the people of Northern Ireland of the economic security that we have as a result of being part of the United Kingdom. The Barnett consequentials for Wales and Scotland should also be a reminder to the people there of the benefits of the Union.

May I ask the Chancellor one thing about the levelling up fund, the infrastructure bank and the shared prosperity fund? When will he have the details of access to those, and can he assure us that the access to all those funds will be equally available to different parts of the United Kingdom?

[Rishi Sunak]

I can give the right hon. Gentleman that assurance. Those are UK-wide programmes and we hope to have more details about the infrastructure bank in the spring, so that we can get it up and running, at least in shadow form, as quickly as possible and make a difference to communities all around the United Kingdom.

Lockdown: Economic Support

Sammy Wilson Excerpts

Tuesday 3rd November 2020 Commons Chamber

[Steve Barclay]

I agree with my right hon. Friend that we need to ensure that the economy is able to bounce back quickly. That is why we have provided over £13 billion of support to the self-employed, which by international comparisons—I know my right hon. Friend looks at international comparisons—he will see is extremely generous. I have set out previously in the House part of the operational difficulties, for example with owner-directors in terms of what is dividend income and what is not. The point is that we have set out a generous self-employment income support scheme, but we need to deliver that operationally in a way that meets the tests set by, for example, the Public Accounts Committee, which has asked whether we have the right level of controls in place, given the speed at which these schemes were deployed.

[Sammy Wilson (East Antrim) (DUP)]

The latest ill-advised lockdown is going to present an enormous burden for the economy in terms of lost tax revenue, additional Government spending and reduced GDP. It is right that since the economic pain is being imposed by the Government, those affected should be compensated for the pain that they will suffer. I welcome the Chief Secretary’s assurance that the furlough scheme will apply across the whole United Kingdom, but can he tell us what Barnett consequentials will be received by Northern Ireland, Scotland and Wales for the business support grant that he announced in this package?

[Steve Barclay]

The right hon. Gentleman raises a valid and fair point. As I said on my call with the First Minister yesterday, I hope to be in a position to update her this week about the additional Barnett guarantee that we can give. The right hon. Gentleman is right to point to the consequentials that flow from the £1.1 billion of additional local authority funding that the Chancellor set out. He will also have seen, for example, the additional support that the UK Government gave to Transport for London, the rail support measures that we have provided, and so on. Those are the issues on which the Barnett consequentials will be shaped. He is right that it is important for them to have sight of that. That is why we have taken the unprecedented decision to give that up-front guarantee, and I hope to be able to give an update on that later this week.

Public Health Restrictions: Government Economic Support

Sammy Wilson Excerpts

Tuesday 13th October 2020 Commons Chamber

[Steve Barclay]

In some ways, that is slightly more of a Health question than a Treasury question, but I recognise that there is read-across from those businesses into the economy. In short, the opinion of the chief medical officer and the chief scientific officer is that those businesses do carry significantly more risk, which is why they have been harder hit in the guidance that has been issued. The package of support that the Chancellor set out recognises that businesses that are closed need additional support, which is why the measures announced by the Prime Minister and the Chancellor yesterday spoke exactly to the issue of businesses that have been closed due to the guidelines.

[Sammy Wilson (East Antrim) (DUP)]

The wisdom and necessity of some of the restrictions introduced yesterday have been questioned by leaders of cities in the north of England, by businesses and by the workers who are going to be affected, so it is right that the Government should introduce a package of support for businesses that are forced to close. However, there are many businesses that have not been instructed to close, but which will be forced to because of the restrictions placed on them. For example, the hospitality industry faces curfews, restrictions on table numbers and on who can sit at tables, and so on. How does this package of support assure those businesses that they are not going to be killed off by the restrictions that have been placed on them? They have been put in the firing line, yet seem to have been left without any level of support at all, given the conditions attached to this economic package.

[Steve Barclay]

The right hon. Gentleman speaks to an important issue, which was at the heart of the job support scheme’s design: recognising businesses that are not in closure, but which have difficulty bringing people back full time. The scheme provides support. The employer pays the first third, and the remaining amount is split three ways, with the Government supporting. Additionally, there is the wider package of measures, including support to local authorities to get better compliance, which is in the interests of businesses. The £1 billion to local authorities, the £500 million for local test and trace services, the business loans and the tax deferrals are all targeted at the sector that the right hon. Gentleman is talking about: businesses that can still trade and are not closed, but which do face further pressure. The winter plan sets out that support.

Oral Answers to Questions

Sammy Wilson Excerpts

Tuesday 15th September 2020 Commons Chamber

[Jesse Norman]

I am very grateful for the suggestion. Now that the right hon. Gentleman has placed it on the public record, I will ask my officials to look more closely at it and to engage with him on it. He will know that we have already introduced, in a quite different context, a digital services tax. We are open to these potential ideas. We will be looking very carefully at this area. Intelligent and well thought through feedback is always of great interest to us.

[Sammy Wilson (East Antrim) (DUP)]

What discussions officials from (a) his Department and (b) HMRC have had with businesses in Northern Ireland on potential additional costs for exporting goods to Great Britain from Northern Ireland under the withdrawal agreement.

[The Financial Secretary to the Treasury (Jesse Norman)]

The Government have been actively engaging with businesses and fully committed to providing them with the information and support needed to prepare for the end of the transition period in Northern Ireland. As was set out in the Command Paper, the Government’s position is that there should be no additional process, paperwork or restrictions on Northern Ireland goods arriving in the rest of the UK.

[Sammy Wilson]

While I welcome the provisions of the United Kingdom Internal Market Bill debated yesterday, they do not cover the issue that the EU is demanding that goods coming into Northern Ireland have tariffs imposed on them until it is proven that they have not left Northern Ireland and gone into the EU. This is damaging to business, because it requires additional paperwork, will affect cash flow, and will put up costs. Given that the Government are committed to keeping Northern Ireland in the UK customs union, that the Act of Union says that there should be no tariffs on trade between countries within the United Kingdom, and that 75% of goods do not leave Northern Ireland once they enter anyhow, will the Minister give a commitment to ensuring in the Finance Bill that the EU demand for those tariffs to be collected will be removed so that Northern Ireland businesses are not disadvantaged?

[Jesse Norman]

As the right hon. Gentleman will know, these topics are currently very live matters of discussion between this country and the EU, and I am not going to comment on that. However, we are, as a Government, very engaged with this issue across a number of different Departments, and we will be looking to support the principles and positions set out in the protocol as we go forward.

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[Rishi Sunak]

My hon. Friend makes an excellent point and I thank her for it. She will know that some of the interventions we have already put in place last through into next year, for example the removal of the need to pay business rates for businesses in hospitality, which has been particularly affected. She may be reassured to know that we recently introduced the new business support grant for businesses forced to close as a result of local lockdown, where the Joint Biosecurity Centre gold command has instituted that measure, and those grant payments will be available up to £1,500 per few weekly cycles.

[Sammy Wilson (East Antrim) (DUP)]

  The aviation industry is on its knees: airports are deserted, planes are grounded and travellers are frustrated. In large part, the plight of the industry is due to the inconsistent, illogical and contradictory policies being followed by the Government to attack coronavirus. Will the Chancellor consider what actions he can take to support this vital industry, which we depend on for our connectivity, by either reducing or suspending air passenger duty, or through targeted job support?

[Rishi Sunak]

The right hon. Gentleman is absolutely right to highlight the importance of the aerospace industry to our economy. It is, in common with aerospace industries across the globe, suffering a deep depression in demand for all the obvious reasons. He can rest assured that we engage regularly with the companies in that sector. In particular, to support their future success, we are investing heavily in R&D alongside those companies to make sure we remain on the cutting edge of advanced manufacturing capability.

Economic Update

Sammy Wilson Excerpts

Wednesday 8th July 2020 Commons Chamber

[Rishi Sunak]

I thank my right hon. Friend for his kind support and also his advice. He is of course absolutely right, and I hope that he was heartened by what he heard me say in the statement about the importance of returning our public finances to a sustainable footing in the medium term. We can and will do exactly that. He is right to highlight the sensitivity of our debt to interest rates, which was why he was right to introduce into our fiscal framework the notion of an interest service rule, and that is something that I will look at keenly in the coming months.

[Sammy Wilson (East Antrim) (DUP)]

I welcome the announcements that the Chancellor has made today to undo some of the economic damage caused by the actions taken to deal with the health crisis. I echo his point that these measures benefit places such as Northern Ireland only because we are part of the fifth biggest economy in the world and we have the umbrella of the UK to protect us against these economic crises. I am sure that the hospitality industry will welcome the measures that he has announced today, although they are quite time-limited. Clothes shops might welcome similar measures as well, because once we have eaten our way through a month’s half-price meals, we might need to visit them!

Other sectors that are important to Northern Ireland in terms of their export potential, high-value jobs, tourism and connectivity with the rest of the United Kingdom are the aerospace and aviation sectors, but there has been no mention of those sectors today. The Chancellor has said that these are the first of his steps, so I hope that we will quickly see some action taken to deal with those areas.

[Rishi Sunak]

I am grateful for the right hon. Gentleman’s support. Perhaps alongside the “eat out to help out” scheme, we can make progress on reopening our gyms, to deal with that side of the equation at the same time. He is absolutely right to suggest that airlines and aviation are experiencing a difficult period. I remain in close contact with the industry and with individual companies to understand what is happening, and if there are things that we can and should do, of course we will.

Finance Bill

Sammy Wilson Excerpts

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

[Bridget Phillipson]

Amendments 18 and 19 would require the Treasury to conduct a review of the digital services tax within a year of Royal Assent and to report to Parliament on the tax annually thereafter with a specific consideration of the effect of this measure on taxation revenue.

We welcome the introduction of the digital services tax, although this support is qualified. The Minister will be well aware that we like to be thorough even with proposals that we broadly welcome. It is deeply disappointing that it has not been possible to reach multinational international agreement, hence the need for this unilateral approach. This Government should demonstrate much more leadership in pressing for international efforts to tackle this scourge. Ensuring that companies that operate across national borders pay the tax that they should requires us to co-operate, to lead, to persuade, to negotiate and to set an example.

More troubling is the fact that, in the crisis we are living through today, when ambitious and decisive action is demanded of Government, Ministers have only managed to put forward such a modest measure, when other countries are willing to go further. Many of the companies that will be affected by this tax are the same ones that will have benefited from the impact of covid-19. Before the pandemic struck, they were the beneficiaries of an uneven playing field, while much loved high street businesses struggled.

Local firms and UK chains have faced a real battle competing with companies that base themselves overseas, do not have the same overheads as physical shops and go to great lengths to minimise their tax liabilities. The impact of lockdown has only exacerbated this tension. It has provided an unexpected boon to tech giants, which have managed to rake it in as demand soars and business is directed online. Meanwhile, our high street businesses, which were already struggling, have only seen their worries increase as footfall has understandably plummeted.

Even with the easing of lockdown, there is a real challenge ahead in ensuring the continued success of our bricks-and-mortar retail sector. If shoppers will not venture on to our high streets and the Government fail to provide an effective test, track and isolate system, many businesses that are just starting to open up will soon be forced to close their doors again, perhaps even permanently. These businesses are the bedrock of our communities. They help create a sense of place, and are often a lifeline for older and vulnerable residents and for those in more isolated communities. Government must do more to ensure that there is a level playing field, and that those who have benefited the most from this situation—as I have noted, those that have not exactly paid their fair share in the past—make more of a contribution to the national effort.

[Sammy Wilson (East Antrim) (DUP)]

Does the hon. Member accept that not only is it right that the Government intervene to ensure that taxes are paid on a level playing field, but that, at a time when public finances are under pressure, we should not be allowing large firms to escape paying the tax revenue that is due and should be paid?

[Bridget Phillipson]

The right hon. Gentleman is absolutely right, and I sincerely hope that the Minister will respond to that point, because we have seen this unfairness built into our system. We recognise that this measure takes some steps towards levelling the playing field, but we need to see much more from Government in clamping down on the kind of tax avoidance that we have seen far too often in recent years, because it is not right.

--- Later in debate ---

[Mr Mitchell]

Yes, the extractive industry transparency initiative, which has been led by a former Member of this House, Clare Short, for some time, did a huge amount of good as, of course, have open registers, because open registers have continued that agenda of transparency. As I said at the outset, this agenda was championed and driven forward internationally through the British at the G8.

[Sammy Wilson]

I agree with all the points that the right hon. Gentleman has been making. Does he accept that unless we can dig behind the accounts to see where companies, for example, inflate costs in countries where they can get lower tax rates and deflate costs in countries with higher tax rates, a tax strategy in itself is simply not going to ensure that we get behind how companies avoid paying tax in the countries where they earn the profits?

[Mr Mitchell]

There is an important principle: while commercial confidentiality should not be compromised, we should move to greater transparency to tackle the problems that lie behind what the right hon. Gentleman is saying. I agree with that and I think that there is common cause across the House that that is what we want to do. Clearly, getting a multinational standard will be the right result, but these things have to be led.

In summary, the new clause is part of the noble campaign that is supported across the House, to shine a light on the profit shifting, transfer pricing and tax haven abuse that is used to minimise tax liabilities. The House has already voted in favour of public country-by-country reporting through an amendment to the Finance Bill in 2016, which gave the Treasury the power to make the information public. My right hon. Friend the Financial Secretary will no doubt rely on the prayer of St Augustine, “O Lord, make me chaste, but not yet,” and argue that the UK would not want to implement this reform unilaterally, and he has already acknowledged, in a letter to the right hon. Member for Barking (Dame Margaret Hodge) dated 27 February this year, that a multinational agreement to do country-by-country reporting would be a good achievement, but I put it to him that that is too timid an approach.

As we contemplate Britain’s role post Brexit and we set out what we mean by global Britain, let my right hon. Friend stand tall, show leadership internationally, and follow the proud, confident example of David Cameron and George Osborne. Let global Britain lead by example, to the huge benefit of our domestic taxpayers and taxes, and for those in the poorest countries, whose mineral wealth is so often developed without their citizens reaping the benefits they should receive and that they deserve. This reform would be in the finest traditions of Britain’s past international development leadership, and I commend the new clause to the House.

Covid-19

Sammy Wilson Excerpts

Monday 11th May 2020 Commons Chamber

[Sammy Wilson (East Antrim) (DUP) [V]]

May I, on behalf of my party, express our sympathies to those who have lost loved ones during this health crisis, and to those in the health service who have, manfully and womanfully, worked hard to ensure that lives are saved?

We welcome the Government’s measures, and the announcements made in the Chamber today and by the Prime Minister last night. It is, of course, very difficult to balance the economic needs of the country with the imperative to safeguard people’s health. With hindsight, many people might criticise some of the things that the Government have done, but I believe that the decisions that were taken have had success in reducing the death toll and helping many businesses to survive, and we welcome many of the measures to be introduced.

I believe that dealing with the virus and how we get out of lockdown should be approached on a UK-wide basis. Of course there are going to be different nuances and conditions in different regions of the United Kingdom. For example, in Northern Ireland we have a different school year from other parts of the United Kingdom, so some of the education measures may well be different. The peak of the virus is also different in different regions, so that may lead to different timings. Nevertheless, a UK-wide approach is important.

A number of Members have already mentioned the fact that we share a common border with the Irish Republic. Surprisingly, despite the Good Friday agreement and the emphasis that the Irish Government have placed on it, at every step of this crisis they have not consulted the Administration in Stormont. When they had the lockdown, they did not consult. When they relaxed some of their measures, they did not consult. They are even taking a different approach to quarantining people who come in from outside Ireland and would eventually finish up in the United Kingdom. I think it is important that we have a UK-wide approach. We appreciate the co-operation that there has been on a weekly basis with the Administration in Stormont by Westminster.

Looking forward is the important thing, because many businesses are concerned about what happens when the lockdown stops and this situation finishes. We see a number of issues. First, there has to be no cliff edge, but a tapering of the job retention scheme, which has been so vital to ensuring that workers have some money on which they can live and that employers do not have to lay off vital workers and then have to recruit them again.

Secondly, various sectors of the economy have been hit far more than others. Tourism in Northern Ireland is an important sector of the economy, and it will take some time for it to ramp up. It is important that we look at sectoral support.

Thirdly, many companies have already taken on additional debt through the bounce back loans and the coronavirus business interruption loan scheme, but they are debt-heavy, and there needs to be some reconsideration of how that leverage is reduced and debt replaced with equity. The banks have an important role to play in that, and I hope the Government will work with the banks. It is important that we work our way out of this together. I will finish, because I see you are rising to your feet, Madam Deputy Speaker.

Economic Update

Sammy Wilson Excerpts

Tuesday 17th March 2020 Commons Chamber

[Rishi Sunak]

I can confirm to my hon. Friend that the loans available already will be available to those who are self-employed and that many of them, those who do have small properties, will benefit from the business rate reliefs and grants too.

[Sammy Wilson (East Antrim) (DUP)]

My party also wishes to work with the Government on ensuring that we get through this crisis as easily as we can. Redundancies are already starting across a range of industries in Northern Ireland. It is important that if the Chancellor is coming with the next step, it addresses the issue of how we keep people in employment and how firms are supported. I understand that he wants to get this right, but he also has to get it done.

[Rishi Sunak]

I can tell the right hon. Gentleman that we will get it done, we will do it at pace and we very much agree that it is important to protect people’s jobs. That is the security we want to provide.

Oral Answers to Questions

Sammy Wilson Excerpts

Tuesday 11th February 2020 Commons Chamber

[Rishi Sunak]

I am a passionate believer in improving east-west connectivity across the north. I am pleased to say that I met the leader of Bradford Council just the other week. Bradford has an exciting future as one of the younger cities in the country. I believe that the plans that NPR has put forward include Bradford. We are happy to look at those. Transport for the North is actively engaging with local stakeholders on the various routes for improving connectivity between Manchester and Leeds, and that includes Bradford city centre.

[Sammy Wilson (East Antrim) (DUP)]

What progress has been made on the feasibility study on a bridge between Northern Ireland and Scotland, as promised by the Prime Minister? More immediately, have there been any discussions with the Scottish Government on the upgrading of the A75—an important road link to Northern Ireland and important to the economic corridor in south-west Scotland?

[Rishi Sunak]

The Prime Minister is passionate about improving connectivity across the United Kingdom. As my right hon. Friend the Member for East Antrim (Sammy Wilson) will know, that is one particular project that the Prime Minister has expressed interest in and he can assume that we are busy at work fleshing out what it might look like.

Motorhomes and Vehicle Excise Duty

Sammy Wilson Excerpts

Tuesday 21st January 2020 Westminster Hall

[Ruth Jones]

Absolutely, and the hon. Gentleman makes that point very clearly. I will come on to the importance of staycations in this country now.

[Sammy Wilson (East Antrim) (DUP)]

Does the hon. Lady agree that because motorhomes are used on average for only 31 days each year, a tax of £70 a day is not likely to produce the kind of result that she is talking about?

[Ruth Jones]

Absolutely, and the right hon. Gentleman must have read my speech because I will come on to that very point later.

What happens to staycationing locations across the UK that will lose income and tax revenue because of these proposals? Have the Government completed any studies on this issue? What do they propose to do for people who lose their jobs in the tourism sector because of this arrangement?

We know that staycations stop people from getting on planes, which damage our air, or taking cruises, which damage our marine ecosystems and pollute our waters. So, by holidaying at home, we see lower levels of greenhouse gas emissions and thus less pressure is put on our environment.

The increase in taxation is already having a significant impact on the staycation industry. Unlike the car industry, the motorhome sector saw modest growth year on year up to September 2019, when it recorded a fall of over 7%. That was the very month that the increase came into effect.

I would like the Minister to explain why the Government are penalising 15,000 motorhome-owners, who all contribute to our domestic tourism industry and only use their motorhomes for leisure purposes for about 30-odd days a year, as we have already heard. The policy cannot be about reducing air pollution levels, because if it was, the Government would have a more thought-through and logical approach.

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[Sammy Wilson]

Does the Minister accept that it is not the percentage of the purchase cost that is important but the running costs per year? If a vehicle is being used on the road an average of 3,000 miles a year, a duty of more than £2,000—nearly 60p or 70p a mile—is a substantial increase in its running costs.

[Mr Clarke]

The right hon. Gentleman raised the issue with me in the House at Treasury questions. He is obviously very committed to ensuring that we look at it again. Of course, VED is a one-off expense that is paid at the point of purchase; it does not accrue to the running costs per se. The way in which we tax that is through fuel duty. If someone drives more miles, they will pay more fuel duty. That is the real correlation and link. However, I recognise that, if people do not use the vehicles a great deal during the course of any given year, VED represents a substantial one-off cost in the first year of operation.