Loan Charge

Sarah Green Excerpts

Thursday 18th January 2024 Commons Chamber

[Sarah Green (Chesham and Amersham) (LD)]

I start by thanking the right hon. Member for East Antrim (Sammy Wilson) for securing this important debate, and by acknowledging the many thousands around the country affected by the loan charge. I know that some of them are in the Gallery today, including some of my own constituents. I pay tribute to their dignity and determination in pursuing their cause. I will focus first and foremost on the fundamental unfairness of the loan charge, but also, as has been mentioned, on the Morse review and the need for greater transparency.

I have been contacted by a number of people whose lives have been turned upside down by the charge. While it is not possible for me to give voice to all of them today, I would like to share one story that I think speaks to the experience of many.

“I have been forced to raise huge sums, including borrowing from my mother and by borrowing huge sums against my home, leaving me in a position where I cannot plan for my own or my family’s future. The impact on my mental and physical health and my relationships has been huge and I am in genuine fear for my future wellbeing if HMRC is allowed to continue unencumbered.”

Another constituent in great distress told me how she made the difficult decision to have an abortion, based on concerns about affordability stemming from the loan charge. Combined with the number of suicides that have taken place, this paints a truly harrowing picture of the impact this unfair charge is having.

The report by the loan charge APPG published in 2020 found that there was direct interference in the Morse review by both the Treasury and HMRC, and that both organisations made clear attempts to direct the review from the outset. Given the tragic impact of the charge and the public interest in this matter, surely it is time the Government set up a genuinely independent review that achieves a fair and final resolution for all.

I shall end by raising a final point about the need for greater transparency. Late last year, one of my constituents was successful in overturning the Information Commissioner’s decision to allow the Treasury not to release the final draft of the loan charge review. The original freedom of information request was made in December 2020, yet over three years later the material has still not been released. My constituent tells me that their attempts to obtain the documentation have been met with what they consider to be “deliberate attempts” to avoid FOI obligations, including being told by the Treasury that the information had been destroyed, then that it could not be found and eventually that it was prohibitively expensive to locate it. Such lack of transparency undermines trust in our institutions and must be addressed. I hope the Minister can assure me that the Government will look into this particular matter and take all reasonable steps to ensure that the information is released as soon as possible.

With over 50,000 people directly impacted and the tragic death of 10 people, it is vital that we do everything we can to find a fair and final resolution to the loan charge scandal. To gain public trust, far greater transparency from HMRC and the Treasury is needed. Most importantly, we need a new and genuinely independent review to take place.