Stamp Duty Land Tax (Temporary Relief) Bill

Sarah Olney Excerpts

2nd reading & 2nd reading: House of Commons
Monday 13th July 2020 Commons Chamber

[Sarah Olney (Richmond Park) (LD)]

I should declare an interest, in that I moved house earlier this year, about four weeks before lockdown started, when the purchase of a family home in a constituency whose house prices are significantly above average meant that I paid a fair chunk of change in stamp duty. Given that this year, more than any other, we have all had cause to be grateful for and celebrate our public services, I am glad to have made that payment and to have been able to support our NHS in such a way. Having had that experience, I have had a lot of thoughts about stamp duty as a tax, not all of them supportive, as I do not think it is a very fair or efficient tax. As the representative of a constituency with considerably higher than average house prices, it is a tax that affects my constituents far more than most. However, I am standing here today to oppose this cut, because in the current circumstances I have to ask: is this the best use of the £3.8 billion that the Chancellor will lose in revenue as a result?

I have heard from estate agents in my area—again, we have a reasonably healthy housing market in Richmond Park—and they are telling me that, even before the announcement last week, they were beginning to see a healthy return of interest from potential buyers. I am sad to say that that is probably because, as we know, the three drivers of the housing market in normal times are death, divorce and debt. I do not need to explain to anybody here, because they will all have seen it in their constituencies, why those three particular drivers of the housing market have been so prevalent this year and will continue to be so next year.

I am not entirely certain that the housing market is the sector we really need to be supporting with our tax revenue at this time. As I say, even without the stamp duty cut announced last week, we were already starting to see the revival of the housing market and all those associated industries that the Minister mentioned in his speech—the solicitors, the removal firms and all the construction firms such as plumbers, bathroom fitters and associated industries. They were already starting to come back, and there is huge pent-up demand from people like me. I bought a house in February with the intention of doing it up, and I have to tell the House that this has been a very frustrating three months for me: I really want to get a new bathroom very soon, and I plan to do so.

I am not certain that the housing market is the market that really needs supporting at this time. I am not certain that the construction market and the other markets that the Minister referred to are the best uses of this money. I pay tribute to the hon. Member for Mitcham and Morden (Siobhain McDonagh) and support what she said. When we think about the individuals who are most in need of Government support, it is not those who are able to secure mortgage finance. In the mortgage market, people have to have a fair amount of money already in the bank to put down a deposit, but they also have to have a reasonable expectation of future income in order to be able to service a mortgage.

I think we can all agree that unemployment undermines the housing market more than anything else—more than the need to pay stamp duty. We all know that because we saw it last week—even the day after the Chancellor’s statement, we saw some of our major retailers announce job cuts—and we all know that there is more to come. That, far more than anything else, is going to undermine our housing market and with it all the sectors the Minister mentioned.

We know that unemployment is the biggest drain on our economy, and we all know that there have been sectors and individuals that have struggled far more than others during this time. I just want to draw attention again to that group of people—we estimate there to be about 3 million of them—who were left out of all plans for support. As summer turns to autumn, when their mortgage holidays end or when their landlords are no longer barred from evicting them, they face real fears about how are they going to pay their mortgages or rents, as well as about the businesses they set up or the new jobs they accepted at the beginning of this crisis. In my constituency, I have a lot of people who were on contract work. All that has fallen away, and they have had no income now for months and months.

[Jacob Young (Redcar) (Con)]

Would the hon. Lady concede that those people she is talking about are exactly why we need to get the housing sector going again? Those self-employed people who work as plumbers and electricians, who may not have been eligible for some of the support the Government offered, are the reason why we need to do this.

[Sarah Olney]

No, I would not concede that, and I will tell the hon. Member why: it is because we are talking about sectors that are not going to be improved or helped by a revival of the housing market. A lot of people in my constituency are working in the creative industries, for example.

[Siobhain McDonagh]

I am not sure whether the hon. Lady saw the article in The Sunday Times yesterday identifying not only first-time buyers as people having problems in securing mortgages, but self-employed people, because of banks and building societies being concerned about their future incomes.

--- Later in debate ---

[Sarah Olney]

I thank the hon. Lady for making the point better than I could, in response to the hon. Member for Redcar (Jacob Young), because it is precisely that: uncertainty about people’s futures is the biggest barrier to their securing the kind of mortgage finance they will need to purchase a house, stamp duty or no stamp duty. That is the absolutely crucial point, and it is why I am asking the Treasury whether it thinks the £3.8 billion could have been better spent.

To refer back to those self-employed people, some of them could have been helped. Some people have benefited from the furlough scheme and have been entitled to up to £2,500 a month. Some of our self-employed people have missed out on support, but they could have had that £2,500 a month for three months: we could have helped 500,000 of them with the £3.8 billion that we are spending instead on this stamp duty holiday. That is really important because, apart from anything else, we are talking not just about self-employed people, but about company directors and people who have set up recently, and they are the people who will be creating the jobs of the future. They will be the engine of this recovery. They are looking at the new opportunities available in the post-coronavirus world, and they have the energy, enthusiasm and the get-up-and-go to start rebuilding business and our economy in a way that I believe would have happened anyway with our housing market. By not helping those people, we limit the prospects of new business, which is the engine of new jobs, and we destroy livelihoods. That will stimulate the housing market because those people will now have to sell their houses because they cannot pay the mortgages that they secured on them. I do not believe that that is quite what the Minister had in mind.

Above all, the feeling among so many self-employed people and company directors that I have been speaking to is that we have undermined their confidence, and that will ultimately be the biggest impact of this. They thought that that this was a Government who prized entrepreneurship, supported small businesses and wanted companies to thrive, and I am so disappointed, after everything that has been said in this place by so many MPs across all parties. My hon. Friend the Member for Caithness, Sutherland and Easter Ross (Jamie Stone) set up his all-party group on this issue last week and has 200 MPs representing their constituents who have been excluded. I cannot tell the House how disappointed I am that after all that, the Chancellor of the Exchequer came to the Dispatch Box last week and announced this stamp duty cut instead of proper, real support for the people we are going to be depending on in the weeks and months to come.

However much I personally feel that stamp duty is a bad and wrong tax, I still say that the £3.8 billion could have been better spent at this time, and I am really disappointed that the Government did not take that opportunity.

Finance Bill

Sarah Olney Excerpts

Report stage & Report: 2nd sitting & Report: 2nd sitting: House of Commons
Thursday 2nd July 2020 Commons Chamber

[Matt Western (Warwick and Leamington) (Lab)]

It is a pleasure to follow the hon. Member for Arundel and South Downs (Andrew Griffith). I spoke in the debate on the Budget delivered on 11 March, which for all of us seems like a lifetime ago, such has been the impact of covid-19 on us socially and on our health but also on our communities and, profoundly, on our economy. That is one reason why I wanted to speak, although perhaps some of my comments are more relevant to yesterday’s debate.

We were told that covid-19 would not discriminate and that all of us would be impacted equally, but, as we have seen, we are witnessing a further widening of inequality by virtue of this terrible crisis. We now know that its impacts are different according to the nature of someone’s employment, where they live and so on. It reminds me of what happened from 2010 onwards, post the financial crash, when we were told we were all in it together. Of course, that was never the case. Those who had wealth and capital prospered. Look at the wealth of the top 100 people in this country and how it grew exponentially in the past decade, and how inequality widened so considerably. That has to be our great fear: the mistakes of the period from 2010 onwards will be repeated now. The warm words are not enough. We have to address this. We must recognise the sacrifice and contributions made by everyone across our society, irrespective of what people do. It does not matter whether they work in finance in the City or whatever; it is not enough. We all make a contribution. We all have a part to play in our society and in our economy.

In my constituency, there are just under 2,000 children living in relative poverty. Many people think it is a wealthy, prosperous community, but that is one in nine of all children. When it comes to energy poverty, one in 11 households lives in such poverty. We have no quality social housing being built at scale: something like nine social rent council homes have been built since 2010, and an average of 90 social rent homes have been built a year for the past five years. That is inequality. The children of this next generation will not enjoy the same benefits as that those of us who grew up in the 70s and elsewhere. We had a right and an opportunity to quality housing, to an education and to good job prospects. We are now seeing the beginning of unemployment rocketing.

I want to cover what is missing from the Finance Bill, given the drastic change in the economic picture. With prosperity, we can address inequality, but it is a choice. In particular, the support we now need from the Treasury for the automotive industry, which is so important to my constituency, is to protect jobs and get the Warwick and Leamington economy back on its feet. Covid-19 has had a huge impact on my constituency, as it has everywhere else, but of course the effects vary.

I have spoken with a wide range of businesses that have required the financial support offered by Government, which has been broadly welcomed, albeit there have been some huge gaps in the support for directors of small limited companies and others. In Warwick district—that is not entirely the same as the constituency—16,900 people had been placed on furlough. Many of them will be in the sectors hardest hit, such as hospitality, retail, leisure and tourism, and many are the lowest paid workers in my constituency, who will be at the start of their working lives. I have great concerns about what will happen once employer contributions to the job retention scheme are phased out entirely. The claimant count in my constituency has already shot up by 129% since March to over 3,000 people, and the figure will only go higher as the JRS is wound down. I urge the Government to consider extending the scheme for those sectors that are being badly impacted by the virus, until we can remove social distancing measures. The Leader of the Opposition also asked for this at PMQs yesterday.

Even with furlough still in place, people in my constituency are already losing well paid, skilled jobs in our precious automotive industry. Just last month, Jaguar Land Rover announced that it will be cutting 1,000 jobs and Aston Martin announced 500 job losses. With UK sales down 97% in the past two months, the sector has effectively had to cease production for three months, yet companies have often found that they do not qualify for the Government-backed loans. Demand for vehicles has understandably fallen off a cliff, and those businesses are going to need a lot of support to get back on their feet.

Along with colleagues on the all-party parliamentary group on electric vehicles, I have written to the Chancellor and the Business Secretary in my role as chair of that group to ask them urgently to discuss a stimulus package for the sector. I hope they will respond to that letter soon. There is an opportunity not only to protect skilled manufacturing jobs—the kind that we are desperate to attract and retain in this country—but to drive the industry towards a greener future. I know that the industry is desperate for the Government to work with it in that regard.

We need Government intervention because it is vital to managing transition. I very much hope that we will hear some positive words from the Chancellor next week. I therefore welcome the reforms to vehicle excise duty in the Bill and the £500 million for electric vehicle charging infrastructure announced at the Budget, but we must be much bolder if we are to make electric vehicles and other alternative fuel vehicles a good choice for consumers as has been done in other markets. By way of example, Norway has been the most successful country in achieving EV market penetration. The support from the Government there provides reduced road tax, free municipal parking and VAT exemption. This approach makes the total cost of ownership less than for dirtier, more polluting vehicles. We need 30,000 charging points in the UK—three times the amount we have now—and the investment to make it happen.

When the Prime Minister talks about trying to get the economy back on its feet, the phrase “build, build, build” is wrong for me. We must make, make, make and invest, invest, invest in our infrastructure, including in EV charging points and getting more alternative energy sources into our grids in order to build a cleaner and better future. As it happens, I travel by electric bike and would encourage everyone to take shorter journeys using this mode of transport, but we must make it cheaper for consumers to do so. Such grants and benefits can really help to stimulate new sectors. I urge the Government to consider doing this next week.

I urge Treasury Ministers to look again at how the Government can use our taxation system to incentivise the purchase and uptake of new, cleaner internal combustion engine vehicles; to support our automotive industry to get firing on all cylinders again; to look at alternative fuels, electric vehicles and hydrogen vehicles; and to think about how we can really progress and drive the sector forward. The Government must have the sector at the front of their mind before any financial statement delivered next week that is designed to protect jobs. Without urgent action and action at scale, we risk losing this sector forever.

[Sarah Olney (Richmond Park) (LD)]

I congratulate the hon. Member for Workington (Mark Jenkinson) on his maiden speech and warmly welcome him to his place. I shall attempt to tune my Surrey ears to his Cumbrian dialect, and I very much look forward to hearing more from him.

I want to take this opportunity to ask the Government, in their response to the coronavirus and all the challenges that are still to come, to focus particularly on two priorities when making their decisions about how to allocate resources to meet this enormous challenge. The first is to focus on the interests of our children and young people. It would have been unthinkable at any other time for an entire generation of schoolchildren to have missed a whole term and a half of schooling. Among all the justifiable anxiety about infection rates, testing, PPE and reopening the economy, the needs of our children seem to have been somewhat sidelined.

I welcome the Secretary of State’s statement earlier today about reopening schools in September. Like the rest of the House, I fervently hope that infection rates continue to decline to facilitate this. I would like to see a wholesale commitment from this Government to overcoming the educational deficit that has resulted from the shutdown. We already know how much of an attainment gap opens up between different groups of children over the summer holidays, and we can only imagine how much more pronounced that this will have become after half a year’s worth of missed schooling. I urge the Government to allocate generous resources to schools so that they may invest in the additional staffing and resources that they need to meet the needs of all children who have been disadvantaged.

I would also like to see a commitment to more diverse forms of learning to help engage young people who have become alienated from traditional forms of learning over their time away. Music, drama, sport, and open-air learning can all help children to re-engage with their education and will also help to revive employment sectors that have been damaged by the shutdown.

Beyond education, we have a cohort of school leavers who are attempting to enter employment at the worst possible time. If we are not to doom this cohort to a lifetime of missed opportunities, we must act now to provide them with the employment opportunities where they can build real skills and lay the foundations for a meaningful working life. In that spirit, I welcome the aspiration in the Prime Minister’s speech to build, build, build, as I recognise that this will provide opportunities for high-skilled jobs and apprenticeships. However, I ask that the Government include a real commitment to retraining career changers to help people who have lost their jobs in this pandemic to find work among the new opportunities that these projects will provide.

I note that the sectors the Prime Minister promises to provide funding for are areas of employment that are typically masculine. I urge the Government to redouble their efforts to engage young women and female career changers in training for careers in construction and engineering if those are the sectors where employment is due most quickly to recover. We know that child poverty is most effectively overcome when women are in work and earning a good wage, supported by affordable childcare.

On that note, I draw the Government’s attention to the financial precariousness of both our pre-school providers and our universities. Every one of these institutions that is forced to close or scale back activity as a result of the pandemic is a narrowing of opportunities for our children and young people, and every effort should be made to support these sectors. While I am on this point, I should like to take the opportunity to raise the issue of travel in London for those under-18. For many years, it has been free for under-18s to travel on Transport for London services, and that has opened up to all of them a much wider range of opportunities—education, cultural, sporting and social. As part of the package that the Government put in place to bail out Transport for London earlier this summer, they specified that that travel offering for the under-18s had to be scrapped. In support of that decision, they cited the fact that young people use buses only for short journeys that they would otherwise walk. I have obtained from the Minister the evidence for that assertion, and it came from a report published some years ago that concluded that free travel for under-18s had an overwhelmingly positive impact on young people’s social and educational lives. I urge the Government to prioritise young people in this recovery and to make a start by scrapping this restriction on their travel.

The second area that I call on the Government to prioritise as we plan our future beyond this pandemic is the environment. I was really disappointed not to hear a greater emphasis on the progress towards our net-zero carbon targets in the Prime Minister’s speech. This is a fantastic opportunity to implement carbon-free and low-carbon standards into our construction of new homes and into our transport systems. We can also take this opportunity to specify new standards for biodiversity, water quality and air quality and to redouble our efforts to increase the proportion of our energy that comes from renewable sources. I particularly encourage the Government to think not just about new buildings, but about bringing existing buildings up to 21st-century standards. Committing to a programme of retrofitting insulation to our ageing homes, especially those belonging to low-income families, can provide skilled employment opportunities and help us to make substantial progress towards our net-zero carbon goals.

There are so many other challenges that this Government will need to face over the next few months and so many calls on taxpayers’ money, but I want to see the Government establish clear strategic priorities for their future spending, and I would like those priorities to be our children, our young people and our environment.

[Rachel Hopkins (Luton South) (Lab)]

After a decade of austerity, which has seen an assault on people’s living standards and our social security system, child poverty is at a disgracefully high level, and the Bill will not work towards tackling the root causes. I am speaking in support of Labour’s new clause 29, which would ensure that the Government review the impact of the Bill on poverty, and I commend my hon. Friend on the Front Bench for his opening remarks and others on this side of the House for the passion and understanding with which they have spoken.

Social Security

Sarah Olney Excerpts

Tuesday 5th May 2020 Commons Chamber

[Sarah Olney (Richmond Park) (LD) [V]]

Madam Deputy Speaker, it is a pleasure to be making my digital debut under your chairmanship this afternoon.

I welcome the change in employment allowance that the Minister has announced. It will obviously come as a massive boost to small businesses at this incredibly difficult time. I want to take the opportunity to raise the case of some of the groups, which have been contacting me, that have been missed out in the Government’s plans of support during the coronavirus crisis. I welcome the Government’s overall objective to support employment and people’s household incomes during this time, but I think it is important to note that there are some groups that have been missed out.

The priority at this time should be support for the self-employed, particularly small limited companies in which individuals pay themselves by dividends. They have been cut off from all sources of support. I also have a lot of our constituents on regular short-term contracts—they go from contract to contract—who are paid through pay-as-you-earn, and they cannot take advantage of the furlough scheme, welcome as it is. I would like to hear more about the Government’s plans for them.

I have been contacted by a lot of new starters who started jobs after 28 February and were not on their current company’s payroll scheme at that time, so they have missed out on furlough. There are also the businesses that have been set up in the most recent tax year, which do not have turnover that they can demonstrate. I also have a lot of constituents whose average earnings have been more than £50,000, so they have missed out on self-employment schemes. I really want to hear more from the Government about what they are going to do to support those businesses and self-employed individuals, who have been working very hard to support their families and are now finding themselves in a really desperate situation.

I want to support what the hon. Member for Ilford North (Wes Streeting) said about the job retention scheme. It is so important as the Government look at their furlough scheme, and obviously they will be reviewing it. What I want to call for is not just to extend it beyond June, but to make it more flexible so that businesses can furlough part of an employee—they could bring employees in for two days and furlough them for three days. It is going to be so important to businesses to have such flexibility as we emerge from the coronavirus crisis. I want to make that call today to the Government, as they are reviewing the situation, to support those entrepreneurs who are going to be leading us out of this economic crisis and those people who are going to innovate to enable the changes we need to build a better society as we seek to move forward.

Loan Charge 2019: Sir Amyas Morse Review

Sarah Olney Excerpts

Thursday 19th March 2020 Commons Chamber

[Sarah Olney (Richmond Park) (LD)]

Madam Deputy Speaker, I will obey your instruction to be brief by merely commending the contributions to this debate from the right hon. Member for Haltemprice and Howden (Mr Davis) and my right hon. Friend the Member for Kingston and Surbiton (Sir Edward Davey).

I merely add that, as a member of the accounting profession, I have been somewhat abashed during this debate. We are not coming out of this well. I was contacted by a constituent of mine, Dr Nausheed Baig, who is an NHS dentist. He is there to practise the skills of dentistry. He takes full responsibility for his tax affairs, and he does that by consulting a professional tax adviser. I believe that HMRC should always take into consideration the fact that taxpayers, in taking responsibility for their affairs, are not expected to be tax experts themselves, and it is perfectly reasonable and rational to consult and take advice from qualified accountants such as myself—I have never charged for tax advice, so I do not have a declaration to make.

I wish to raise the case of another constituent of mine, Mr Michael Bilton, who is now retired, and his wife is on the verge of retirement as well. Between them, they take care of their disabled daughter. Mr Bilton was in a loan scheme prior to 2010 and received notification only a few years ago of the large sums of tax that he was now required to pay. He has already paid a considerable sum. The outstanding liability is of considerable concern to him, as he and his wife prepare for retirement and to take proper care of their disabled daughter. I urge the Minister to think about those people who have already paid large sums. Sir Amyas Morse has confirmed that anything prior to 2010 should not be liable to a charge. I urge the Minister to consider rebates for those people who have paid vast sums already into a scheme that has now been judged not to give rise to a charge. I realise that there are considerably more pressing issues, but if that could be attended to in due course, I would be extremely grateful.

Coronavirus: Employment Support

Sarah Olney Excerpts

Thursday 19th March 2020 Commons Chamber

[John Glen]

I thank my hon. Friend for her suggestions. Obviously, we have made a specific package of interventions available in the retail, leisure and hospitality sectors. We also have the grant facility at a high level for those sectors. She makes a reasonable point, and we will look at it—and we are looking at it—very carefully.

[Sarah Olney (Richmond Park) (LD)]

I was here on Tuesday night when the Chancellor made his statement, and there can be no doubt what the attitude of the House was at that time. It was that the package of loans and other measures announced by the Chancellor on that occasion would not be sufficient. It would not be sufficient for those who are relying on benefits, it would not be sufficient for those who are already finding themselves out of work, and it would not be sufficient for the self-employed. Here we are two days later, and the Minister is telling us that there simply has not been time to consider these things. This is urgent, and we really must have action now. Why is it taking so long?

[John Glen]

Every day, Ministers across all Departments are working on different aspects of the package. Yesterday my right hon. Friend the Housing, Communities and Local Government Secretary brought forward some measures for renters. We also have the three-month relief for mortgage holders where they need it, and for buy-to-let mortgage holders. There is more work being done urgently to give clarity on the elements that Members of the House are raising, but, as I said earlier, it is a question of making sure that when these measures are announced, they are going to be effective and can be delivered efficiently.

Economic Update

Sarah Olney Excerpts

Tuesday 17th March 2020 Commons Chamber

[Rishi Sunak]

Of course, we take the advice of the chief medical officer in this regard and we will continue to do so. We have been absolutely clear that the NHS will get whatever support financially it needs from the Government to help get us through what will be a very challenging time. We are considering all measures to increase the capacity of the NHS to respond to this, and indeed provide the support to those on the frontline who are going to deal with a very difficult few months.

[Sarah Olney (Richmond Park) (LD)]

I obviously welcome the Chancellor’s commitment to making sure that jobs are saved and that people can stay in work, but I wonder whether he agrees that by structuring his package around loans rather than grants, he actually loses some control over what the money is spent on. Therefore, he cannot be certain that the money is going to be spent most effectively in pursuit of this objective.

[Rishi Sunak]

It is not just loans; it is loans and grants and tax relief on business rates, as well as deferral of tax payments through time to pay and reimbursement for statutory sick pay. Across the piece, it is a series of different interventions, all of which will be effective at doing one fundamental thing: improving the cash flow in the short term of businesses to help them bridge through what will be a temporary dislocation, so that they can emerge on the other side and we do not lose for the long term that productive capacity and lose those jobs.

Tax Avoidance and Evasion

Sarah Olney Excerpts

Tuesday 25th February 2020 Commons Chamber

[Sarah Olney (Richmond Park) (LD)]

It is a great pleasure to follow the maiden speech of the hon. Member for Stourbridge (Suzanne Webb). My constituents in Richmond Park will have listened with great envy to tales of an efficient, on-time train system, so I thank her for that.

The most recent estimates of the tax gap in the UK—between what is due to HMRC and what is actually collected—are in the region of £35 billion. As a proportion of overall tax owed, this is just over 5.5%. The proportion has actually fallen in recent years, but this needs to be set against a backdrop of increasing austerity, which impacts disproportionately on the poorest in society. If the Government’s goal is to balance the books, they need to collect all the money they are owed with the same rigour as they manage their expenditure. A society that is quick to sanction those who fall foul of the rules on claiming benefits should be just as quick to penalise those who avoid paying their fair share of tax. As parliamentarians, our interest in the tax gap should not be in its size, its proportion as a share of tax collected or its comparison to prior years, but in the efforts taken by the Government to reduce it, as an indicator of their commitment to fairness and the equal treatment of every citizen, regardless of their income.

As we transition from our membership of the European Union to whatever we are headed towards, attention must be focused on anti-money laundering regulations. The proposed sanctions and anti-money laundering legislation would give Ministers powers to scrap existing EU regulations and replace them with UK laws. The Liberal Democrats are concerned that enthusiasm among some on the Conservative Benches for a bonfire of regulations—a “Singapore-on-Thames” style, low-tax, low-regulation UK economy—will result in these new regulations been watered down, to the benefit of those who would prefer less intrusion in their financial affairs. What assurance can the Government give us that the UK outside of the EU will clamp down just as firmly on tax evasion as it did when it was within EU structures?

The Conservatives’ previous attitude to tax havens does not inspire. Sir Vince Cable, while Business Secretary during the coalition, introduced a “people with significant control” register for anyone who owns more than 25% of a UK registered company, or otherwise exercises significant control over it. These PSC registers were due to be extended to cover the British overseas territories, until they were vetoed by the then Prime Minister, David Cameron, after intensive lobbying. Will the same forces be brought to bear on our post-EU anti-money laundering regulations? Will the Conservatives stand up for the ordinary taxpayers of this country and put in place robust measures to tackle financial crime?

The Liberal Democrats called for the extension of the register of beneficial ownership to all British overseas territories so that accurate assessments of tax owing can be made. Companies that do not voluntarily disclose this information should be barred from bidding for Government contracts, on the basis that companies that may be avoiding contributing to the public purse should not be expected to benefit from it. Furthermore, HMRC should be properly resourced so that tax avoidance can be identified and redressed. With tax inspectors stretched to the limit, too many claims go unscrutinised and too few spot checks are carried out. The Social Market Foundation estimates that under-reporting is considerably more prevalent than current analysis suggests, and that the tax gap may in fact be much wider than the stated £35 billion. The 2019 Liberal Democrat manifesto called for a general anti-avoidance rule, under which all the little loopholes and anti-avoidance measures could be prosecuted without specific legislation. HMRC could make far greater progress in closing the tax gap if it had sufficient legislative tools. A Government committed to levelling up and treating all taxpayers fairly would introduce such a measure in their forthcoming Budget.

I confess to a little wry smile when the Minister mentioned the Making Tax Digital programme and its hoped-for success in reducing the tax gap. Before I was elected to this place, I was the financial accountant for Historic Royal Palaces. In that role, I was responsible for introducing Making Tax Digital into the organisation, and I have to say that although it was successfully implemented and the organisation is now reporting under that regime, the implementation was significantly held up by the very poor drafting of the legislation that introduced it.

The tax gap needs to be closed. This is money that belongs to us and to our constituents. Week after week, we all see the consequences of too little money in our public services. The tax gap is money taken out of the pockets of the poorest in society, and the Government must not sit back and allow this to happen.

[Madam Deputy Speaker (Dame Eleanor Laing)]

I am afraid that I have to impose a time limit of six minutes with immediate effect. This way, everyone will get a chance to speak.

Economy and Jobs

Sarah Olney Excerpts

Monday 20th January 2020 Commons Chamber

[Sarah Olney (Richmond Park) (LD)]

I rise in support of the amendment standing in the name of my right hon. Friend the Member for Kingston and Surbiton (Sir Edward Davey).

This, of course, is not my maiden speech, although it is the first time I have spoken in the Chamber after an enforced absence of two and a half years—not quite as long as the break that the Conservatives have taken in representing Newcastle-under-Lyme. The hon. Member for Newcastle-under-Lyme (Aaron Bell) gave us a very entertaining maiden speech, for which I thank him. I welcome him to the House.

This year is likely to be a watershed for the British economy and will have long-lasting impacts on the shape of our nation’s employment. After three and a half years of wrangling, we stand here on the verge of leaving the European Union. We will be abandoning the structures that have underpinned our economy for 40 years; that have enabled businesses across this country to grow their market without barriers or obstacles; that fostered relationships between individuals and organisations to their mutual benefit; and that gave us the easy access to a wider range of goods and services than we could produce ourselves. They gave our young people the option to travel freely across 28 countries, and gave us the benefit of the skills and experience of people who could travel freely back to us.

Although I reluctantly concede that Brexit is now happening, I continue to be baffled as to why. Given that delivering Brexit was the centre of the Conservative manifesto, I was hoping that my confusion could be cleared up by reference to their programme for government. The Queen’s Speech opens by telling us that the Government plans to make the most of the opportunities that Brexit brings for all the people of the United Kingdom, but there is no further mention of what the opportunities are or what the Government plan to do to make the most of them.

[Dr Lisa Cameron (East Kilbride, Strathaven and Lesmahagow) (SNP)]

I thank the hon. Lady for giving way. She is making an excellent speech. In relation to making sure that the economy works for everyone, does she agree that it is extremely important that the economy works for people with disabilities, so that they are able to get into employment? We should also champion opportunity for people with disabilities to become entrepreneurs themselves and to run businesses, because without everyone being involved in the economy, it is really worth nothing at all for anybody.

[Sarah Olney]

I thank the hon. Member for her intervention. I agree 100% with her points.

It is striking how often the words “maintain”, “continue” and, dare I say, “remain” appear in the briefing notes about the planned financial services legislation. The importance of the financial services sector to our economy is underlined, but the message is that, far from leveraging the opportunities of leaving the EU to enhance this key sector, every effort must be made to keep things exactly as they are. That is in direct contrast to the comments last week of the outgoing Governor of the Bank of England, who said that close alignment on financial services would not be in the UK’s interests, as we would effectively be surrendering control of regulations to a body over which we have no power. That surely highlights the conundrum at the heart of Brexit. Do we want close alignment with the EU to smooth the path of our exports, or do we want to take control of our own destiny and set our own rules? The Queen’s Speech, alas, gives us no indication of the path that the Government plan to take.

We see that conundrum highlighted further in the trade Bill. Its commitments to transitioning trade agreements that we are currently party to as members of the EU are undermined by the Chancellor’s comments at the weekend that he wishes to see no alignment with the EU. We cannot transition trade agreements smoothly if we wish to renegotiate the terms on which they are agreed. Again, there is no clarity on what the Government have chosen—alignment without influence or frictionless trade? Are we to have cake or will we eat it? The Government announced their plans to set up a UK-based body to plead with the international community not to be unkind to UK firms. I wait eagerly to see whether this policy is more effective at protecting the interests of UK businesses than having a seat at the table of international rule-setting trade bodies.

The Liberal Democrats made changes to business rates a central part of our 2019 manifesto, because we recognise that urgent reform of this regressive tax is required to support small businesses and revive town centres. I therefore welcome the Government’s commitment to conducting a fundamental review of business rates, but I regret that they do not use their substantial majority in this place to commit to a more radical change. The Government state in the briefing notes that they recognise

“the role of business rates as a source of local authority income”,

as if to warn us that we can have thriving town centres or well-funded local services, but not both. It is disingenuous of the Government to pretend that they cannot resolve this conundrum through proper reform of local government finance.

I welcome the Government’s commitment to protect and enhance workers’ rights as the UK leaves the EU, but regret that they have not provided more detail as to exactly how those rights would be upheld. Liberal Democrats would like to see employees on zero-hours contracts given the right to request a permanent contract after 12 months, but the Government only commit to enabling them to request a more predictable contract—a guaranteed single hour of work, perhaps.

It is disappointing that there has been no mention in the Queen’s Speech of reforming either the loan charge or the IR35 regime. The loan charge is causing intense distress to innocent taxpayers up and down the country that is unlikely to be alleviated by the recent recommendations from Sir Amyas Morse, and the IR35 legislation—a looming disaster for the self-employed in the private sector—is not mentioned either. The Chancellor has only committed to a review.

I take this opportunity to highlight the excellent neonatal unit at Kingston Hospital in my constituency, and the fantastic staff who work there. I should also like to mention the charity Born Too Soon, which does amazing work supporting families whose babies have to stay at the unit. To my deep and lasting sadness, we were once one of those families, so I feel qualified to welcome uncritically the Government’s commitment to paid neonatal leave for those parents who find themselves in that incredibly difficult position.

The Prime Minister promised us a radical and reforming Queen’s Speech, but the most striking feature of its plans for the economy and jobs is its timidity and uncertainty. There is bold talk of making the most of the opportunities presented by Brexit, but very little detail. It is almost as though the Government are not really sure what they want to do with the Brexit that they secured a mandate for. If the best they can come up with is to commit to keeping everything just the same as it was, I am forced to wonder why on earth we are leaving the European Union at all.

[Mr Deputy Speaker (Mr Nigel Evans)]

I call Jo Gideon to make her maiden speech.