Finance (No. 3) Bill

Debate between Sarah Wollaston and Mel Stride

3rd reading: House of Commons & Report stage: House of Commons
Tuesday 8th January 2019 Commons Chamber

[Mel Stride]

Given the limited time that is available to me to summarise a debate that has covered a large number of amendments and new clauses, I shall confine my remarks principally to the issue that has been raised most frequently, which relates to new clause 26. The new clause requires the Government to lay before the House a report reviewing the effects of changes made by clauses 79 and 80 no later than 30 March 2019. While I should note that such a report will come too soon for the measures to have had a real effect, the Government of course remain committed to setting out the rationale for their policies as well as their impact, and in that spirit we will not oppose the new clause.

I do, however, echo many of the comments made by Members about what these schemes are truly about, which is gross aggressive tax avoidance. The way in which disguised remuneration typically works is that, instead of an employer’s paying an employee by way of a salary in the normal way, which attracts PAYE income tax and employees’ and employers national insurance, the payment is made as a loan. Typically, those so-called loans, which are not really loans at all—there is no intention of ever repaying them—are routed out via an offshore trust in a low or no-tax jurisdiction, and then routed back to the United Kingdom to be received by the end recipient. That is extremely unfair. It is unfair to our public services, because we have a duty as a Government to collect the tax that is due to fund them, and it is unfair to the vast majority of taxpayers who do the right thing, which is not to get involved in aggressive tax avoidance schemes in the first place and to pay their fair share of tax.

One issue that has been raised on a number of occasions is the question of whether HMRC’s loan charge arrangements are themselves retrospective. They are not retrospective because, critically—this is where I take issue with the right hon. Member for Kingston and Surbiton (Sir Edward Davey)—at the time when they were entered into they were defective. No matter how far we go back, the scheme typically—I have described the way it works—was defective. It did not work then, it does not work now and the tax is due.

These schemes have been taken through the courts on many occasions. A scheme used to the benefit of Rangers Football Club was taken to the Supreme Court—the highest court in the land—and was found to be defective.

[Dr Wollaston]

Will my right hon. Friend give way?

[Mel Stride]

I will not, simply because I have two minutes and 30 seconds left and I want to cover some of the other issues raised this evening.

However, as I have said, the Government will accept this new clause. It is absolutely right that, when HMRC deals with the public, it has a strict duty of care, a duty of proportionality and a duty to be as sympathetic as it can be relevant to the circumstances of those with whom it is dealing. In my dealings with HMRC, I have made those points forcefully clear. As the right hon. Gentleman will know, HMRC has recently come forward to say that those earning £50,000 or less—which is over twice the average national salary of somebody working in our country—will automatically be granted, without requirement for additional paperwork, a minimum of five years’ time to pay as an arrangement to settle their affairs. Of course for those who come forward before April there is effectively in most cases no penalty as such; they will simply be required to pay that tax which was due in the past—and it was always due in the past—plus the interest that is rightly applied.

I have less than a minute left and want to say a little about amendment 12, tabled by the hon. Member for Aberdeen North (Kirsty Blackman), on the national minimum wage lock. She will know that, because we have increased the personal allowance now to £12,500 for every year of the forecast period, there will be no necessity for that lock to be in place. She makes the point that there could be a projection beyond that point. That will be a matter for a future Government of course and it is not for this Parliament to bind its successors.

I conclude on the suggested entrepreneurs’ relief review and new clause 2, which the hon. Member for Oxford East (Anneliese Dodds) spoke to. We had a review that was published in December 2017, which reported on this particular matter, and it showed that a third of those using entrepreneurs’ relief went on to reinvest in new businesses and half of those who were aware of entrepreneurs’ relief said that it significantly influenced their decision to enter into an entrepreneurial activity. It is an important element of the business tax landscape and we will of course, as we do with all taxes, keep that relief under review.

In the six seconds I have left, I urge that the House accepts the Government new clauses and, with the exception of new clause 26, rejects the Opposition amendments.

National Parks

Debate between Sarah Wollaston and Mel Stride

Monday 24th February 2014 Commons Chamber

[Dr Wollaston]

I thank the hon. Gentleman for making that point, reiterating what many hon. Members have said. This is not about saying that there should be no development; it is about allowing controlled development on a case-by-case basis, rather than having an automatic permitted development right, which I think could lead to something altogether different and entirely unintended by the Minister.

Councillor Elizabeth Bennett, a parish councillor in South Pool, has made an important point about the effect on localism, which I know the Minister feels very passionate about. He has made the point that localism does not mean that we should see no development at all, because communities have to take responsibility for supplying housing for local people. It is about deciding where and how that takes place. The current arrangements deny parish councils the ability to comment on planning proposals.

Councillor Elizabeth Bennett also raised the concern about communities such as South Pool never being able to attain access to exception sites because they are not on a bus route and do not have the amenities of a village school. Nevertheless, those communities are desperately short of housing for local people. In fact, South Pool has some of the highest property values in the country. The ratios between earnings and property value are in excess of 10, so any access to local housing is entirely beyond the means of local people. Will the Minister look at extending that access so that projects such as the wonderful village housing initiative can be encouraged to bring in more exception sites within areas of outstanding natural beauty.

This is not about asking for no development; it is about asking for the right development, and for homes that people actually live in. I would not wish the Minister to think that I am saying that all second homes are bad. As he knows, many second home owners become permanent residents within a few years. They bring in a huge amount of income to local communities, particularly when they let out their properties when they are not using them. However, it is a matter of degree and scale, and he will know that there are many parts of our AONBs and national parks where the balance has shifted too far in the direction of second home owners. That can lead to dormitory communities where the lights are hardly ever on, except in season and at the weekends.

[Mel Stride (Central Devon) (Con)]

Much of the debate so far has been about Dartmoor, half of which is in my constituency, so I am grateful to my hon. Friend for the opportunity to contribute. I agree with her that we do not want some kind of blanket arrangement that would allow absolutely every application to convert a barn into a residential dwelling. We need to cherry-pick the right options, as she has suggested. What changes to the current planning arrangements, as exercised by Dartmoor national park, for example, does she think would introduce that flexibility in the appropriate manner?

[Dr Wollaston]

I thank my hon. Friend and neighbour from Dartmoor for making that point. The change I would like to see would give our national parks and AONBs the ability to opt out of the arrangements as they stand in allowing automatic permitted development rights. I would like a change in the wording so that they have more powers to lever in land for affordable housing developments, because that is what we crucially need for our communities. My hon. Friend will know about the effect whereby we lose young people and families from rural communities, which might mean that we cannot find nurses who will work in a community hospital or, on the coast, we find that there are not enough people to man the lifeboats.

It is really important that young people and families are able to live, work and volunteer within our local communities. I would love to see whether the Minister can bring in any measures to make that easier so that we can genuinely get affordable housing rather than asking for a change to no housing. We must recognise that our national parks and AONBs need our protection; they do not need unrestricted permitted development rights. I hope that the Minister will give some encouragement to the national parks and all those who love them that there will be a change to the wording.

Fuel Prices

Debate between Sarah Wollaston and Mel Stride

Tuesday 15th November 2011 Commons Chamber

[Dr Sarah Wollaston (Totnes) (Con)]

When Labour came to power in 1997, fuel duty stood at 36.8p per litre. When it left office in 2010, the price was more than 57p per litre—“a pain in the gas” as they say in the United States. I therefore welcome the early and decisive action taken by the Treasury in taking 1p off fuel duty, scrapping the duty escalator and delaying the 3p per litre rise. Many Members have today made a compelling case for why we now need the Treasury to go further, however.

I represent a large rural constituency in south Devon, and having a car in order to get to work or exercise choice in education is not a luxury; it is an absolute essential. My constituents spend a far greater proportion of their disposable income on fuel than those who live in cities.

A further 3p rise in January would not just hit householders, however; it would hit essential local businesses, too. Some 65% of all the UK’s groceries are delivered on retread tyres produced by a company in my constituency: Bandvulc tyres. It also exports to cities across Europe. It is a significant employer and wealth generator, but a 3p a litre rise in fuel duty would cost it an additional £24,000 a year, because it uses more than 500,000 litres of fuel a year. It is a family-run manufacturing business producing a sustainable product and creating local jobs. It wants to stay in Devon but knows that it would make economic sense to relocate part of its business to eastern Europe as a result of the fuel duty rise. There are similar examples among other businesses in my constituency.

Another very important sector in my constituency is tourism. I am talking about businesses such as Sharpham wines and cheeses, which attracts 7,500 tourists a year and employs up to 40 people. More importantly, it is in the top six wine producers in the UK and it is another wealth creator that exports across Europe. That business spoke of the ripple effects of a further rise in fuel duty, as did many others. A business that I visited last week, Palladium Building Supplies, told me of the knock-on effect to the entire building industry across south Devon that there would be if we go ahead with this rise.

[Mel Stride (Central Devon) (Con)]

My hon. Friend is making a powerful point about the effect on businesses. Does she accept that not only are these high fuel prices damaging businesses, but that, in turn, that is leading to less revenue to the Exchequer, because businesses are becoming less profitable?