Simon Lightwood
Main Page: Simon Lightwood (Labour (Co-op) - Wakefield and Rothwell)Department Debates - View all Simon Lightwood's debates with the HM Treasury
(1 year, 6 months ago)
Commons ChamberIf you work here and you make your life here, you should pay your tax here. It is a simple proposition that I know people across the political divide in Wakefield agree with. We are in a cost of living crisis. I know how hard it is for people at the moment who are struggling to make ends meet. Mortgages are rising, rent and bills are going up, and the price of their weekly shop is higher than ever. Yet what angers me most is that a few at the top get away with not paying their fair share.
Our estimates show that there are more than 50,000 non-doms in just six London constituencies. There have been fewer than 100 in Wakefield, but the hard-working people in my constituency who play by the rules have had their taxes increased by this Conservative Government. Our council has been stripped of yet more funding, having seen £300 million cut since 2010. That is not fair. The continued failure to crack down on this loophole makes a complete mockery of this Government’s so-called commitment to levelling up.
I know what people’s real priorities are: an NHS that can see them on time, where they do not have to queue for hours in A&E or for months on waiting lists for treatment, and a modern childcare system that helps families struggling to get the provision for their children around the hours that they want to work. Labour would use those billions in lost tax revenue to invest in our NHS, training the next generation of doctors, nurses and midwives, and we would prioritise children over non-doms, with breakfast clubs for every primary school child in England.
Some Government Members have spoken in the past about how this could lead to some of the richest people taking their wealth out of the UK, but according to research from Warwick University and the LSE, when the non-dom regime has been reformed, it has only had a minimum impact. In 2017, reforms that restricted access to the non-dom regime for long stayers led to just 0.2% leaving the UK, and of those who had been in the UK for less than three years, only 2% left.
The current tax system is bad for business. It acts as a barrier to investing foreign income in the UK, meaning that we see neither the tax benefits nor the investment from this income. Over the past 13 years, we have been told time and again by the Conservatives that we are all in this together, but with a tax status that is unfair to ordinary taxpayers, keeps investment outside the UK and harms our economy, how can we be? For many like me, this is a simple case of fairness and of right and wrong. It is time for change, and I support the motion wholeheartedly.