Spring Statement
John Bercow Excerpts(5 years, 1 month ago)
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Several hon. Members rose—
Mr Speaker
Order. It might be helpful to the House if I indicate that, given the pressure of time and the importance of subsequent business—to which reference was made earlier—it will almost certainly not be possible on this occasion for me to take everybody on this statement, which, as the House knows, is ordinarily my practice. I am looking to move on at approximately 2.45 pm. It may be possible to move on before then, but I certainly do not want it to be significantly later than then.
Mr Kenneth Clarke (Rushcliffe) (Con)
May I sincerely congratulate my right hon. Friend the Chancellor on keeping his head while all around are losing theirs? I am sure that he would have liked to have delivered a rather different statement if the vote had gone the other way last night. Does he agree that economic forecasting is difficult at all times, particularly at a time of slowing global growth, trade war, Chinese debt problems, and, above all, the uncertainty of Brexit? Does he agree that the optimistic forecasts by the OBR are based on a smooth progression to Brexit, with no new barriers to trade and investment with our most important market on the basis that we currently enjoy under the customs union of the single market?
Finally, will the Chancellor guarantee to me that he will keep his fiscal powder dry—keep his reserves, as he may need them to avoid a recession or a financial crisis; that he will resist the irresponsible approach of the Opposition, who have the idea of spending and borrowing money only as a policy platform on every issue; and that he will resist all the other understandable demands from all parts just to spend money in response to lobbies, because he has the duty of keeping the British economy intact at a time of almost unprecedented crisis and unforeseeable problems?
Mr Hammond
My right hon. Friend is right, of course, about the OBR’s Brexit assumption—I said so earlier and the OBR has said so clearly. It has to make an assumption, and until there is a new policy, that is unfortunately the way it is mandated to work. On the forecast, I have addressed this in this House many times before. The forecast is based on those assumptions. We are either going to have a no-deal exit, in which case I would expect a significantly worse outturn, or we are going to lift this cloud from above our economy, in which case I would expect a significantly better outcome. A number of important commentators, including the Governor of the Bank of England, have suggested over the past couple of weeks that there is more juice in the economy if we can just lift this cloud.
I have noted my right hon. Friend’s early bid for further education in the spending review. There will be lots to discuss as we go into the spending review, and we will ensure that there are proper, structured arrangements for Members of this House to make their views known. My right hon. Friend the Chief Secretary will be happy to engage across the House.
My right hon. Friend asked about the target for the mid-2020s. I simply do not accept that the figures published today show that it is impossible to reach a balanced budget in the mid-2020s. In 2023-24, the deficit will be 0.5% of GDP, but whether we choose to get the deficit down to zero or choose to do other things is a choice, and we are lucky to have it.
Mr Speaker
The hon. Member for Manchester Central (Lucy Powell), who is ordinarily known for her buoyant and enthusiastic smile, was gesticulating at the Chancellor to speed up. I think she was auditioning for the role of Speaker, and presumably seeking to give the right hon. Gentleman a masterclass in brevity, notwithstanding her desire often to make her own point with enormous eloquence but at not inconsiderable length—but we will see.
Rachel Reeves (Leeds West) (Lab)
In today’s forecast from the OBR, GDP growth this year is being revised down by 0.4%. The largest downward revision is to business investment—a downward revision of 3.2%. Business investment is now expected to shrink by 1% this year after shrinking by 1% last year. The Federation of Small Businesses says today that confidence is at “rock bottom”. The CBI says on tariffs that there has been
“no consultation with business and no time to prepare”,
and that this is
“a sledgehammer for our economy.”
Does the Chancellor recognise that businesses are losing patience with this Government and that unless businesses invest and help to grow our economy, productivity and wages are going to stay at rock bottom? What is he going to do to reverse this incredibly worrying and dangerous reduction in business investment?
Several hon. Members rose—
Mr Speaker
The hon. Member for Manchester Central is much talked about. I think it is time we heard from her.
Lucy Powell (Manchester Central) (Lab/Co-op)
Thank you, Mr Speaker. I am reclaiming “bossy”.
Is it not the case that cuts to police, local services and schools are a false economy? We pay for the cost of failure, the cost of rising knife crime, the cost of school exclusions, the cost of rising poverty and the cost of failing families and children. Will the Chancellor prioritise in his forthcoming spending review early intervention, to support families and help children get the best start in life?
Several hon. Members rose—
Mr Speaker
Order. We need to speed up, because I want to accommodate colleagues. Can we have a one-sentence question?
Ann Clwyd (Cynon Valley) (Lab)
I, too, want clarity from the Chancellor. When he talked about environmental spending in England, did he mean only England, or England and Wales? Will a certain amount of money be given to Wales? When I was first elected, 35 years ago, my constituency had one of the worst industrial polluters in the whole UK. It has left us with 27 acres of derelict land at the bottom of a valley, and a lot of wasted investment. Will he please help us to get that toxic waste cleared up and taken away so that the land can be made suitable for people to use?
Several hon. Members rose—
Mr Speaker
Now, this is the challenge: can people ask their question in fewer than 30 seconds?
Caroline Lucas (Brighton, Pavilion) (Green)
It seems that the Chancellor is hoping to buy off the rising tide of youth campaigning with a sprinkling of announcements on the environment, but the science is clear and he is doing nothing like enough. We have 11 years to avoid climate breakdown, and protected species are in freefall. I have one test for him to prove whether he is remotely serious about the agenda: will he reverse the savage funding cuts that his Government have made to Natural England—yes or no?
Several hon. Members rose—
Mr Speaker
May I very gently exhort caring and sharing comrades to care for and share with each other, and not to speak in such a way as to stop others speaking? I am sure they would not want to do that—it would be uncomradely.
Neil Gray (Airdrie and Shotts) (SNP)
I and my colleagues, the Joseph Rowntree Foundation and, I presume, the Work and Pensions Secretary have encouraged the Chancellor to scrap the final year of the benefit freeze. Given that he knows that, alongside the two-child policy, it is one of the worst policies for driving up child poverty, why has he maintained it? Why has he not scrapped it in the spring statement?
Several hon. Members rose—
Ben Lake (Ceredigion) (PC)
Will the Chancellor clarify the extent to which reduced business investment and fewer tax reliefs have contributed to higher corporation tax receipts?
Mr Hammond
I am not sure I entirely understand the question, but clearly corporation tax receipts have gone up as a result of reducing corporation tax rates, making the UK one of the most attractive places for businesses to establish and invest. As I have acknowledged, business investment is depressed by Brexit uncertainty. The sooner we can end it, the sooner we can get back to business.
Several hon. Members rose—
Alison Thewliss (Glasgow Central) (SNP)
When will the Government end state-sanctioned age discrimination and ensure that everybody, including those under 25, are entitled to a real living wage?
Oral Answers to Questions
John Bercow Excerpts(5 years, 2 months ago)
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Mr Speaker
The Member for Shipley will not stop going on about it until he gets it; I think of that we can be absolutely certain.
Mr Virendra Sharma (Ealing, Southall) (Lab)
Mr Sharma
I thank the Minister for that response. Last month, I surveyed businesses in my constituency and they overwhelmingly said that they wanted Brexit cancelled. Will the Chancellor stand up for British businesses, end the uncertainty and use his immense personal prestige in the Cabinet and with the Prime Minister to stop Brexit once and for all?
Mel Stride
It is just little old me, I am afraid, but I have to say that I believe we should respect the result of the June 2016 referendum, a democratic exercise that saw a higher turnout than for any other democratic event in the history of our country. The important thing now is that we get the right deal for us to leave, which we are working on. When it comes back to Parliament, I hope that the hon. Gentleman will support it.
John Glen
I thank the hon. Gentleman for his question. This Government’s strategy is to relentlessly pursue growth in the economy and opportunities for all. We have seen 18.3% growth since 2010, and a record 32.6 million people in work. We will continue to prioritise interventions around technical education, cuts in business taxes and support for new technologies to recognise the new jobs that need to be provided for.
Neil Coyle (Bermondsey and Old Southwark) (Lab)
Mel Stride
We have taken action against enablers and promoters, and the cumulative amount of time in prison that has resulted from those particular actions is in excess of 100 years.
Several hon. Members rose—
Mr Speaker
Order. We are running late, so if the hon. Member for Strangford (Jim Shannon) can manage to ask a one-sentence question with a question mark at the end of it, I will call him; if he cannot, I will not. It is a deal. [Interruption.] No, not one and a half sentence—one sentence. Mr Shannon, get in there.
Jim Shannon (Strangford) (DUP)
Can the Minister further outline whether there will be tax benefits available for small businesses that may not be able to sustain this level of wage increase? That was one sentence.
Elizabeth Truss
We need to ensure that all businesses succeed. In the spending review, we will be ensuring that business support is just as supportive of new entrants and start-ups.
Mr Speaker
This one-sentence model could catch on; that would be splendid. I call Stephen Kinnock.
Stephen Kinnock (Aberavon) (Lab)
No pressure there at all. Question 23, Mr Speaker.
Mr Speaker
No, but you can blurt it out on the question with which we were dealing, if you want. Unburden yourself, man.
Stephen Kinnock (Aberavon) (Lab)
Elizabeth Truss
I would be delighted to meet the hon. Gentleman and colleagues to discuss this important issue.
Mr Speaker
Oh, I see what the hon. Gentleman was driving at in relation to topical questions. Jolly well done; what a prescient fellow. We now come to topical questions. I call Stephen Kinnock.
Stephen Kinnock (Aberavon) (Lab)
I cannot think of another question to ask, as my question has been responded to.
Mr Speaker
I know that the hon. Gentleman does not believe in the hereditary principle, but I do not think that those words would ever have come out of the mouth of his dad. I think he should have a go. Just say “Topical 1”, young man.
Mr Hammond
HMRC does take action against errant employers. It is always pleased to receive information on suspected non-compliance and will investigate any such cases. I am sorry that the hon. Gentleman had difficulty thinking of a question. Anticipating this situation, I have at least four or five potential questions that he could have asked me, and I am happy to show them to him afterwards.
Mr Speaker
Colleagues, on a discretionary basis I am changing the order, but, believe me, I know why I am changing the order and there is a compelling reason in this instance for doing so.
Tim Loughton (East Worthing and Shoreham) (Con)
Several hon. Members rose—
Mr Speaker
Order. As is normally the case, demand exceeds supply. I am sorry to disappoint remaining colleagues, but we are well out of time and we must now move on.
Leaving the EU: Economic Impact of Proposed Deal
John Bercow Excerpts(5 years, 2 months ago)
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Urgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
Each Urgent Question requires a Government Minister to give a response on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
Ian Blackford
With respect to the Minister, this was of course a question to the Prime Minister, and it is the Prime Minister who should be answering. This is a matter of the utmost importance, because this House is going to be asked to vote on the Prime Minister’s deal. The specific question I asked was about the economic analysis that the Government have done on their deal. It is quite clear from the Minister’s answer that the Government have done no analysis on this deal. On arguably the most important matter that this House has voted on since the second world war, we do not have an economic impact assessment from the Government. It is, once again, this Conservative Government treating this House and the United Kingdom with contempt. It is a disgrace that the Government have continued to duck and dive in respect of their responsibilities.
Economists are clear: the Prime Minister’s deal is set to hit GDP, the public finances and living standards. Analysis published by the London School of Economics estimates that
“the Brexit deal could reduce UK GDP per capita by between 1.9% and 5.5% in ten years’ time, compared to remaining in the EU.”
The National Institute of Economic and Social Research has warned that
“if the government’s proposed Brexit deal is implemented, then GDP in the longer term will be around 4 per cent lower than it would have been had the UK stayed in the EU.”
Bank of England analysis states the UK Government’s deal will raise unemployment by 4% and inflation by 2%. The Prime Minister is running feart of the truth, with her Government refusing to admit the damage that her deal will do.
The Government cannot claim that their November document covers their deal. Let us look at the facts. Page 17 of the Treasury analysis looks at the modelled average free trade agreement and states:
“As such, it does not seek to define or model a bespoke agreement.”
But the Prime Minister tells us she has a bespoke deal. The Treasury analysis continues:
“This scenario is not indicative of government policy, as it would not meet UK objectives including avoiding a hard border”
in Northern Ireland.
There we have it in black and white: the Treasury analysis conducted last year does not account for the Prime Minister’s deal. So, I say to the Government, where is the analysis? MPs continue to be expected to vote on the proposed deal without the Government explaining the economic consequences. That is the height of irresponsibility.
The deal would be a disaster for Scotland, taking us out of the EU single market and customs union. We know that up to 100,000 jobs in Scotland are under threat. The Government are sticking their head in the sand. Everyone knows this Government are bringing our economy to its knees. We cannot allow the Tories to drive us off the cliff edge.
No Government can be allowed to bring forward a vote on such a significant matter without an economic assessment. It must be published. Shame on the Prime Minister if she fails to protect our economy; shame on those on the Government Benches if they allow businesses to collapse and jobs to be lost; and shame on any MP, including the Leader of the Opposition, if they march through the Lobby to deliver a deal that secures economic catastrophe.
No Member should believe that there is a binary choice; there is not. This is not a choice of no deal or this deal. Both are bad. Both will plunge our economy into an unmitigated disaster.
Mr Speaker
Order. Before I ask the Minister to apply, I very generously did not interrupt the flow of the right hon. Gentleman’s eloquence—or, indeed, for that matter the eloquence of his flow. However, by way of a public information notice, may I say to the House—this is not directed particularly at the right hon. Gentleman, as I have seen this burgeoning phenomenon in recent times—that an urgent question is supposed to be that, not an urgent oration? With whatever rhetorical force and insistence it is delivered, it is supposed to be a question and I have noticed over recent times an increasing tendency on the part of Members who have secured such an opportunity, through the courtesy of the Chair, to launch into a lengthy preamble, sometimes constituting the entirety of their remarks.
For future reference, because in future I will have to cut people off if they abuse the parameters, however inadvertently, it is supposed to be a question; a sentence of preamble is one thing, but thereafter a Member should put a series of inquiries to the Minister on the Treasury Bench. We will leave it there for now. The right hon. Gentleman has made his point, but I know that he will not misbehave again.
Mel Stride
I thank the right hon. Member for Ross, Skye and Lochaber (Ian Blackford) for his vociferous oration, but vociferous orations are no substitute for the facts. Let me remind him of some of the facts in respect of the points he made. He says that we have made no analysis of the impact of these arrangements on the United Kingdom economy, and that is simply not the case. The information we have come forward with is a robust analysis of the future outcomes of the four different scenarios that we consider in that analysis. He levels the charge that we are in some way treating the United Kingdom with contempt, and that is certainly not the case. The House has been very deeply preoccupied with matters of Brexit and the nature of how we might exit the European Union, and the Prime Minister has set out that there will be further debate this time next week to be followed, in the event that we do not pass a meaningful vote, with another amendable motion to be considered by the House.
The right hon. Gentleman also says that the deal, as he terms it, would have a negative impact on the UK economy. The analysis clearly shows that, under every single scenario it analyses, it is better to have this deal than no deal or any of the alternatives. Finally, he decried the fact that we had not put forward a bespoke deal for analysis within our analysis, and that illustrates his lack of understanding of what the future political declaration is all about, which is a range of possible outcomes. That is entirely what the analysis models.
Mel Stride
The right hon. Gentleman says that we have done no analysis of the deal, as he refers to it, but as he knows, the deal is actually the political declaration, which inherently will include a range of particular possible outcomes for that deal. That is modelled in the sensitivity analysis that we have brought forward to Parliament. [Interruption.]
Mr Speaker
Order. Mr Seely, sit down young man. It is very discourteous. The Father of the House comes in—[Interruption.] Order. Do not sit there looking at your phone, man. I am speaking to you. Show some respect and manners in the Chamber.
Mr Speaker
No, I do not need the hon. Gentleman to get up. Remain seated and behave with courtesy. What on earth has got into you?
Chris Elmore (Ogmore) (Lab)
As the Minister will know, 23% of all the European funding that comes to the UK goes to Wales. He said that discussions on the shared prosperity fund would start before Christmas; I wonder whether he has played any part in that. Leave campaigners said that Wales would not be a penny worse off if we left the European Union, so will the Minister set out how the fund will work and who will make decisions to ensure that the Welsh economy does not tank if we are to have this botched Brexit deal?
Mr Speaker
It is not really a matter of order but very poor taste, and I expect somebody as culturally sophisticated as the hon. Gentleman to behave better than that.
Alison Thewliss (Glasgow Central) (SNP)
The Scotch Whisky Association recently reported that the value of Scotch whisky exports to Mexico last year was £131.5 million—which is up 18.5% on 2017—and that Mexico is the fourth largest export market by volume for Scotch whisky. However, the Under-Secretary of State for Exiting the European Union, the hon. Member for Daventry (Chris Heaton-Harris) has confirmed by letter to the Procedure Committee that the Government
“do not…expect to replicate the existing Mexico spirits agreement in time for 29 March”.
What assessment has the Financial Secretary made of the impact that will have on geographic indicators for Scotch whisky and on the wider Scottish economy?
Mr Speaker
Order. The hon. Gentleman continues to chunter from a sedentary position about the merits or otherwise of lollipops, but when his appetite has been satisfied, and perhaps even if it has not been, we will move to the next urgent question.
Making Tax Digital
John Bercow Excerpts(5 years, 2 months ago)
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Kevin Hollinrake (Thirsk and Malton) (Con)
I draw the House’s attention to my entry in the Register of Members’ Financial Interests about my continuing business interests. My right hon. Friend has taken a very considered approach to the threshold of eligibility and the pace of the roll-out. Will he confirm not only that he will continue that approach in the next phase of the roll-out, but that our default position should be to reduce rather than increase the bureaucratic burden on small businesses?
Mr Speaker
The nation will be pleased to know that the hon. Gentleman is a distinguished estate agent.
Mel Stride
That is certainly no oxymoron, Mr Speaker. My hon. Friend is indeed a distinguished estate agent, and I thank him for his question. He has my absolute reassurance that we will not bear down on businesses with additional bureaucracy. We are there to help and support them and at the same time to ensure they are more efficient and effective in their tax affairs.
Flybmi
John Bercow Excerpts(5 years, 2 months ago)
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Mr Speaker
Order. The Minister is answering the question and there is quite a lot of sedentary chuntering on both sides, and no shortage of gesticulation, either. I am sure that Mr Knight will now behave with his usual statesmanlike reserve.
Julian Knight (Solihull) (Con)
Thank you, Mr Speaker. The Minister is clearly deeply concerned about this collapse and the wider issues affecting aviation across Europe. Will she assure the House that she will do everything she can to support our regional airports— Birmingham airport, despite its successes, is running at 35% capacity—because they are so important to our country and our regional economic diversity?
Sport in the UK
John Bercow Excerpts(5 years, 3 months ago)
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Stephen Kerr
Cricket is a fantastic sport for developing so many of the qualities that one needs to be successful in any avenue in life, so I am only too happy to join in that tribute. We should celebrate those who make sport happen—the volunteers, the coaches, the people who give selflessly of their time and their talents in order to foster the talent and enjoyment of others in sport.
Mr Steve Reed (Croydon North) (Lab/Co-op)
I congratulate the many Members on both sides of the House who have contributed to such an important debate. On my own side, my hon. Friends the Members for Tooting (Dr Allin-Khan), for Cardiff Central (Jo Stevens), for Harrow West (Gareth Thomas), for Keighley (John Grogan) and for Rhondda (Chris Bryant) each gave heartfelt speeches focusing in particular on giving a bigger voice to fans and on equalities issues in sport, from pay to participation.
I cannot take part in this debate without mentioning Crystal Palace football club in my constituency. It is known as a club that reaches out and plays a full part in the wider community. This winter, with homelessness soaring to record levels and temperatures plunging below freezing, Crystal Palace have opened the doors of Selhurst Park to provide food and shelter for people sleeping rough, which shows us that our top clubs offer much more than just sport. They are part of the fabric of our society, and they deserve recognition for that fact.
We have heard much this evening, and rightly so, about the importance of grassroots sport and sport for all, yet this is an area where funding cuts have had the greatest impact. ITV News reports that local authority sports funding is down by £400,000 in London alone over just five years. Councils are struggling to cope with Government funding cuts of up to 80% since 2010, at a time when demand for high-cost statutory services like social care is rising, the result of which is severe cuts to non-statutory services, including grassroots sports.
The Government’s latest plans to remove deprivation levels from what they are, I presume, ironically calling the fair funding formula will slash what remains of grassroots sports in our most deprived communities. These are the communities where violent crime is rising fastest. There is ample evidence that diversionary activities for young people prevent those most at risk from getting involved in crime, yet this Government run the risk of further driving up violent youth crime with a perverse approach of targeting their harshest cuts on our very poorest communities.
Towards the end of last year, the Government trumpeted their new loneliness strategy. Sports are some of the most effective ways to tackle loneliness among young people, yet grassroots sport funding is facing yet more cuts. The simple truth is that the Government will not make any impact on issues such as loneliness if they keep cutting the very things that allow communities to tackle loneliness.
Last summer, the Government published their obesity strategy. The King’s Fund points out that about a third of children under 15 in the UK are overweight or obese. It tells us that children are becoming obese at an earlier age and staying obese for longer and that children from lower-income household are more than twice as likely to be obese as those in higher-income households. The Government’s reaction to that so far has been negligent. As my hon. Friend the Member for Tooting has previously pointed out, in the past two years alone, Government cuts have seen 100 swimming pools drained, 12 athletics tracks closed, 350 sports halls shut and 800 grass pitches sold off. How are we, as a country, to tackle this health and inequalities crisis if the Government allow grassroots and community sports to disappear at this rate?
Sport has the power to tackle some of the great challenges of our age, whether loneliness, obesity or mental ill health, yet the Government have chosen to cut sport to the bone. Sport can help to prevent these problems. Spending on grassroots sport is not money down the drain; it is a sensible investment that saves money in the long run by keeping people healthy and bringing our communities back together. The Government need to match their warm words tonight with action. They need to get serious about the power, impact and importance of sport for all of our communities.
Mr Speaker
It was very brief. I call the Minister, who need not feel obliged to speak until 10 o’clock, as I know she made a very full contribution earlier.
HMRC Estate Transformation
John Bercow Excerpts(5 years, 3 months ago)
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Mel Stride
If the hon. Gentleman gives me a moment, I will do precisely that, as I always do.
The answers to the hon. Lady’s questions relating to staff and the way in which we will be handling the staff are as I have set out. All staff will have at least one year’s notice of any impending move. The mapping process that HMRC undertook, as it went into the detail of where to locate the regional hubs, was very thorough. It took into account a number of principles, which I will come on to in a moment to answer another of the hon. Lady’s questions. Among those principles is the issue of the travel-to-work time, and every single employee’s home location was mapped against the possible new alternatives under consideration at the time those decisions were being made. I have also raised the issue of the transition offices, which are of course there, among other reasons, to provide employment opportunities for the staff.
The location principles—this comes to the questions the hon. Lady asked about why we have chosen one particular location rather than another, or indeed the existing location of the legacy offices—come down to eight key principles. They include transport connections, which are of course excellent in both Edinburgh and Glasgow, and the talent pool there, such as in universities—for example, Edinburgh and Glasgow have world-class universities—as well as the housing that is available, the quality of the schools and all the matters that will sustain the recruitment of the teams we will be bringing together in these 21st-century and much more sophisticated hubs for dealing with our tax purposes.
The hon. Lady raised the issue, which I know she has raised on previous occasions, of the location of these hubs in relation to our ports and points of entry into the United Kingdom. I think I can reassure her that, quite outside this whole process of the transitional arrangements, we will of course ensure that Border Force, HMRC and the Department for Environment, Food and Rural Affairs have the personnel available at those locations to make sure that they are able to run imports and exports efficiently. There is a general premise, however, in the suggestion that the offices somehow need to be close to people all the time. In fact, since 2014, it has been the case—[Interruption.]
Mr Speaker
Order. I think there is a sense in the Chamber that there is an inadvertent abuse going on. This is not a debate; it is a statement. The Financial Secretary has twice said that he commended the statement to the House: he said it in response to the first set of questions, and he had already said it when he delivered the statement. A brief and pithy encapsulation of the argument is what is required. A long dilation is not only not required, but notably irritating to the House.
Mel Stride
I can only apologise, Mr Speaker, and I obviously accept your guidance on this matter. I believe I was asked about 20-plus questions between the two Front Benchers, but I take your point.
I will deal with one last point. The hon. Member for Aberdeen North (Kirsty Blackman) specifically asked me how many of the 5,000-plus personnel that HMRC is recruiting in the context of our Brexit planning will be based in Scotland. We are up to about 3,500 currently, and I will write to the hon. Lady to make sure that we provide her with the information she has sought.
Oral Answers to Questions
John Bercow Excerpts(5 years, 3 months ago)
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Robert Jenrick
The Government are making a range of plans to support businesses in the event of all Brexit outcomes. For example, Her Majesty’s Revenue and Customs is increasing its guidance to firms online and by writing to more than 140,000 businesses across the country to ensure that they make appropriate plans. As I have already described, in the Budget we made a whole range of moves to support small businesses across the country—business rates relief, the future high streets fund—all of which have been Barnetted. It is for the Scottish Government to come forward with their plans for how they intend to support small businesses; at the moment, there is only silence.
Mr Speaker
I note that “Barnett” has now become a verb, and we are grateful to the Minister for his ingenuity.
Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
You’re the Chancellor of the Exchequer. You should have made it yourself.
Mr Speaker
Order. The hon. Gentleman is a cerebral denizen of the House. I know he is arguing the toss about what he thinks is the inapplicability of the personal views or the professional opinion of the Chancellor, but he should not offer a lecture from a sedentary position. We are accustomed to hearing this eloquence when he is on his feet. We do not need to hear him when he is in his seat.
Nicky Morgan (Loughborough) (Con)
The next most important update on the deficit will be the Office for Budget Responsibility’s statement around the time of the spring statement, but the OBR has been clear that it can only make a forecast once it knows the Government’s plans for Brexit, so could the Chancellor give the House an update on when he thinks the OBR will be able to produce that work for the spring statement in relation to the Brexit timetable?
Several hon. Members rose—
Mr Speaker
If the hon. Member for Bolton West (Chris Green) wishes to shoehorn his inquiry into the question of which we are treating now, it is a very neat fit.
Chris Green (Bolton West) (Con)
Mr Hammond
Some of the expenditure being undertaken by Departments will be required in any case for our post-EU future, whether we leave with a deal or no deal, but I have made no bones about the fact that some of the expenditure is of a precautionary nature. The expenditure will be nugatory if the deal is agreed and we leave with a smooth trajectory. Every responsible Government, across all areas of activity, undertake expenditure to deal with potential contingencies, to ensure that the country is prepared for eventualities that may arise. It is proper that we should do so.
Rebecca Pow (Taunton Deane) (Con)
Deal or no deal, one deal that is really working is the nuclear sector deal. Does my right hon. Friend agree that that is a hugely important venture in the south-west and that we should support and encourage it? So far, it has put £900 million into the south-west economy.
Mr Hammond
My hon. Friend demonstrates ingenuity and she is absolutely right: the nuclear sector deal is very important.
Priti Patel (Witham) (Con)
Mr Speaker
There is a lot to be said for Essex. The right hon. Lady and I can agree about that.
The Chief Secretary to the Treasury (Elizabeth Truss)
Mr Speaker is right: the only way is Essex. My right hon. Friend the Member for Witham (Priti Patel) is a great champion of the fantastic county of Essex, and she will have noticed that the Ministry of Housing, Communities and Local Government has already launched a fair funding consultation on local government spending. In the spending review, we will, of course, look at the different funding streams and make sure they are fair for all parts of the country.
Kevin Brennan (Cardiff West) (Lab)
Mr Hammond
Jazz is alive and well in Runnymede. Perhaps the hon. Gentleman will give me the precise address of the Runnymede Jazz Club later. The measures we announced in the Budget to support high street and retail more generally apply to all retail outlets with a rateable value of less than £51,000. If he has a specific point to make about music venues, I or one of my colleagues would be happy to meet him to talk about it.
Several hon. Members rose—
Mr Speaker
I feel sure that the House will want to hear the Strangford Zebedee. The hon. Member for Strangford (Jim Shannon) has been bouncing up and down on virtually every question; I do not want him to feel socially excluded.
Jim Shannon (Strangford) (DUP)
They always wish to hear the Strangford perspective on life, but that is by the bye.
Will the Chancellor outline the possible negative effects that reducing the deficit could and would have on the defence budget in the next three years?
Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
On a point of order, Mr Speaker. I may have erroneously misled the House when I said that the Minister said that the Government were creating 75 businesses a minute. It has been pointed out to me that he actually said 75 businesses a second.
Mr Speaker
It is not for the Speaker to be the arbiter of truth. Knowing the ambitions of the hon. Member for Rhondda (Chris Bryant), it is important that he knows what he is letting himself in for. He would have important responsibilities, but the adjudication upon the matter of truth would not be one of them.
Mr Speaker
In deference to the seniority of the hon. Gentleman, I will hear his point of order if he insists.
Mr Sheerman
I just wanted to thank you for correcting the record, Mr Speaker. I would be glad if the record could be put straight. As you said, the figure was 75 businesses a second. [Interruption.]
Mr Speaker
I am getting advice that is the product of the scholarly cranium of the Clerk of the House, but I think I will leave the hon. Gentleman to find his own salvation. We will leave it there.
Finance (No. 3) Bill
John Bercow ExcerptsTuesday 8th January 2019
(5 years, 4 months ago)
Commons ChamberRead Full debate Finance Act 2019 View all Finance Act 2019 Debates Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: Consideration of Bill Amendments as at 8 January 2019 - (8 Jan 2019)
Yvette Cooper
It is not clear to me how that strengthens our negotiating position with countries all over the world that might then keep their tariffs extremely high on our goods. The whole point is that, if we crash out on WTO terms, it undermines our negotiating power. Whether one thinks that is about negotiating with the EU or negotiating with other countries, we are weakening our position abroad.
We also have the impact on the NHS, which is spending £10 million on fridges: it will have to put more money into this which could be put into patient care. The police have warned that we will be less safe. They and the Border Force would immediately lose access to crucial information that they check 500 million times a year to find wanted criminals, dangerous weapons, sex offenders and terror suspects. We will not be able to use European arrest warrants to catch wanted criminals who fled here having committed serious crimes abroad. We use those warrants 1,000 times a year to send people back to face justice in the countries where those crimes have been committed. If those 1,000 suspects commit more crimes here, MPs will need to explain to the victims why we took away the power from the police to arrest and extradite them by tumbling into no deal.
Mr Speaker
Order. I am listening to the right hon. Lady, as always, with great interest and enormous respect, but may I just very gently point out that we need to hear from other Members with amendments in the group and from the Minister? I am not certain how many more Members we need to hear, but my guesstimate is at least four, and we have 31 and a half minutes.
Yvette Cooper
Thank you, Mr Speaker. I apologise to anybody else who wants to intervene, but I will not take any further interventions and try to conclude my remarks.
Some of those who say they support no deal have said that it is unpatriotic to rule it out. I understand that there are strong emotions, but I hope we could be more respectful of each other than that, because I believe that it is patriotic to stand up for manufacturing, for families who may be on the breadline and face increases in food prices, for our NHS, and for British citizens abroad who could lose their rights.
The other objection that people have raised is that this is unnecessary because the Prime Minister’s deal is the one they want as the way forward. I simply disagree, but I think the reality is not about my view but the view in the House: there is not, at this stage, support for the Prime Minister’s deal, and I do not think there could be. We have to be able to respond to what happens next.
Finally, I have heard some say that they want the imminent threat of no deal to persuade people to back the Prime Minister’s deal, if not now, then later. But brinkmanship in Parliament is not the way to resolve this and get the best deal for the country. This is too serious for us to play a massive Brexit game of chicken. The country cannot afford to wait to see who blinks first.
I hope that Ministers, as may have been rumoured, will accept this amendment and accept the principle behind it. The Government should get agreement on a deal before 29 March, get explicit agreement on no deal before 29 March, or, if that fails, commit to seeking an extension of article 50, so that there is time to sort this out. The amendment does not solve the Brexit challenges that we have ahead and the many intense debates that we will no doubt have about the best way forward, but it gives us an opportunity to rule out the worst way forward and to do so in a way that is calm, measured and sensible. That is why I hope that amendment 7 will have support from across this House.
Several hon. Members rose—
Sir Oliver Letwin (West Dorset) (Con)
Thank you, Mr Speaker. I rise to support amendment 7, to which I am a signatory.
My right hon. Friend the Member for Mid Sussex (Sir Nicholas Soames), who is sitting next to me, and I have calculated that we have been in the House, collectively, for 56 years, and we have only ever, either of us, voted once against the Conservative Whip. This will be the second time that we will both be voting against the Conservative Whip, and I want to explain why. First, I want to say one thing about what this amendment is not. The right hon. Member for Normanton, Pontefract and Castleford (Yvette Cooper) and my right hon. Friend the Member for Loughborough (Nicky Morgan) gave eloquent expositions, but what they did not mention is that, in contrast to some things that have been suggested, it has no impact whatsoever on the Government’s ability to prepare for Brexit—it is about what the Government do after Brexit.
Secondly, clause 89 is an item that those of us who have been Ministers for a number of years will recognise as an “abundance of caution” clause. Some group of lawyers somewhere stuck in the bureaucracy clearly alerted Ministers to the possibility that they did not have certain unspecified powers and said it would be a good idea to have some unspecified powers in case the lack of unspecified powers turned out to be important. I do not think therefore that this amendment, in itself, will be likely to have a huge impact, if any, on the Government of this country.
That brings me to the question of why I am supporting this amendment. The answer is that it is most extraordinarily important to make it clear to the Government that it is not just this amendment. It is the precedent that this amendment sets, which is that on any power taken in any Bill in relation to the exit of the UK from the EU, if there is a majority in the House today and there continues to be a majority against no deal, it will be possible to bring forward similar amendments. It is my proposal that we should indeed do that. I want to make it abundantly clear to those of my hon. Friends who are thinking of voting against the Prime Minister’s deal, which I shall be supporting, that the majority in this House, if it is expressed tonight, will sustain itself, and we will not allow a no-deal exit to occur at the end of March.
My last point is on why I am so passionate about not allowing such an exit. Many Members, including the Father of the House, have spoken eloquently about the long-term dangers to our economy of WTO trading and so on. My right hon. Friend the Member for Wokingham (John Redwood), for example, very much disagrees with that. I do not take a particular view about that. My preference is for a continued free trade deal with the EU, which is by far our largest trading partner, but in contrast to some, I do not want to argue that there would be a disaster in principle if we were on WTO terms. I do not believe it would be disastrous. I think it is suboptimal but not disastrous.
For five long years, I was in charge of the resilience of this country. During that period, I saw many examples of our civil service, military and security apparatus being prepared or not being prepared for certain issues that closely affected the wellbeing of our country. That is one reason why two years ago I passionately argued—my right hon. Friend the Member for Wokingham will recall an occasion a year ago when I made that argument even more forcefully—that the Government should undertake serious preparation for a no-deal exit. That would have had the effect that some of my hon. Friends mentioned. It would have altered our negotiating position. It was not done.
I have been in awesome detail through the papers produced. I have listened to the briefing for Privy Counsellors. I have consulted senior officials across Whitehall. I know what the RAG ratings of red, yellow and green mean—nothing. I know what it is actually to have prepared for dealing with the gas interconnectors, the electricity interconnectors and the many other details concerned.
Some of my hon. Friends and others in the country believe they can assure that under circumstances where we wreck the deal, refuse to make all the payments that the EU is expecting and falsify its expectations of a reasonable departure, the EU will then reasonably set out to work with us in a calm and grown-up way to ensure a smooth departure. It may be so. I am in no position to deny that it will be. I do not make lurid projections. Anybody who believes that they know it will be so is deluded.
I do not believe that we in this House can responsibly impose on our country a risk that may be severe or serious short-term disruption, for the sole purpose of gratifying the possibility that we avoid certain eventualities that certain Members of Parliament would prefer to see avoided and on which nobody in this country ever voted because they were never asked to vote on it. Under those circumstances, I will be voting with the right hon. Member for Normanton, Pontefract and Castleford against my own Government and very much against my own will, and I will continue to do so right up to the end of March, in the hope that we can put paid to this disastrous proposal.
Mr Speaker
The right hon. Gentleman’s succinctness is a textbook of how to help the House, and I hope it will now be closely studied.
Kirsty Blackman
In the interests of time, I will be very brief. I want to make it clear to the House that the SNP intends to push new clause 18 to a vote. I will briefly speak to some of the other new clauses and amendments that we have put forward. A couple of them relate to the expenditure implications of the UK now having to take charge of carbon and greenhouse gas taxes. They are about making sure that the Government are clear with the House about why they are spending this money and about the money they intend to spend before they do so. This is an additional cost that would be associated with the UK leaving the EU, which is a concern of ours. Obviously, we would not have to spend this money if we remained in the EU.
Several hon. Members rose—
Mr Speaker
Order. Just before I call the next Member, we must hear from the Minister, and the Opposition Front Bench should really have the chance, very briefly, to comment on its own lead new clause before we come to the vote.
Mr Chris Leslie (Nottingham East) (Lab/Co-op)
I will be brief, Mr Speaker. I will want to move amendment 8, which stands in my name and in those of many hon. Members on both sides of the House. In many ways, it complements amendment 7, which was tabled by my right hon. Friend the Member for Normanton, Pontefract and Castleford (Yvette Cooper).
Amendment 8 would institute a commencement motion for the powers that the Treasury is seeking. Clause 89 might have been wrapped up as fairly minor and inconsequential, but essentially the Government are asking for pretty whopping permission to start legislating for no-deal arrangements. At this stage in the game, I really do not think that right hon. and hon. Members should be delegating our powers entirely to Ministers in this way without question. I know it is difficult for the right hon. Member for West Dorset (Sir Oliver Letwin) to rebel for a second time, on amendment 7, but I would like to persuade him to do so for a third time on amendment 8. A commencement motion is an important adjunct so that we can give the House and hon. Members the chance to express how they wish Brexit to go forward—so that we have the opportunity to express our view. A commencement motion would allow hon. Members the chance to do just that.
As things stand—certainly if the Government’s Brexit proposal is negatived next week—there could be 21 days or perhaps another seven days before anything is voteable on in this place. My own view is that before we start delegating powers to Ministers on these issues, or indeed on others, we need to start saying that enough is enough. Hon. Members need a chance to help to guide the way forward. There are many different views on these particular issues—the hon. Member for Grantham and Stamford (Nick Boles) has his particular preference and I have mine—but we need to provide for ourselves the time and the space to express them. Amendment 8 would simply provide for a commencement motion.
I hope that the Minister will recognise there is a strong cross-party opinion that we need now to give voice to Parliament. We cannot just drift into a no-deal situation. Parliament does want to take back control. He should concede and accept the amendment now.
Mr Speaker
Order. If the right hon. Gentleman feels able and willing to express his views in a minute, I will be delighted to hear him—I hope he will not be offended—but otherwise I will call the Opposition Front-Bench spokesperson.
The Minister of State, Department for Transport (Jesse Norman)
On a point of order, Mr Speaker. I understand that in the previous debate there was some unhappy and unfortunate talk about the potential for the M3 to be closed in connection with a lorry park. I want to put it on the record, from the Government’s perspective, that the Government have absolutely no intention whatever of closing the M3 in connection with a lorry park. Therefore, the record should stand corrected as from now.
Mr Speaker
I am very grateful to the hon. Gentleman for what he has said, which is on the record and will be widely observed.
Mr Marcus Jones (Nuneaton) (Con)
On a point of order, Mr Speaker. Several media outlets are quoting that I have signed a letter to the Prime Minister saying that I will vote against a no-deal Brexit. I would like to put it on the record that this is not correct. Can you advise me whether it is in order for a Member of this House to put another Member’s name to a letter when they have not given their consent to doing so? Given the febrile environment at the moment, can you make the point to the media that they should check their facts before they publish such information?
Mr Speaker
The hon. Gentleman arrogates to me almost superhuman powers if he thinks that I can advise the media upon the imperative of first checking facts before printing a story. I appreciate his confidence in me, but I fear that he has an assessment of my capabilities that is sadly unmatched by the reality. Nevertheless, he has put his point on the record, and doubtless he will circulate it more widely amongst the people of Nuneaton.
New Clause 2
Review of the effectiveness of entrepreneurs’ relief
“(1) Within twelve months of the passing of this Act, the Chancellor of the Exchequer must review the effectiveness of the changes made to entrepreneurs’ relief by Schedule 15, against the stated policy aims of that relief.
(2) A review under this section must consider—
(a) the overall number of entrepreneurs in the UK,
(b) the annual cost of entrepreneurs’ relief,
(c) the annual number of claimants per year,
(d) the average cost of relief paid per claim, and
(e) the impact on productivity in the UK economy.”—(Anneliese Dodds.)
This new clause would require the Chancellor of the Exchequer to review the effectiveness of the changes made to entrepreneurs’ relief by Schedule 15.
Brought up, and read the First time.
Anneliese Dodds (Oxford East) (Lab/Co-op)
I beg to move, That the clause be read a Second time.
Mr Speaker
With this it will be convenient to discuss the following:
New clause 9—Review of changes to entrepreneurs’ relief—
“(1) The Chancellor of the Exchequer must review the impact on investment in parts of the United Kingdom and regions of England of the changes made to entrepreneur’s relief by Schedule 15 to this Act and lay a report of that review before the House of Commons within six months of the passing of this Act.
(2) A review under this section must consider—
(a) the effects of the provisions on business investment,
(b) the effects of the provisions on employment, and
(c) the effects of the provisions on productivity.
(3) In this section—
“parts of the United Kingdom” means—
(a) England,
(b) Scotland,
(c) Wales, and
(d) Northern Ireland;
“regions of England” has the same meaning as that used by the Office for National Statistics.”
This new clause would require a review of the impact on investment of the changes made to entrepreneurs’ relief which extend the minimum qualifying period from 12 months to 2 years.
New clause 10—Review of geographical effects of provisions of section 9—
“The Chancellor of the Exchequer must review the differential geographical effects of the changes made by section 9 and lay a report of that review before the House of Commons within six months of the passing of this Act.”
This new clause would require a geographical impact assessment of income tax exemptions relating to private use of an emergency vehicle.
New clause 16—Personal allowance—
“The Chancellor of the Exchequer must, no later than 5 April 2019, lay before the House of Commons an analysis of the distributional and other effects of a personal allowance in 2019-20 of £12,750.”
This new clause would require a distributional analysis of increasing the personal allowance to £12,750.
New clause 17—Review of changes to capital allowances—
“(1) The Chancellor of the Exchequer must review the effect of the changes to capital allowances in sections 29 to 34 and Schedule 12 in each part of the United Kingdom and each region of England and lay a report of that review before the House of Commons within six months of the passing of this Act.
(2) A review under this section must consider the effects of the changes on—
(a) business investment,
(b) employment, and
(c) productivity.
(3) The review must also estimate the effects on the changes if—
(a) the UK leaves the European Union without a negotiated withdrawal agreement
(b) the UK leaves the European Union following a negotiated withdrawal agreement, and remains in the single market and customs union, or
(c) the UK leaves the European Union following a negotiated withdrawal agreement, and does not remain in the single market and customs union.
(4) In this section—
“parts of the United Kingdom” means—
(a) England,
(b) Scotland,
(c) Wales, and
(d) Northern Ireland;
“regions of England” has the same meaning as that used by the Office for National Statistics.”
This new clause would require a review of the impact on investment, employment and productivity of the changes to capital allowance in the event of: Brexit with no deal; Brexit with single market and customs union membership; Brexit without single market and customs union membership.
New clause 24—Review of changes to capital allowances (No. 2)—
“(1) The Chancellor of the Exchequer must review the effects of the changes made by sections 29 and 30 of this Act within six months of the passing of this Act.
(2) A review under this section must include an assessment of—
(a) the cost to the Exchequer of these changes,
(b) changes to business behaviour that are likely to arise as result from these changes, including (but not limited to) levels of business investment in buildings, plant and machinery, and
(c) the impact of these changes on businesses in regions of England.
(3) A review under this section must compare these assessments, so far as practicable, with an assessment of the impact of replacing non-domestic rates in England with a tax on the value of commercial land.
(4) In this section, “regions of England” has the same meaning as that used by the Office of National Statistics.”
This new clause would require the Government to assess the effects on businesses and the public finances of new capital reliefs introduced by this Act and require the Government to compare these reliefs with replacing business rates with a tax on commercial land values.
Amendment 12, in clause 5, page 2, line 24, leave out subsection (4)
This amendment would delete provisions removing the legal link between the personal allowance and the national minimum wage.
Government amendment 2.
Amendment 34, in schedule 15, page 297, line 42, leave out “29 October 2018” and insert “6 April 2019”.
Amendment 34, along with Amendment 35, would remove the retrospective effect of the new qualifying conditions for entrepreneurs relief.
Government amendment 3.
Amendment 35, in schedule 15, page 298, line 10, at end insert—
“(6) In relation to disposals on or after 29 October 2018, the amendments made by this Schedule to the definition of “personal company” do not apply in relation to any day before 29 October 2018.”
See Amendment 34.
New clause 4—Review of late payment interest rates in respect of promoters of tax avoidance schemes—
“(1) The Chancellor of the Exchequer must review the viability of increasing any relevant interest rate charged by virtue of the specified provisions on the late payment of penalties for the promoters of tax avoidance schemes to 6.1% per annum and lay a report of that review before the House of Commons within six months of the passing of this Act.
(2) In this section, “the specified provisions” means—
(a) section 178 of FA 1989, and
(b) sections 101 to 103 of FA 2009.”
This new clause would require the Chancellor of the Exchequer to review the viability of increasing interest rates on the late payment of penalties for the promoters of tax avoidance schemes to 6.1%.
New clause 15—Report on consultation on certain provisions of this Act (No. 4)—
“(1) No later than two months after the passing of this Act, the Chancellor of the Exchequer must lay before the House of Commons a report on the consultation undertaken on the provisions in subsection (2).
(2) Those provisions are—
(a) section 15 and Schedule 3,
(b) section 16 and Schedule 4,
(c) sections 19 and 20,
(d) section 22 and Schedule 7,
(e) section 23 and Schedule 8,
(f) sections 46 and 47,
(g) section 83.
(3) A report under this section must specify in respect of each provision listed in subsection (2)—
(a) whether a version of the provision was published in draft,
(b) if so, whether changes were made as a result of consultation on the draft, (c) if not, the reasons why the provision was not published in draft and any consultation which took place on the proposed provision in the absence of such a draft.”
This new clause would require a report on the consultation undertaken on certain provisions of the Bill – alongside New Clause 11, New Clause 13 and New Clause 14.
Government new clause 6—Intangible fixed assets: restrictions on goodwill and certain other assets.
New clause 8—Review of changes to Oil activities and petroleum revenue tax—
“(1) The Chancellor of the Exchequer must review the effect of the changes to Oil activities and petroleum revenue tax in sections 36 and 37 and Schedule 14 in Scotland and the United Kingdom as a whole and lay a report of that review before the House of Commons within six months of the passing of this Act.
(2) A review under this section must consider the effects of the changes on—
(a) business investment,
(b) employment, and
(c) productivity.”
This new clause would require the Government to review and publish a report on the investment, employment and productivity impact of the Bill’s fiscal measures on the North Sea sector.
New clause 11—Report on consultation on certain provisions of this Act—
“(1) No later than two months after the passing of this Act, the Chancellor of the Exchequer must lay before the House of Commons a report on the consultation undertaken on the provisions in subsection (2).
(2) Those provisions are—
(a) section 5,
(b) section 6,
(c) section 8,
(d) section 9,
(e) section 10,
(f) Schedule 15,
(g) section 39,
(h) section 40,
(i) section 41, and
(j) section 42.
(3) A report under this section must specify in respect of each provision listed in subsection (2)—
(a) whether a version of the provision was published in draft,
(b) if so, whether changes were made as a result of consultation on the draft, and
(c) if not, the reasons why the provision was not published in draft and any consultation which took place on the proposed provision in the absence of such a draft.”
This new clause would require a report on the consultation undertaken on certain provisions of the Bill – alongside New Clause 13, New Clause 14 and New Clause 15.
New clause 14—Report on consultation on certain provisions of this Act (No. 3)—
“(1) No later than two months after the passing of this Act, the Chancellor of the Exchequer must lay before the House of Commons a report on the consultation undertaken on the provisions in subsection (2).
(2) Those provisions are—
(a) section 61, and
(b) Schedule 18.
(3) A report under this section must specify in respect of each provision listed in subsection (2)—
(a) whether a version of the provision was published in draft,
(b) if so, whether changes were made as a result of consultation on the draft,
(c) if not, the reasons why the provision was not published in draft and any consultation which took place on the proposed provision in the absence of such a draft.”
This new clause would require a report on the consultation undertaken on certain provisions of the Bill – alongside New Clause 11, New Clause 13 and New Clause 15.
New clause 23—Review of income tax revenue—
“(1) The Office for Budget Responsibility must review the revenue raised by income tax within six months of the passing of this Act.
(2) A review under this section must consider revenue raised by—
(a) the rates of income tax specified in sections 3 and 4, combined with
(b) the basic rate limit and personal allowance specified in section 5.
(3) A review under this section must also consider the effect on revenue of—
(a) raising each of the rates of income tax specified in sections 3 and 4 by one percentage point, and
(b) setting the basic rate limit for the tax years 2019-20 and 2020-21 at £33,850.
(4) A review under this section must also include a distributional analysis of the effect of introducing the policies specified in paragraphs (3)(a) and (3)(b).
(5) The Chancellor of the Exchequer must lay before the House of Commons the report of the review under this section as soon as practicable after its completion.”
This new clause would require the OBR to estimate how much money would be raised by increasing all rates of income tax by 1p and freezing the higher rate threshold.
New clause 26—Review of changes made by sections 79 and 80—
“(1) The Chancellor of the Exchequer must review the effects of the changes made by sections 79 and 80 to TMA 1970, and lay a report on that review before the House of Commons not later than 30 March 2019.
(2) The review under this section must include a comparison of the time limit on proceedings for the recovery of lost tax that involves an offshore matter with other time limits on proceedings for the recovery of lost tax, including, but not limited to, those provided for by Schedules 11 and 12 to the Finance (No. 2) Act 2017.
(3) The review under this section must also consider the extent to which provisions equivalent to section 36A(7)(b) of TMA 1970 (relating to reasonable expectations) apply to the application of other time limits.”
This new clause would require the Treasury to review the effect of the changes made by sections 79 and 80 and compare them with other legislation relating to the recovery of lost tax including specifically the loan charge provisions of Schedules 11 and 12 to the Finance (No. 2) Act 2017.
Government new schedule 1—Intangible fixed assets: restrictions on goodwill and certain other assets.
Government amendments 4 to 6.
Amendment 22, in clause 53, page 34, line 14, at end insert—
“(5) The Chancellor of the Exchequer must review the expected effects on public health of the changes made to the Alcoholic Liquor Duties Act 1979 by this section and lay a report of that review before the House of Commons within one year of the passing of this Act.”
This amendment would require the Chancellor of the Exchequer to review the impact of the revised rates on cider and wine on public health.
Amendment 23, in clause 60, page 44, line 17, at end insert—
“(3) The Chancellor of the Exchequer must review the effects of a reduction in air passenger duty rates from 1 April 2020 and lay a report of that review before the House of Commons within six months of the passing of this Act.
(4) A review under subsection (3) must in consider the effects of a reduction on—
(a) airlines,
(b) airport operators,
(c) other businesses, and
(d) passengers.”
This amendment would require the Chancellor of the Exchequer to review the effects of a reduction in air passenger duty.
Amendment 36, in clause 79, page 52, line 24, leave out “12 years” and insert “8 years”.
Amendments 36 to 45 would reduce the time limits HMRC have to make an assessment of income tax or capital gains tax (Clause 79) and inheritance tax (Clause 80) to eight years, rather than 12 years, where there is non-deliberate offshore tax non-compliance.
Amendment 37, page 52, line 27, at end insert—
“(2A) Where the loss of tax is brought about carelessly by the taxpayer, an assessment may be made at any time not more than 12 years after the end of the year of assessment to which the lost tax relates. This is subject to section 36(1A) above and any other provision of the Taxes Acts allowing a longer period.”
See Amendment 36.
Amendment 38, page 53, line 22, after “(2)” insert “or (2A)”.
See Amendment 36.
Amendment 39, page 53, line 28, at end insert—
“(7A) An assessment may also not be made under subsection (2) or (2A) if—
(a) before the time limit that would otherwise apply for making the assessment, information is made available to HMRC by the taxpayer on the basis of which HMRC could reasonably have been expected to become aware of the lost tax, and
(b) it was reasonable to expect the assessment to be made before that time limit.”
See Amendment 36.
Amendment 40, page 53, line 34, at end insert—
“(8A) Subsection (7A) will not apply in cases where the taxpayer is subsequently found to have failed to provide all relevant information available to HMRC, or to have provided misleading information.
(8B) For the purposes of subsection (7A), whether information has been made available to HMRC is to be determined in line with section 29(6) above.”
See Amendment 36.
Amendment 41, page 53, line 35, after “(2)” insert “or (2A)”.
See Amendment 36.
Amendment 25, page 54, line 1, leave out “2013-14” and insert “2019-20”.
This amendment, alongside Amendment 26, would mean that new section 36A of the Taxes Management Act 1970 did not apply retrospectively.
Amendment 26, page 54, line 5, leave out “2015-16” and insert “2019-20”.
This amendment, alongside Amendment 25, would mean that new section 36A of the Taxes Management Act 1970 did not apply retrospectively.
Amendment 42, in clause 80, page 54, line 19, leave out “12 years” and insert “8 years”.
See Amendment 36.
Amendment 43, page 54, line 20, at end insert—
“(2A) Where the loss of tax is brought about carelessly by a person liable for the tax (or a person acting on behalf of such a person), proceedings for the recovery of the lost tax may be brought at any time not more than 12 years after the later of the dates in section 240(2)(a) and (b).”
See Amendment 36.
Amendment 44, page 55, line 2, at end insert—
“(7A) Proceedings may also not be brought under this section if—
(a) before the last date on which the proceedings could otherwise be brought, information is made available to HMRC by a person liable for the tax (or a person acting on behalf of such a person) on the basis of which HMRC could reasonably have been expected to become aware of the lost tax, and
(b) it was reasonable to expect the proceedings to be brought before that date.”
See Amendment 36.
Amendment 45, page 55, line 8, at end insert—
“(8A) Subsection (7A) will not apply in cases where a person liable for the tax (or a person acting on behalf of such a person) is subsequently found to have failed to provide all relevant information available to HMRC, or to have provided misleading information.
(8B) For the purposes of subsection (7A), whether information has been made available to HMRC is to be determined in line with section 29(6) TMA 1970.”
See Amendment 36.
Amendment 27, in clause 82, page 58, line 9, leave out from “section” to “may” in line 10.
This amendment would provide for all regulations under the new power (EU double taxation directive) to be subject to the affirmative procedure.
Amendment 28, page 58, leave out lines 13 to 17.
See Amendment 27.
Amendment 18, in schedule 1, page 148, line 34, at end insert—
“21A The Chancellor of the Exchequer must review the expected revenue effects of the changes made to TCGA 1992 in this Schedule, along with an estimate of the difference between the amount of tax required to be paid to the Commissioners under those provisions and the amount paid, and lay a report of that review before the House of Commons within six months of the passing of this Act.”
This amendment would require the Chancellor of the Exchequer to review the effect on public finances, and on reducing the tax gap, of the changes made to capital gains tax in Schedule 1.
Amendment 17, in schedule 2, page 177, line 21, at end insert—
“Part 1A
Review of effects on public finances
17A The Chancellor of the Exchequer must review the expected revenue effects of the changes made to capital gains tax returns and payments on account in this in this Schedule, along with an estimate of the difference between the amount of tax required to be paid to the Commissioners under those provisions and the amount paid, and lay a report of that review before the House of Commons within six months of the passing of this Act.”
This amendment would require the Chancellor of the Exchequer to review the effect on public finances, and on reducing the tax gap, of the changes made to capital gains tax in Schedule 2.
Amendment 29, page 177, line 42, at end insert
“unless the amendment relates to a disposal of an asset or assets resulting in a capital loss between the completion date of the disposal in respect of which the return is made and the end of the tax year in which the disposal is made.
(2A) In that case, an amendment may be made to take into account any capital losses which have arisen after the completion date and within the same tax year.”
This amendment would allow UK residents to submit an amended residential property return where a capital loss on non-residential assets is incurred after the completion of the residential disposal and within the same tax year.
Amendment 19, in schedule 5, page 211, line 45, at end insert—
“Part 2A
Review of effects on public finances
34A (1) The Chancellor of the Exchequer must review the revenue effects of this Schedule and lay a report of that review before the House of Commons within six months of the passing of this Act.
(2) The review under sub-paragraph (1) must consider—
(a) the expected change in corporation tax paid attributable to the provisions in this Schedule, and
(b) an estimate of any change, attributable to the provisions in this Schedule, in the difference between the amount of tax required to be paid to the Commissioners and the amount paid.”
This amendment would require the Chancellor of the Exchequer to review the effect on public finances, and on reducing the tax gap, of Schedule 5.
Amendment 21, in schedule 6, page 221, line 26, at end insert—
“13 The Chancellor of the Exchequer must review the expected change to payments of Diverted Profits Tax and any associated changes to overall payments made to the Commissioners arising from the provisions of this Schedule, and lay a report of that review before the House of Commons within 6 months of the passing of this Act.’
This amendment would require the Chancellor of the Exchequer to review the effect on public finances of the diverted profits tax provisions in the Bill.
Anneliese Dodds
As my hon. Friends have set out a number of times already today, this is a Finance Bill that continues the Government’s previous programme of austerity for the many while the very best-off people are protected. This Conservative Government chose to tie the hands of this House with regard to amending the Bill, so there are very few means we can adopt to have an impact on any of these measures. None the less, new clauses 2 and 4 would require the Government to at least review their regressive policy approach. I realise that I need to compress my remarks, so I will speak briefly to each of those new clauses and then to new clause 26, which pushes in the same direction, and new schedule 1, which in many respects exemplifies this Government’s slipshod approach, particularly to tax policy making.
ONS Decisions: Student Loans
John Bercow Excerpts(5 years, 4 months ago)
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Elizabeth Truss
That issue is being considered by the Augar review, which is properly being led by the Secretary of State for Education, who is sitting beside me. From a Treasury perspective, my role is to ensure that we get good value for money from our public finances and that we are fair and transparent in the way we present things. That is what the OBR and the ONS look at.
Mr Speaker
Ah, the key there was a reference to the ONS. It would be helpful if colleagues would frame their questions with reference to the Office for National Statistics, because that is the gravamen of the matter.
Dr Roberta Blackman-Woods (City of Durham) (Lab)
The fact that the ONS has said that student loans will push up the UK’s deficit undoubtedly provides an incentive to reduce fees, but that could create a huge problem for university funding. I hope the Government will take stock and introduce a new system of student finance that does not rely on loans, massive student debt or punitive interest rates, but gives our universities the stable funding they need to thrive.
Several hon. Members rose—
Mr Speaker
Order. Perhaps the right hon. Member for New Forest West (Sir Desmond Swayne) can offer us a reprise of his masterclass on brevity.
Sir Desmond Swayne (New Forest West) (Con)
Given the provenance of this accounting rule, why did the ONS not get on to it earlier?
Elizabeth Truss
I suggest that the hon. Gentleman look at the results. The fact is that, since 2009, there has been a 68% increase in the number of low-income students going to university.
Mr Speaker
What the hon. Member for Glasgow North East (Mr Sweeney) conveyed to the House was quite extraordinarily interesting, but most of it did suffer from the notable disadvantage that it did not constitute a question. We got to a question mark very belatedly.
Derek Thomas (St Ives) (Con)
The ONS decision actually reminds us that the education of a large number of university students is funded by the taxpayer. That is welcome for those who come from deprived areas and may not earn the £25,000-plus that we would like. Will the Chief Secretary look at fairness across the system, so that people who do not go to university but want to study and train locally can get the skills and opportunities they need?