Iraq: Coalition Against ISIL

Debate between Stephen Doughty and Shabana Mahmood

Friday 26th September 2014 Commons Chamber

[Shabana Mahmood (Birmingham, Ladywood) (Lab)]

I am grateful for the opportunity to contribute to the debate today. I will support the motion before the House, but I do so with deep concern and real worry about the future. That is not because I do not want ISIL to be destroyed—I do—but because I believe that our history in Iraq, with the war of 2003, has eroded trust, created suspicion about our motives for getting involved and perhaps caused some of the factors that has led us to where we are today. Without genuine, prolonged efforts to achieve a political settlement, I have fears about where this may ultimately end. I am deeply concerned about the potential scale of civilian deaths that may occur, bearing in mind the scale of those that have already occurred and that are occurring even as we speak. Such decisions are deeply difficult—I often feel that we have to choose between the lesser of two evils—but a political solution is the only way to ensure that peace can be won and, in the end, that it can be a lasting peace.

The starting point for making my decision is that those in ISIL are fanatics and monsters; they are not Muslims. They have hijacked the name of Islam, the religion that I, as well as tens of thousands of my constituents and hundreds of thousands of British Muslims, follow and practice, and which we all love. They have hijacked and dishonoured the name of our religion. I am a Sunni Muslim, like the majority of British Muslims, and like them I abhor and am repulsed by the fact that those in ISIL describe themselves as true Sunni Muslims: they are not, and we reject them utterly.

[Stephen Doughty]

My hon. Friend is making a crucial point. Will she join me in welcoming the fact that in Cardiff, as well as in many communities throughout the UK, Muslim leaders from across the Muslim spectrum and leaders from other communities and faiths have come together to condemn ISIL’s activities not only in Iraq and Syria, but in recruiting and perverting young people in this country?

Finance (No. 2) Bill

Debate between Stephen Doughty and Shabana Mahmood

Tuesday 1st April 2014 Commons Chamber

[Shabana Mahmood]

Yet after all that action, this Chancellor and this Government have given with one hand and taken away a hell of a lot more with the other. The hon. Gentleman knows that is true. He also knows that people will be worse off in 2015 than they were in 2010, which says everything we need to know about this Government’s priorities.

What is there for young people? Long-term youth unemployment has doubled under this Government, and 900,000 young people are out of work. What is there in the here and now, in this Bill, to help them? Not much. The Chancellor spoke yesterday of full employment, but where are the policies that would make that happen? The number of young people out of work for one year or more has almost doubled under this Chancellor, and what this Government have delivered—the Work programme—has returned more people to the jobcentre than have been found new work, while only 5% of disabled people have been helped to find a job.

The hon. Member for Dover (Charlie Elphicke), who is not in his place, cited the welcome decrease in long-term youth unemployment in Birmingham, Ladywood. He is not aware, though, that Birmingham’s Labour-run council administration has introduced a scheme called the Birmingham jobs fund, based on the Labour Government’s future jobs fund, specifically to tackle youth unemployment. That is why we have seen a decrease in long-term youth unemployment in my constituency and in other Birmingham constituencies. Although he might not have meant to congratulate my colleagues at Birmingham city council, I shall certainly pass his congratulations on to them.

Where was the help for small businesses—the backbone of economic growth in this country—who are crying out for extra support? We have said that instead of going ahead with the additional 1% cut in corporation tax, the Government should use that money to cut and then freeze business rates so that small and medium-sized enterprises can get some real help now. During last week’s debate on the Charter for Budget Responsibility, the Government tried to portray Labour’s policy as an anti-business proposal that would increase business taxes, but when it was pointed out to them that that argument flies only if one considers small businesses not to be real businesses, they seemed to change tack. Today, the Secretary of State for Education tried to posit it as setting one set of businesses against the other, but that totally and utterly misses the point.

Our proposal would use all the money saved by not going ahead with the corporation tax cut for the largest companies to support small businesses. At 21%, the corporation tax rate would remain competitive, but that switch in spending would strike a better and fairer balance. Business rates have already gone up by an average of £1,500 under this Government, and many businesses, including more than one in 10 small businesses, are now paying more in business rates than in rent. Unless things change, business rates will have risen by an average of nearly £2,000 by the end of this Parliament.

This Government have failed to help small businesses, and so the next Labour Government would cut business rates in 2015 and freeze them in 2016.

[Stephen Doughty]

I wonder whether my hon. Friend has had the same experience when talking to small businesses in her constituency as I have had in mine. The top two concerns that they have raised with me up and down the streets of Cardiff and Penarth are business rates and energy prices—two things that this Bill does nothing about.

[Shabana Mahmood]

My hon. Friend makes a powerful point. His experience as a constituency MP is exactly the same as mine. Almost every business that comes to see me at my surgery is struggling with its business rates and energy costs.

What does the Bill say about the top rate of income tax? Well, it remains at 45p. This Government have given an average tax cut of more than £107,000 to the 8,000 millionaires in our country. They seem to think that if they keep talking about the increase in the personal allowance, they will make people forget that the combined impact of the tax and benefit changes is that a typical household is £900 a year worse off, and that the richest in our country are getting an absolutely huge tax cut. The Government are desperate to be able to claim that the 50p rate raised as little money as possible because they want to make it easier for themselves to justify their decision to give a tax cut to the wealthiest at a time when ordinary families are really struggling.

The Government’s own assessment claims that the cost of cutting the rate to 45p, excluding all behavioural changes, was over £3 billion. To justify the tax cut, they argued that most of the potential revenue would be lost as a result of tax avoidance. Government Members were very excitable about the Government’s record on tax avoidance, which I will come to in a moment. But surely a Government as proud as they are of that record would have taken some targeted anti-avoidance measures to stop people avoiding the 50p rate. Instead, they ducked the opportunity.

The Government also claim that tax revenues rose after they cut the top rate of tax, but both the Office for National Statistics and the OBR have said that many of the highest earners moved their income and delayed their bonuses by a year after the 2012 Budget to benefit from the lower top rate of tax. That shifting of income will have cost the Treasury millions of pounds in lost revenue. When the deficit is high it cannot be right to cut the top rate of tax. The next Labour Government will put that rate back to 50p while we get the deficit down.

There was some excitement on the Government Benches about the Government’s record on tax avoidance. Although they like to pretend that that record is strong, it is nothing to write home about. The DOTAS—disclosure of tax avoidance schemes—measures were introduced by a Labour Government in 2004. Every time Government Members stand up and take credit for those measures, I shall pass on their thanks to the previous Labour Administration, who introduced them.

The Government have made a number of assumptions in their calculations of the value to the Exchequer of extending the accelerated payment scheme to both DOTAS and the general anti-abuse rule. Although HMRC is successful in about 80% of the cases it litigates, I find it hard to see why the same 80% success rate has been applied to potential cases under the GAAR when a case on the GAAR has yet to go to court. We will scrutinise the Government’s numbers in Committee: they have a history of overestimating the impact of their avoidance measures. We have spoken a lot today about the Swiss deal, which raised £2.3 billion less than expected. I am sure that the Exchequer Secretary will not—[Interruption.]