(6 years, 4 months ago)
Commons ChamberI point out to the hon. Gentleman that 10,000 more teachers are now working in our schools than under the Labour Government. He should look at the results that children are achieving and the improvements that we have seen, particularly in reading. Under Labour, we were among the worst in Europe, whereas we are now among the best.
The Government are investing in the infrastructure of the south-west. We are investing £2 billion in the strategic road network, including to transform the A303/A30/A358 into an expressway. We are delivering £146 million of investment in Cornish rail and, thanks to my hon. Friend’s efforts, we are investing £79 million in the A30 to St Austell link road.
Cornish wages continue to lag around 30% below the national average. The national productivity investment fund is designed specifically to increase wages and living standards; will my hon. Friend tell the House how much of that fund is being spent in Cornwall and the south-west?
We are investing significant funds, including £92 million to tackle congestion in the south-west and a portion of a £200 million fund for full fibre, and we are providing £40 million for small and medium-sized enterprises through the British Business Bank, which will go to Cornish small businesses.
(7 years ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
It is a pleasure to speak in this debate; I congratulate my hon. Friend the Member for Dudley South (Mike Wood) on securing it and on his excellent opening speech.
I have the incredible honour and privilege of representing the constituency that contains St Austell Brewery, which since 1851 has been brewing high-quality beer in the centre of St Austell under the ownership of the same family. It now enjoys incredible success and exports a number of its brands around the world.
The three years of beer duty cuts and the subsequent freeze were incredibly positive, not just because of the money they saved on the cost of a pint of beer, but because they sent the brewing industry the clear message that the Government backed it and were behind it. That gave brewers the confidence to plan for the future and invest in products, plant and machinery to grow their businesses and the market. Unfortunately, the rise in the retail prices index earlier this year has undone virtually all the good work of the cut and freeze years and has sent a negative message to the industry.
I encourage the Minister to take back to the Chancellor and the Treasury the strong message that this year we really need at least a freeze in the beer duty, to restore confidence in the industry. We are a Conservative Government, after all; we believe in low taxes, and we know that punitive taxes do not work. Cutting, or at least freezing, the beer duty will allow the sector to continue to grow, with more and more jobs being created.
I must also mention the small breweries’ relief scheme for brewers who produce up to 60,000 hectolitres a year—I did not know what a hectolitre was until a couple of days ago, but there we go. That threshold is clearly acting as a brake on small breweries that prevents them from investing and growing beyond it. Some form of tapering would be very welcome, because we have created a squeezed middle—brewers who are just above the threshold but are paying much higher rates of beer duty. I believe it is time for a review, and I ask the Government to work with the industry to get an overall view of small breweries’ relief and see whether the limit can be increased.
Does my hon. Friend support my request that the Minister consider applying small breweries’ relief to cider producers, who do not enjoy that advantage at present?
I absolutely agree that cider should be considered for the relief as well.
The Budget gives us an opportunity to send the clear message to the brewing industry and our pubs that we back them, we understand how essential they are and we need to take action to support them.
I thank the Labour and Scottish National party Front Benchers for agreeing to shave some time from their speeches, to allow all Back Benchers time to get their points across.
(7 years, 7 months ago)
Commons ChamberI am familiar with the right hon. Gentleman’s figures, and Treasury officials have met campaigners over several years to look at them. We will always look at the evidence, but we disagree with the campaign’s economic assessment. Together with HMRC, the Treasury assesses that such a cut would cost around £10 billion a year—approximately £7 billion for restaurants and bars, and about £3 billion for leisure and accommodation.
What further steps are being taken to support the tourism industry, particularly in places such as Cornwall, where tourism is so important to our local economy?
We look to support the tourism sector in a whole range of ways, and the sector is doing very well. We have seen great increases in the number of tourists, and my hon. Friend is a great advocate for his region. Tourism is one of the highest performing sectors in the economy. For example, the UK has one of the highest VAT registration thresholds in the EU— [Interruption.] The highest. That helps many small businesses that are providing goods and services to tourists without charging VAT at all.
(7 years, 8 months ago)
Commons ChamberI have set out our long-term plan. The hon. Gentleman knows the fiscal figures, because they were published last week. As I have said, I do not resile at all from the commitment that I have made that we will, overall, be broadly fiscally neutral. I will introduce additional measures—[Interruption.] Well, it would not be appropriate for me to do so today, but I will bring forward additional measures in the autumn Budget to address the cost of the changes that I have announced today. By the way, if I could just give him a piece of advice, before he goes in too hard on keeping manifesto promises, he might just want to check his own party’s record in government on that particular score.
On behalf of the 9,000 self-employed people in St Austell and Newquay, may I thank the Chancellor for his statement today and for being willing to listen to the sensible voices of Conservative Members and the business community in making this change? Will he confirm that there is absolutely nothing wrong in someone legitimately choosing to be self-employed and in charge of their own work destiny, and that this party will always be on the side of the entrepreneurs, who are the heart of our economy?
Yes. I can say to the self-employed of St Austell and, indeed, more widely across the UK that this Government will always support enterprise and those who start and grow businesses. As I said in the Budget speech, we believe that people should have choices about the way they work. There are very many good reasons for choosing self-employment, and there are many good reasons for choosing to incorporate. It is incumbent on us to make sure that unfair tax benefits are not one of the things that drive people to make such decisions.
(7 years, 8 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
I beg to move,
That this House has considered beer duty.
It is a pleasure to serve under your chairmanship, Sir Roger, and to open this debate on a very important matter. First, I must acknowledge and thank my hon. Friend the Member for Gower (Byron Davies), who secured this debate only to find that it clashed with other, unavoidable parliamentary business. He therefore asked if I would step in for him. His loss is my gain. I am sure he would want me to mention right at the very beginning Gower Brewery, which produces some excellent ales—I remember a very enjoyable evening with my hon. Friend, drinking Gower Gold. It is right to acknowledge that in his absence.
The debate is timely, taking place the day before the Budget. We hope once again for good news from the Chancellor and another cut in the much despised beer duty. There is no doubt that the brewing and pub industry has faced a great many challenges in recent years, which have brought a wind of change blowing through one of the oldest and best loved traditional businesses in the UK. Public houses—or, as we all more affectionately know them, pubs—and breweries have experienced enormous change and upheaval over the past 30 years or so. The vast and often overlooked brewing and hostelry industry is an icon of our nation, cited by tourists the world over as one of the reasons for visiting the UK. Almost 900,000 people work in pubs and the supply chain, from agriculture to brewing, logistics and the licensed trade.
I congratulate my hon. Friend on introducing the debate. He rightly points to the vast number of jobs that the industry supports, many of which are in peripheral areas of the country such as our constituencies. Does he agree that action on beer duty, which is up to 10 times that of the duty paid in our neighbouring continental countries, is a vital step?
My hon. Friend is absolutely right. Whereas many other industries are centralised in very specific areas or regions of our country, the pub industry is spread right across it and provides much needed jobs in many of the more rural areas. He is also right that we need to reduce the gap between the duty we pay in this country and the duty paid in many other countries, and I will come on to that later.
The hon. Gentleman rightly identifies the role of rural pubs, many of which serve those who come out to the countryside from our conurbations. What impact does he think the ill-thought-out proposals from the Local Government Association to cut the number from 2 pints or 1.5 pints to 1 pint will have on those pubs?
I assume the right hon. Gentleman is talking about the guidelines for alcohol consumption. I suspect that is a subject for another day, but I understand his point.
No, I am not talking about the guidelines; I am talking about the drink-drive limit. Most of the offences are recorded at the much higher level of about 150 mg. A reduction in the limit could have a dramatic effect on many rural pubs, let alone rugby clubs, Royal British Legion clubs and so on.
I now understand the point the right hon. Gentleman is making. I would never drink and drive at all. That attitude has become much more the norm in today’s society, where most people consider that drinking anything and driving should be avoided. I am not entirely sure that I agree with his point.
The brewing and pub industry not only employs 900,000 people but attracts many younger people to its workforce—in fact, 46% of those employed in the sector are under 25 years old. That level of employment among the young is a critical factor, especially in rural constituencies such as the one I represent in Cornwall. While many start out in basic roles, they go on to become professionals in the trade or elsewhere—for example, working as chefs, licensees or successful businesspeople in their own right, and employing others.
That said, the news has not always been good in recent times. Some 17,000 pubs have closed in the past three decades, and while the closure trend has slowed markedly of late, many communities will grieve the loss of their local, which all too often is the only pub in the area.
Although it is not the only factor, does the hon. Gentleman agree that cuts in beer duty increase investment and employment opportunities, particularly for the young, while increases do the opposite?
I wholeheartedly agree. Lower taxes generally encourage investment and growth in a sector, and I will press for that as the debate goes on.
Does my hon. Friend share my sense of pride that it was a Conservative Government who in 2012 finally put an end to the beer duty escalator—a measure that had led to duty going up 42% between 2008 and 2012? Following that, in 2014 beer sales increased and an estimated 21,000 jobs were created in the industry.
My hon. Friend may have been reading my notes, because that is a point I will come on to highlight.
There are many reasons why pubs have closed. Some of them were badly managed, and some lacked investment to keep the facilities up to date. Although I believe that the smoking ban was the right thing to do, and it is popular among many pub goers, we have to acknowledge that it stopped smokers visiting the pub quite so often. There are also changing social habits, with more people drinking at home as a result of cheap alcohol available in supermarkets and other outlets.
Those factors have all contributed, but it is also undeniable that the dreadful and despised beer duty escalator introduced in 2008 had a devastating effect on the industry. Annual duty rises under the escalator led to beer duties rising to among some of the highest anywhere. Even now, following successive years of duty reduction by this Conservative Government, our pints remain heavily taxed at around 52p on a 5% alcohol by volume pint, compared with 4p in other key beer-brewing nations such as Germany and Spain—an enormous and disproportionate difference that needs to be addressed.
There is much more happening now, with a revolution in the old craft of brewing and selling beer to the UK’s 32 million beer drinkers. Numerous microbreweries have opened up and craft beer and real ale are rising in popularity. I have the great privilege of having a great example of a local family-run brewery in my constituency. St Austell Brewery has been a roaring success in recent years, particularly since the launch of its excellent Tribute ale. It now makes many excellent beers, and I spent an enjoyable day during the recent recess assisting master brewer Roger Ryman in making a batch of Proper Job. I count the fact that I managed to make more than I drank that day as a notable success.
While it is right to recognise concerns about alcohol abuse, we must note that the majority of people enjoy healthy levels of drinking. Given the social benefits that come with a visit to the local pub, it makes no more sense to celebrate pub closures than it does to close roads because some motorists speed.
On the subject of craft breweries, will the hon. Gentleman, who rightly attacks the beer duty escalator, acknowledge the very considerable role played by the duty exemption for small breweries that are getting off the ground? That was a major factor in the explosion of the craft brewery business and was introduced by my right hon. Friend the Member for Wentworth and Dearne (John Healey) when he was at the Treasury.
I will happily agree. The support given to microbreweries to develop right across the country—they are now producing very high-quality, excellent craft beer—is a success that should be noted.
Does my hon. Friend agree that larger breweries, such as Carlsberg in my constituency, also play an important role in providing beer for people, but the beer duty also has an impact on them?
I wholeheartedly agree that the beer duty affects the whole industry. That is why I believe it needs to be addressed.
One interesting statistic I read was that communities that have a well loved pub are happier. Pubs have that very positive effect on local communities. I was dismayed when a local Liberal Democrat councillor in St Austell recently suggested tightening up the local licensing regulations and limiting the number of pubs to curb incidents of antisocial behaviour. That misses the point entirely, because well run pubs promote responsible drinking, and in my experience they have a positive impact by reducing crime and antisocial behaviour, rather than being the cause of the problem.
I am pleased that the hon. Gentleman has mentioned St Austell —I am very partial to a pint of Clouded Yellow myself. A family brewery, John Willie Lees, is a major employer in my constituency. I fully support the comments that the hon. Gentleman is making about social drinking. I am sure that he will agree that we should be promoting pubs, keeping them open and stopping people buying cheap alcohol and drinking alone at home.
I wholeheartedly agree. Not only are pubs great places for community cohesion, but they promote responsible drinking in a safe environment, which we should wholeheartedly support.
I thank the hon. Gentleman for giving way again; he is very generous. On responsible drinking, another change has been the move to lower alcohol beer. Is the hon. Gentleman aware that beer with an alcoholic strength of less than 3.5% is subject to 66% more duty than very high-strength cider at 7.5%? Does he agree that we could do more to incentivise the consumption of beers under 3.5%?
I agree. We do need to look in particular at the amount of duty on high-strength ciders, because it is disproportionately low and should be increased. The duty on lower strength beers should also be looked at, to encourage their consumption. The industry was challenged by the Government to reduce consumption of alcohol units by 1 billion by 2015. By reformulating and introducing lower alcohol drinks, the industry surpassed that target ahead of schedule, which we should acknowledge and welcome. There is also a fall and clear downward trend in problems relating to under-age drinking in pubs, as licensees—pub landlords—have become more responsible in their approach to that matter.
The problems associated with drinking have less and less to do with pubs and more and more to do with sales of cheap alcohol in supermarkets and other off-licence establishments. It is clear that pubs can and do have a very positive impact on their local communities. Pubs are experiencing a revolution. They have caught the spirit of the times and of this Government: there is a belief and a strategy about getting best value for money and a happier, better outcome for everyone by making best use of what we have and combining our efforts.
Let us take as an example the village of Nanpean in my constituency of St Austell and Newquay. Once a bustling, busy community, almost solely reliant on the booming china clay industry, it has declined in recent years. That and changing shopping habits over the years meant that the Co-op supermarket, four general stores, the butcher’s, the bakery, the fish and chip shop and the post office all had to close. No shop remained—none was viable as a stand-alone unit; none could survive with separate overheads and wage bills. Thanks to innovation, though, the Grenville Arms pub in Nanpean now houses the post office and a shop, and the combination of the three has proved a great success. Each one helps the others to provide key services to the local community of about 2,000 people. The shop sells essentials and locally produced food, and the return of the post office is a real asset to the whole community. The scheme has created new jobs and, with its fresh role at the centre of village life, the pub has become a community meeting point.
All that was achieved by converting a disused room. Of course, there was a cost. That was met by the licensee and an organisation that was originally the inspiration of His Royal Highness the Prince of Wales. Pub is The Hub is a voluntary, not-for-profit organisation helps pubs in rural communities to innovate and thrive. By working with all interested parties—breweries, licensees, councils and local communities—it has had success in bringing together talents and opportunities and meeting needs. It gives guidance to groups seeking to buy their local pub to save it from closure. Besides advice, it gives grants—modest sums of money that make a big difference. Pub is The Hub says that, on average, for every pound in grant provided, an additional £1.60 is forthcoming from other sources.
I am very grateful to the Under-Secretary of State for Communities and Local Government, my hon. Friend the Member for Brigg and Goole (Andrew Percy), who is responsible for pubs. He continues to champion Pub is The Hub and has this year supported the organisation further with a £50,000 grant. Heineken matched the funding, giving Pub is The Hub further assistance to continue its excellent work across England and Wales and now, I believe, in Scotland.
A revolution is under way in the pub trade, and we need to do a lot more to support it. The simplest and best way to do that is by continuing the process of reversing the crazy, punitive, unfair and mean-spirited hikes in beer duty imposed by the previous Labour Government. The UK’s excise duty rate for beer is much higher than that in most European countries. Despite the three duty cuts by the Conservative Government in recent years, the UK has the third highest duty rate in the European Union. Forty per cent. of all beer duty paid in the EU is paid by the UK, yet we drink only 12% of the beer.
Tax on beer has been a sorry story. From 2008 to 2012, there were steep and relentless tax increases, with a staggering 9.1% hike in March 2008 and an 8% increase in December of the same year. Then came the beer duty escalator, which increased beer duty by 2% above inflation every year. By 2012, beer duty had increased by 42% since 2008. Although other factors played their part, that was a disaster for the industry, with thousands of pubs closing and tens of thousands of job losses. Despite the hike in duty, revenues rose by just 12%. Punitive taxes do not work.
In 2013 the beer duty escalator was, mercifully, dropped. Then came further relief with three 2% cuts and a freeze in 2016. There is revived confidence in the sector. Beer sales have increased, which in turn has led to higher levels of investment in pubs and breweries. Tax cuts work. They boost trade at home and give this major exporting industry extra confidence in its future. In 2016 the value of UK beer exports was a healthy £584 million; it was up 17% on the previous year. So there we have it: a multimillion-pound industry that exports the world over, employs the young in record numbers, attracts visitors to our shores and yet has in its sights ensuring that villagers still have a post office and the lonely have a place to go and be part of the local community.
I and many other hon. Members present want to thank the former Chancellor and the Government. Despite the enormous task of deficit reduction and the difficulties that lay ahead, they chose to reduce beer duty, seeing the beneficial effects that that would ultimately have. Confidence and investment are returning but now we need another hand up—we need a further reduction in beer duty. Seven out of 10 alcoholic drinks sold in pubs are beer, and 82% of those are brewed in the UK. The most effective way of keeping our community pubs open and trade buoyant is by continuing to support them and giving them the confidence they need. I am calling for a revival of the beer duty escalator, but escalators go in both directions. I want an escalator that goes the other way and reduces beer duty significantly.
I thank all hon. Members for their contributions to this debate, which has been positive. There has been a great deal of unity among all parties on the importance of the sector to our economy, to jobs particularly for our young people, to our communities and to the Exchequer, and on the vital role that pubs play. I can reflect on the comment that the Minister made and recognise the reduction in beer duty and the drop in the amount of beer duty going to the Exchequer because of that. However, because the industry has grown and employed more people, I suspect that the overall tax take by the Exchequer has not dropped too much because extra income tax, national insurance and other taxes have been paid as a result of the growth. So there is a balancing act.
There has been a clear message from the debate today. Lowering beer duty has a positive effect on the industry. We have heard about an increase in confidence and about increasing investment to enable the industry to produce better beer and more beer more efficiently. That contributes to the overall growth of our economy and will become even more important once we have left the EU. We must ensure we have a very robust beer and pubs industry in this country that can play its part in making sure our economy is strong going forward.
I am grateful to the Minister, who has listened and taken on board the points made. I am grateful for her reassurance that the industry is in the minds of Government as they make decisions. I am sure we all look forward to—let us hope—good news tomorrow from the Chancellor.
Question put and agreed to.
Resolved,
That this House has considered beer duty.
(8 years ago)
Commons ChamberThe Treasury will continue to work with the Department for Business, Energy and Industrial Strategy to drive forward a smart energy system. The Government have committed to implementing the National Infrastructure Commission’s recommendations in full.
My principal responsibility is to ensure the stability and prosperity of the economy. In the current circumstances, that requires a combination of near-term measures to respond to the shock that the economy has received and longer-term measures to manage the structural adjustment as the UK transitions out of the EU and to address the UK’s long-term productivity challenge.
Today is my 30th wedding anniversary, so will the Chancellor join me in wishing the long-suffering Mrs Double a happy anniversary? Does he agree that the marriage tax allowance is a demonstration of this Government’s support for marriage? However, take-up has been low, so ahead of the autumn statement is the Chancellor considering increasing the allowance? If he is not, may I encourage him to do so?
I certainly join in wishing my hon. Friend and his wife a very happy 30th anniversary. Taking my queue from last week, I probably will not suggest how Mrs Double might commemorate the event.
My hon. Friend is quite right to highlight the value of marriage in society. I hope that I can reassure him that the Government remain firmly committed to supporting this important institution through the marriage allowance. Eligible couples could benefit by up to £432 this year, and we have just passed the landmark of 1 million families who have made successful applications. I agree with my hon. Friend that take-up of the marriage allowance is not high enough, but HMRC will launch a new campaign early next month to increase awareness and take-up.
(8 years, 1 month ago)
Public Bill CommitteesTwo arguments are being advanced. One is that there should be no matching requirement at all. I am afraid I reject that for the reasons I have given, and I will try to provide more evidence. I understand the point that the hon. Member for Clwyd South makes and I understand that there was movement during the passage of the previous Bill with regard to the ratios. With all of these things it is sometimes about trying to strike a reasonable balance, and I think 1:10 is a reasonable number. It is an easy number from an administrative point of view and it keeps matters much more straightforward for the charities in question. I am glad however that she supports the principle that there should be a matching rule to avoid fraud. I will say a bit more about why we think that is important.
The Government’s own assessment found that 92% of charities claiming gift aid for the tax year 2014-15 claimed on donations of £500 or more. That would have allowed them to claim the maximum small donations top-up allowance, which at the time was £5,000.
It is worth adding that while the 8% of charities claiming on less than £500 of donations would not have benefited from the maximum small donations allowance because of how the matching rule operates, the vast majority would have been entitled to a proportion of that allowance. In fact, 98% of charities claiming gift aid in 2014-15 claimed sufficient amounts to receive a small donations allowance of at least £1,000. I submit to the Committee that with 98% of charities claiming enough to get an allowance of at least £1,000, the rules are not proving a barrier; they are being used and people are managing quite well with them. The figures do not support the assertion that the matching rule is a major barrier. Indeed, I think most people would say that it strikes the balance of reasonableness.
As I have said, the Bill is a simplification measure—it removes the two-year registration requirement and the gift aid history requirement—and leaves only the matching rule as the link between the gift aid small donations scheme and the wider gift aid scheme. The Government have always been clear that a link to gift aid is necessary to allow HMRC to carry out effective compliance activity. I ask hon. Members on both sides of the Committee to support that principle.
Does the Minister agree, in response to the concerns raised by the SNP spokesman, that the Government have done an awful lot to simplify the gift aid claiming process for charities? I speak as someone who has been involved in operating gift aid claims for charities for many years. The process now is incredibly simple in its online form, so it is not the burden that perhaps it was in the past.
I think that is right, and I thank my hon. Friend for that intervention. We are really trying to make this as simple and straightforward as possible, but we need some safeguards. That is why the matching rule is important. I would suggest that requiring HMRC to publish a detailed analysis of compliance activities and the efficacy of anti-abuse rules could be unhelpful. I would hate us inadvertently to provide a roadmap for fraudsters. If there was a requirement to publish that information, it would provide valuable information to that dishonest minority whom the Government are trying to root out.
I would like to reassure the Committee that HMRC works with charity regulators to ensure that charities are properly regulated, the abuse of charities is properly and robustly dealt with, and the tax reliefs claimed are used for charitable purposes. If a charity is suspected of fraud, HMRC will share that information with the Charity Commission, which can consider further action, including removal from the charities register. We have made it easier to report fraud. I hope that it goes without saying that all tax policy remains under constant review, and this scheme is no exception. The Government will of course continue to monitor the effectiveness of the small donations scheme, as they do with all charitable tax relief.
We are very keen to make sure that the good name of all those charities that do wonderful work at international, national and local level is not abused. I will give the Committee just one example. In May this year, three individuals were jailed for a total of 22 years for defrauding HMRC of £5 million in fictitious gift aid claims. I am afraid that there are more examples of large sums of money where that is true. Those people are out there and, as the report I cited earlier pointed out, they are very quick to spot loopholes, however well intentioned.
HMRC publishes a comprehensive national statistics package, to which I alluded earlier, which allows anyone to scrutinise the efficacy of the Government’s support for charities. However, requiring in legislation that the Government publish separate assessments within six months of the passage of the Bill is both arbitrary and unnecessary and, for the reasons I explained, in the case of one of the reviews it is likely to be impossible to prove what it seeks to prove. I therefore urge hon. Members not to press their new clauses to a vote.
(8 years, 6 months ago)
Commons ChamberIt is a great pleasure to follow the hon. Member for Penistone and Stocksbridge (Angela Smith), who is an excellent member of the Environment, Food and Rural Affairs Committee.
May I take the unusual step of offering congratulations to the right hon. Member for Islington North (Jeremy Corbyn), the Leader of the Opposition, on his birthday today? He and I share the same birthday date—I am still trying to work out what else we share.
I welcome the Gracious Speech and the continuation of our very good economic policies, which are enabling our businesses and our constituents to create more jobs. We are reducing taxes to lower-paid workers and stimulating this economy and reducing debt at the same time. In particular, I welcome the greater emphasis on the digital economy, and the fact that we are giving every household a legal right to fast broadband. That will be a challenge.
I am sure that, like me, my hon. Friend welcomes the Government’s announcement of the universal service obligation on broadband, but will he join me in asking the Government to look at extending that obligation not just to residential properties but to business properties? In places such as Devon and Cornwall, it is crucial that our businesses get connected to superfast broadband as well.
I could not agree more. We are talking about people and about businesses. Out in the rural areas, we have many very good businesses, farms and individuals who need broadband and superfast broadband. I am talking about not just the money that needs to be put in to getting broadband into these areas, but the fact that we need to use every technology available. The Blackdown Hills and part of Exmoor are in my constituency, and not all areas will get fibre optic cable however we try to do it, so there needs to be both wireless and satellite operations. We must ensure that we get that broadband out. It is essential that we put as much pressure as we can on BT and others to deliver, as there is, at the moment, too much of a monopoly. There is not enough competition out there delivering broadband to all of our constituents.
I also welcome the modern transport Bill and the fact that we will have to change our taxation on cars. We have spent too many years concentrating on reducing the tax on diesel cars only to find now that nitric oxide appears to be the killer and that we need to re-educate people to buy hybrid cars and electric cars. We need to do a great deal to change people’s attitudes towards what they buy. There has been too much concentration in the past on the amount of carbon coming from a car, rather than on the nitric oxide, which is causing so many of the hotspots in our cities.
I also welcome the education Bill, and the fact that we are stepping back slightly from the idea that we will impose academies across the country. A Conservative policy is much more about evolution than revolution. Therefore, we must give people a chance to get there. I have many rural primary schools and small schools in my constituency. There is this idea of bringing together 3,000 or 5,000 children. I would probably need between 50 and 100 schools to create that number of pupils. We must be careful about how we deliver such a policy. There is also another problem: some local authorities are better education authorities than others, and that must be taken into account when considering changes.
I also welcome the lifetime savings Bill. The idea that we can help young people and people on lower wages to save is essential. In the past, not only did Labour spend too much taxpayers’ money, but we spent too much as individuals and did not save enough. I know that Governments love people to spend so that it boosts the economy, but there is also a great need for people to have greater savings. That is what we want to see happening.
I welcome the fact that the Queen’s Speech is very much a continuation of the Government’s policies in order to keep going. The one thing we must not do is change course. We must keep bringing down the deficit. On 23 June we need to make sure that we keep this country in the European Union so that we can prosper and grow our economy.
(8 years, 10 months ago)
Commons ChamberUrgent 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
HMRC has been conducting an inquiry in this specific case for a number of years, and has reached the conclusion that it is satisfied with the position that Google has reached. As for the additional payment, it is based on the facts that HMRC has seen, and on the detailed inquiry and exhaustive work that it has undertaken over many years, not numbers drawn up on the back of an envelope.
Hon. Members on both sides of the House share the public’s anger that Google has been able to get away with paying so little tax for so long, and many of them also share the feeling that this deal is unsatisfactory, but will the Minister confirm that the £130 million that the Government have extracted from Google is precisely £130 million more than the Labour Government ever got from it?
(9 years, 2 months ago)
Commons ChamberI will not give way at this moment. People were receiving the equivalent of full-time pay on part-time hours, and in that situation can we blame someone for not wanting to take on more hours? It is a real problem, and many other employers have made the same point to me. The problem is widespread.
My hon. Friend might be interested to hear that as a small business owner, I share his experience. I have offered pay rises and additional hours to members of my staff, and they have turned them down because of the tax credits that they would lose as a result.
I thank my hon. Friend and emphasise that this is not a fantasy. This is not a think tank or a theory; this is the real world that we have experienced. With tax credits it is difficult to incentivise staff in their interest to make the most of their talent. I genuinely believe that every person was born with incredible skills and talents. We should seek to help people make the most of those talents, but tax credits provide a perverse disincentive to do so and place a ceiling on wages and ambition.