Finance Bill

Debate between Thomas Docherty and Sheila Gilmore

Monday 2nd July 2012 Commons Chamber

[Thomas Docherty]

I often think that the Business Secretary would make an excellent contestant on “Strictly Come Dancing”, such is his fleetness of foot. In fact, I am sure that tomorrow morning there will be leaflets out in Brent and elsewhere condemning and disowning this Government policy, as if Liberal Democrat votes had not yet again carried the argument, leaving Ipswich Town footballers and others better off and our greatest generation worse off. This is a poverty of policy. It is the worst example of what happens when the quad sits up drinking and it will leave the country with a dreadful hangover.

[Sheila Gilmore]

The policy on the higher tax rate is, in effect, an endorsement of tax avoidance, which worries me greatly. Some of us sat through the Finance Bill Committee and heard Government Back-Bench Members say how much they disapproved of tax avoidance, but throughout this episode we have heard people argue that because some people have taken steps to avoid tax, we should reduce it. That is highly unsatisfactory to the many people who, on pay-as-you-earn, have little ability to avoid tax. They are gobsmacked by all this.

If part of the problem was due to people forestalling, which is the technical term, in the first year of the new tax, perhaps—and this is a thought for the future too—we should have introduced it with immediate effect, as happens with some other taxes. For example, tobacco duty is generally increased on the day of a Budget, so that people do not rush out to fill their shopping bags—or whatever they do. Perhaps that would have been a way around it. I know it is not traditionally done with increases in tax rates, but if that is how people respond to these things, perhaps we should treat higher earners like we treat people we think will fill their bags with cheap booze or cigarettes, and forestall them, rather than letting them forestall the rest of us—because that is what they are doing to the communities in which they live. Unfortunately, in a year’s time, we are likely to hear Government Members saying “We told you so” even more. The reduction has been postponed for a year, but it will still happen, and a lot of people will no doubt do the same thing in reverse when it does.

It has become something of a mantra to say that no money was ever raised from the 50p rate of tax, but that is not true: £1 billion was raised, even in the year in which people were apparently forestalling. If we had let it run for somewhat longer, the situation could have been even more different. However, as the Institute for Fiscal Studies pointed out, to rush to judgment on this matter so quickly, because that suited the way in which the Government wanted to go, was not justified. We are, in effect, saying to people that it is all right to avoid tax.

I started to tell a little story earlier, and I hope that it will be seen to be relevant. I am fascinated by history, and particularly by housing, and—unusually, for me—I watched a television programme last night. It was entitled “The Secret History of Our Streets”, and last night’s episode was about Portland road, in London. It had been made long before the current debate on the Budget. A young, brash banker got up and said that the value of the property on that street had gone up even further since the taxpayers had bailed out the banks. Did we really think, he asked, that the banks were going to start lending to small businesses? No, they were going to give people like him an increase in income so that they could pay even more for those houses. He might have been one of those boastful types, but that was nevertheless an insight into the mindset of the kind of people in our community who think that tax avoidance is absolutely legitimate. There is a great deal of wealth in this country, as that example showed, and many ordinary people find this whole debate offensive and difficult to swallow.

At the other end of the tax issue, we have the question of raising the tax-free allowances. The Government keep saying how kind they are being to people on low incomes, but we should remember that once those people have had their tax allowance raised, they will get no further advantage in subsequent years because they are already out of the income tax regime. Other people, however, have gained considerable advantages from the raising of the basic tax threshold. Many people on considerably higher earnings—although not necessarily paying higher rates of tax—have gained from the measure.

It has been easy—for the Liberal Democrats in particular, as this is one of their favourite lines—to say that raising the tax threshold is all about helping the very poorest. However, the very poorest were already outside the income tax regime, and people on considerably higher earnings—particularly two-earner families without children—have benefited substantially from the raising of the threshold. We must also take into account what people on the margins who have been taken out of tax have lost. When we look at the details, we see that as a result of the measure, they could lose tax credits and, in some cases, housing benefit. Their gain is therefore very much less than has been suggested.

Fixed-term Parliaments Bill

Debate between Thomas Docherty and Sheila Gilmore

Wednesday 24th November 2010 Commons Chamber

[Sheila Gilmore]

Members of the Committee were dissatisfied with various Government responses, including that one. It was partly because of the lack of clarity in this area that we came up with a number of amendments, including some of those being debated.

This is a simple matter. Let me bring it back to where the public are coming from and what they would want us to do. I think they would want us to produce something out of the Bill, even though it is not an ideal way of going about constitutional reform, that is simple, clear and understandable, and we should proceed on that basis.

[Thomas Docherty]

I regret that I have been unable to be here as much today as on other days, but hon. Members will appreciate that I had Select Committee business. I have been fascinated to see so many Liberal Democrats here. Perhaps the Minister will reflect on why a record number of Lib Dems have turned up to hear how to bring about the collapse of a Government now or in future. I am sure he will feed all this back to the Deputy Prime Minister when he next sees him.

I shall try to stick to the issue at hand, Mr Amess. I strongly welcome the work of the Political and Constitutional Reform Committee and it is a matter of some regret on both sides of the House that the Deputy Prime Minister did not take the time for any other pre-legislative scrutiny. Opposition Members and several Government Members have tried to strengthen the Bill. Of course, we are not opposed to the principle of fixed-term Parliaments, although we would prefer a term of four years to five. Our aim is to try to make sure that we have clarity, so it is disappointing that we have not yet heard from the Minister any of the necessary clarity about what would constitute a vote of no confidence.

Obviously, as a new Member, I do not have the same experience and length of service as many Members on both sides of the House, but having recently read Mr Alistair Campbell’s “Diaries”—an excellent read—I was struck by the account of an occasion when the previous Conservative Government threatened to use a no confidence motion to stay in office. I am sure the hon. Member for Stone (Mr Cash) and others can confirm that. You, too, Mr Amess, may recall those days.

It seems to me a slightly grubby, if not shabby, state of affairs for a Prime Minister of whatever hue to try to drive through legislation by using such a threat.

Fixed-term Parliaments Bill

Debate between Thomas Docherty and Sheila Gilmore

Tuesday 16th November 2010 Commons Chamber

[Thomas Docherty]

For the benefit of those Lib Dems who are only arriving now, so very late to the debate, may I ask my hon. Friend whether she agrees with the following point made tonight by the leader of Plaid Cymru and others—that confusion will be caused by having two elections on the same day, especially as they will be preceded by TV debates with on one night the party leader for the UK saying that his party will pursue one policy and the following night the party leader in Wales or Scotland saying something else?

[Sheila Gilmore]

I absolutely agree. The problem is not to do with people taking different positions; it is to do with what will happen in the month or few weeks before an election when the issues are being debated on the hustings and being reported in the newspapers. I have an awful vision of us running two sets of hustings and trying to get people to come out to slightly chilly church halls to listen to completely different debates on different nights—although it is perfectly possible to get people to come out to such events when elections take place at different times. Why make this happen when we do not have to?

--- Later in debate ---

[Sheila Gilmore]

I agree with my right hon. Friend. Yet again, that is another aspect of a situation that we are creating. Apparently—the hon. Member for Epping Forest (Mrs Laing) let the cat out of the bag—this is being done not for any good and strong constitutional reason or because we can argue about the history of the past 200 years, but because it suits this coalition Government to have this Parliament last for five years. It suits them to have this provision wrapped up with the other parts of the Bill, which will be debated later, to try to ensure that the coalition holds together. This is being wrapped up as a constitutional Bill and it is being presented as something that will last into the future but, given our constitution, it is possible for a future Parliament to change that, so we are not entrenching things.

[Thomas Docherty]

My hon. Friend mentions the future. Has she, like me, worked out that if we have a second five-year term, we will run slap bang into the local government elections in Scotland, which we have put back by a year? We would then have an even worse situation than the one in 2007, with a general election and the local government elections leading to hundreds of thousands of spoiled ballot papers.

[Sheila Gilmore]

I thank my hon. Friend for that information, because it adds to the important case that we are presenting. The people who find this highly amusing clearly have not had the experience that we had. It is incumbent on a Government who said that they would want to look at the evidence and make decisions on the basis of hard facts to listen to the evidence being given by people who have been through this process and who understand the complexities of devolution in a situation where we still have a UK Government. We have had experience of this, as have the elected bodies, which have given their view very clearly to the UK Government but have been ignored. They were not consulted before this, but they gave their view and told of their experience, so it is not asking too much of any Government to say, “Perhaps we have not got this right.”

Perhaps the simplest thing for the Government to do is not to try to see whether they could slip the election by a month, as has been suggested by some people. That would represent the worst of all possible worlds for the voters, let alone for the political parties. The simplest thing would be to say, “We have got this wrong, but we believe in fixed-term Parliaments.” The Labour party proposed fixed-term Parliaments in its manifesto and the Liberals believe in them too. I am not sure whether the Conservatives believe in them, but they introduced this legislation so presumably they now do. We all seem to agree that there should be fixed-term Parliaments. On that basis, why are we having this debate? Because the coalition Government are so determined to stick to their first thought, which was to have five years.

The Government may be doing that only for advantage and to feel that they have the longest possible time in which to be the Government. I have to say to the hon. Member for Epping Forest that she and others on the Government Benches may feel that they have an entitlement to sit for five years, having been elected, but a lot of people in the country have a very different view. The majority party in the coalition did not get a majority for its policies. The junior partner in the coalition went to the people on a different set of policies, so the people who voted for the Liberals did not vote for the programme of this coalition Government. The Government’s approach seems particularly unfortunate for democracy in this country, given that the Government do not have a mandate to rule in the majoritarian fashion that they are doing.

Ship-to-Ship Oil as Cargo Transfer

Debate between Thomas Docherty and Sheila Gilmore

Tuesday 27th July 2010 Westminster Hall

[Sheila Gilmore (Edinburgh East) (Lab)]

The RSPB is one of the big campaigners on the issue. My area certainly experienced such campaigns when I was on the council, which was before 2007—that is how long we have been talking about the matter. The RSPB stated that it could not understand why the regulations could not go ahead. Was my hon. Friend aware of that?

[Thomas Docherty]

My hon. Friend has been a champion on the issue in Edinburgh for quite a while. She is right that the RSPB is unhappy. I think it is fair to say that it feels that its voice has not yet been heard in the debate. I hope that the Minister will be able to give us a guarantee today that, as part of his consultation over the next six months, he will find an opportunity to meet with the RSPB and me, as well as with my right hon. and hon. Friends, if he can find time in his diary, perhaps in September or October. The RSPB could then have an opportunity, in person, to make its case.

I am conscious that I have been pursuing this issue for some time.