Oral Answers to Questions

Victoria Atkins Excerpts

Tuesday 15th November 2022 Commons Chamber

[The Financial Secretary to the Treasury (Victoria Atkins)]

I thank the hon. Lady for her question. The Government received about £143 billion in the last financial year from value added tax, which helps to pay for the services that we all care about, such as the national health service, so strict restrictions have been placed on the goods that can be exempted from VAT. I understand her concerns, however, and I would be happy to meet her to discuss what other forms of support we can provide. For example, we can commend Tesco, which has taken the decision not to charge VAT on its products.

[Greg Smith (Buckingham) (Con)]

The noble Lord Berkeley in the other place has estimated that scrapping HS2 would save the British taxpayer £147 billion—more pessimistic estimates have the saving at £100 billion. With a day of difficult decisions coming up on Thursday, surely scrapping HS2 is an easy one?

Public Sector Pay: Proposed Strike Action

Victoria Atkins Excerpts

Tuesday 1st November 2022 Westminster Hall

[The Financial Secretary to the Treasury (Victoria Atkins)]

It is a pleasure to serve under your chairmanship, Sir Edward. I congratulate the hon. Member for Cynon Valley (Beth Winter) on securing the debate. I will try to do her the courtesy of sitting down a couple of minutes before the end of the debate so that she can sum up.

I thank all Members for their contributions. I agree with every single contribution that has emphasised how important and valued our public sector workers, such as nurses, police officers, prison officers and teachers, are to our country. They are a source of great pride to us all, as the hon. Member for Rhondda (Chris Bryant) so eloquently said. I also agree that they deserve to be paid fairly, especially at a time when the cost of living has been rising. We understand the importance of recruiting and retaining the very best people in our public services, but we have to take care to ensure that we are responsible with the finite resource of taxpayers’ money—our money, which we and tens of millions of other people throughout the country pay—and consider the consequences of decisions that are taken in Whitehall.

In his statement in Downing Street, the Prime Minister was clear that economic stability and confidence are at the heart of this Government’s agenda. That is why he is so focused on tackling inflation. We have already heard about the difficult impact that inflation has had on day-to-day essentials, such as the cost of food, heating our homes and getting to and from school and work. They have all become more expensive, which means our wages and our salaries do not go as far as they used to. Sadly, wage inflation, particularly in the tight labour market that we have here in the United Kingdom—by the way, we should be proud that we have such a high employment rate—adds to the cycle of rising prices. That is the conundrum that we face.

On help with the cost of living, I must emphasise, not least because our constituents are listening, that a great deal of help has already been announced, including the energy price guarantee and the energy bill relief scheme. Our most vulnerable households will receive £1,200 of support this year through those measures, the council tax rebate and a one-off payment of £650 in cash for those on means-tested benefits. There are also other measures, but I am conscious of the time and I want to get to the meat of the topic.

[Chris Bryant]

Does the Minister agree that one of the most shameful things we have seen over the last few years is nurses going to food banks run by their own hospitals because their pay is not enough for them to survive?

[Victoria Atkins]

In his speech, the hon. Gentleman spoke about the rising cost of food. The pressures of international events, such as the war in Ukraine and its impact on grain supplies, which we know about from the coverage on our televisions, and on pesticides and agricultural tools, including those that farmers in my constituency need to help to feed our country, all play a part in that. The help we have provided, including the measures regarding wages, which I hope to get to in a moment, is vital and we need to keep the situation under constant review.

The hon. Member for Cynon Valley raised many questions about tax. I reassure her that the top 5% of earners are projected to pay half of all income tax in the next financial year. Income tax provides the largest form of income that the Government have. The top 1% of earners are projected to pay more than 28% of that amount, which is right because those with the broadest shoulders should bear the most.

[David Linden]

rose—

--- Later in debate ---

[Victoria Atkins]

I will make a little progress, if I may.

Pay settlements need to be affordable for our economy and avoid driving the wage-price spiral I have referred to. We know that parts of the private sector are unable to match current rates of consumer price inflation, so there would be an impact if we went down that route with the public sector. We have to protect the economy over the long term by not leaving the next generation—our children and grandchildren—with spiralling debt. We are a country that funds our promises and pays our debt.

[David Linden]

rose—

[Victoria Atkins]

I am going to make some progress. I will allow the hon. Gentleman to intervene in a moment.

Members will know that there are different processes for different parts of the public sector. Indeed, the devolved Administrations play a vital role in relation to some of the critical professions that we have just spoken about. In Wales, decisions on pay for teachers, doctors, nurses and other NHS staff are made by the Welsh Government, so I trust that the hon. Member for Cynon Valley will have discussions with the Welsh Administration in relation to those sectors.

In Scotland, decisions on teachers, police, prison officers, local government workers and workers for the devolved Administration are not made by the UK Government. Although health is devolved to Scotland, doctors, dentists and NHS “Agenda for Change” staff are nonetheless covered by the pay review bodies that report in England, which I will deal with in a moment.

[David Linden]

Will the Minister give way?

[Victoria Atkins]

I will do briefly, because I have three minutes left.

[David Linden]

The Minister is talking about those with the broadest shoulders bearing the weight of this financial crisis; will she encourage His Majesty the King to pay inheritance tax on his earnings from the Duchy of Lancaster?

[Victoria Atkins]

We keep all taxes under review. The hon. Gentleman will know that there is a statement coming in two weeks’ time. I am not going to comment on any decisions in relation to taxes, as it would be improper to do so, but I hope that he and the hon. Member for Glasgow South West (Chris Stephens) will speak to their SNP counterparts in their own Administration to ensure that they do as they have encouraged in this debate in relation to matters that are devolved.

[Chris Stephens]

rose—

[Victoria Atkins]

I am going to move on to the independent pay review bodies, because they play a really important role for some sectors and the pay that they receive.

Pay for many local government workers is agreed between the Local Government Association and trade unions, without direct involvement from the Treasury. Departments determine pay awards for many civil servants within the parameters set by the Government, but pay for most frontline public sector workforces, including nurses, teachers, police officers and armed forces, is set through the relevant independent pay review body. It will take evidence from the Government but also, importantly, from trade unions and wider independent research.

When I was prisons Minister, I had a gruelling session in which I was cross-examined by the prisons pay review body. I was delighted to accept the overwhelming majority of its recommendations when they came forth, with the only exception being the recommendation about the most senior prison officers, working on the principle that those with the broadest shoulders will be able to play their part in this endeavour.

On the point made by the hon. Member for Easington (Grahame Morris), working conditions for the public sector must focus on pay but also, importantly, on how people feel treated and how they feel in their workplace. That was something I tried to engender as prisons Minister, and I hope we will be able to build a real narrative about how our people are valued.

I am conscious of the time, so I shall address one or two of the pay increases that the independent pay review bodies have been able to deal with. Nurses at all NHS pay bands will receive at least a £1,400 increase, and all teachers will receive a minimum 5% increase to their pay, which will help early-career teachers to reach the Government’s commitment on starting salaries of £30,000. There are many other statistics that I could mention.

My final point is that we are disappointed that some public sector unions are considering strike action over pay. We want unions to engage not just with the Government, but with the pay review bodies and the devolved Administrations, in the processes that will run this year. We all know about—indeed, Members have been good enough to talk about it—the impact that strikes have on hard-working families, but I very much hope that we all understand just how vital these workers are. I will finish there to give the hon. Member for Cynon Valley time to sum up.

Ways and Means

Victoria Atkins Excerpts

Ways and Means resolution: House of Commons
Wednesday 6th September 2017 Commons Chamber

[Peter Dowd]

My hon. Friend is absolutely right. The proposals for reorganisation will do nothing to help that—they are in a chaotic state.

[Victoria Atkins (Louth and Horncastle) (Con)]

I urge caution on the hon. Gentleman before he throws around wild accusations about the Government supporting tax dodgers. For what it is worth, in my previous life I used to prosecute massive tax fraudsters. I am very happy with the fact that I have helped fraud prosecutors to put a lot of nasty people into prison, so I take great offence at the hon. Gentleman’s attempt to cast all Conservative MPs in that way. The best way to deal with tax evasion and tax dodging is not to throw empty words across the Chamber but to work with the Government to reduce and stop something that we all want to see the end of: tax dodgers not paying their dues.

[Peter Dowd]

I hope the hon. Lady will be busier in her job.

I find it baffling that, at a time when the Government are introducing some of the most complex plans to make tax digital, and while there is so much uncertainty about how taxation and customs will work post-Brexit, they are choosing to fire HMRC staff rather than hire them. To put it simply, were the Government truly serious about wanting to close the tax gap, which costs the UK taxpayer a minimum of £36 billion every year, they would give it the resources it so desperately needs. Given the thousands of accountants and lawyers across the world whose sole occupation is to advise and enable tax avoidance, it will never be a fair fight.

The sieve-like measures on non-doms which I have mentioned are perforated even further by the plan to loosen the rules on business investment relief. That measure will allow non-doms to remit funds into the UK without paying the usual taxes. There is little evidence that such relief has been effective in encouraging greater investment in business, so expanding it is only a giveaway to non-doms. If any of us wish to invest, we have to pay the appropriate taxes. There should not be different rules for a privileged few, which maintains the Government’s view that the UK can only ever be attractive as a tax haven. The Government’s race to the bottom begins in earnest and enthusiastically.

Economy and Jobs

Victoria Atkins Excerpts

Thursday 29th June 2017 Commons Chamber

[Kirsty Blackman]

Absolutely. I think we will see increasing problems with that, and I shall come on to that later.

During the election campaign, the UK Government seemed unclear about the causes of poverty, so let me enlighten them: poverty is caused by people not having enough money.

[Victoria Atkins (Louth and Horncastle) (Con)]

If the hon. Lady is against consumer debt, which we all agree we are worried about, why is she so comfortable with public sector debt?

[Kirsty Blackman]

They are totally different things, and I am surprised that I have even been asked that question. The level of consumer debt is a massive problem for the economy, because people are going to be hit when this bubble bursts—that is what we saw happen in 2008.

Finance (No. 2) Bill

Victoria Atkins Excerpts

2nd reading: House of Commons
Tuesday 18th April 2017 Commons Chamber

[Peter Dowd]

I referred earlier to the money—£70 billion, I believe—that the Government have given away to corporations. That would be a start, and I would welcome the hon. Gentleman’s support for my proposal in the next Parliament.

We have seen £4.6 billion cut from the budget for social care, which is linked to, and on a continuum with, the NHS. The Chancellor has pledged to return only £2 billion over the next three years—£1 billion for the year 2017-18 and £500 million a year for the two following years—which is half what the King’s Fund has estimated that the social care sector needs not for next year, but today. That is another Conservative broken promise. Missed targets are pushing the NHS and social care into further crisis. The Government are behaving like an ostrich in that regard, and the situation is coming back to bite them.

I turn to small and medium-sized businesses, which contribute more to the British economy than they have ever done. SMEs are forecast to contribute £217 billion to the UK economy by 2020, but the Finance Bill does little to address the concerns of many business owners. The business rate system continues to be rigged in favour of giveaways for big corporations at the expense of SMEs. How can it be right for the business rates bills of a leading supermarket’s biggest stores to fall by £105 million, while independent shopkeepers struggle with a cliff-edge hike in their rates? That is a fact today. The system needs to be fairer and weighted more in favour of SMEs, which is why a Labour Government would bring in a package of reforms to ease the burden of business rates. Rising business rates and rising inflation are creating a perfect storm for SMEs. Small business inflation has risen to its highest point in eight years, with basic costs soaring by 3.2% last year. SMEs’ costs are predicted to go up by £6.8 billion by the end of this year. All that is happening while the Conservatives continue to look the other way in complete denial.

[Victoria Atkins (Louth and Horncastle) (Con)]

In that spirit, does the hon. Gentleman welcome the additional £20 million to £25 million a year to support some businesses that will no longer receive small business rate relief after the revaluation?

[Peter Dowd]

Of course I welcome that figure, but the hon. Lady has to ask herself whether businesses should have been put in that position in the first place. That is the fact of the matter. It is too little, too late. I accept the £20 million figure, which is fine. Small businesses need all the support that they can get, because we are talking about people’s jobs and about businesses that people have worked hard to grow and nurture, and there is a danger that they will go out of business as a result of Government policies.

--- Later in debate ---

[Victoria Atkins]

Does the hon. Lady accept, in the spirit of this part of her speech, that the introduction of the national living wage and its increase this very month to £7.50 help exactly the people whom she is talking about, and that raising the threshold at which we start to pay income tax must help as well?

[Kirsty Blackman]

I absolutely agree that things such as the national living wage—it is not a living wage, however; it is an increase in the minimum wage, and no calculation is done as to whether people can live on it—and the increase in the personal allowance have been positive for people at the bottom of the pile, in particular. However, the reduction in tax credits more than balances things out in many cases. People are losing more as a result of the changes to tax credits, for example, than they are gaining from the changes to the personal allowance and the minimum wage. I absolutely agree that those things are positive, but people are still feeling that their household budgets are squeezed by the cost of food going up in recent weeks, for example, which is set to increase, particularly for imported food.

A few people have mentioned intergenerational fairness, which is a real issue for me that I have spoken about a lot, and there has been a lot of stuff in the news this week about millennials. I am one of the 39 millennial MPs—I am 31 this year and was born in 1986—and many of my peers are worse off than their parents’ generation was in terms of the wages that they can expect to receive at a younger age and their access to property, whether through property ownership or through rents as a proportion of their income. This is purely anecdotal, but many people at my age are thinking about putting off having children because they cannot afford a secure home. For a Government looking forward to a future tax take, that is a real issue for a few years down the line. Many people have spoken about that, although we do not yet have the statistics for how the numbers will look.

The hon. Member for North West Hampshire (Kit Malthouse) talked about the gig economy, and I get that the Government need to find a different way to tax it due to the avoidance of normal tax routes. However, we need to find a different way to ensure that young people who find themselves working in the gig economy have a measure of stability in their lives and can continue to be able to pay money that they owe, such as rent, in order to finance what is a reasonable lifestyle, rather than a particularly comfortable one.

On austerity, I have mentioned the changes that the Government have made for those at the very bottom of the pile who need to claim benefits—not just out-of-work benefits, but tax credits and so on, which encourage people into work. According to what we hear from those who come into our constituency offices, the Government’s changes to the Motability cars scheme have made it more difficult for people to access work, because their vehicle has been taken away, which has an impact on the Government’s tax take and will increase the amount of benefits that will need to be paid to some people.

Moving from the general context to some of the specific issues in the Finance Bill and the things on which we want the Government to be aware of our views, I will start off with the police and fire services. My hon. Friend the Member for Dundee East (Stewart Hosie) mentioned the VAT on police and fire services in Scotland. We have raised this matter on many occasions and will not stop raising it, because the Government do not have a principled position. They cannot say that they are treating Scotland fairly when they have allowed VAT exemptions for Highways England and the London Legacy Development Corporation, which is a UK-wide organisation. The Government cannot stand on the moral high ground, because they have allowed those exemptions. We ask again that the UK Government change the VAT treatment of the Scottish police and fire services. I imagine that they will say no, but we are asking again and will not stop asking until a UK Government of whatever colour change the VAT treatment.

We also want to raise the issue of Scotch whisky, as people may imagine. The above-inflation increase in Scotch whisky taxation is a real issue for our whisky producers. International trading is slightly more uncertain than it has previously been due to Brexit, so whisky trading with European markets could be less easy than in the past, and the same could be said for countries that the EU has free trade arrangements with. Whisky is a high-value product. It creates a huge number of jobs in Scotland. It generates taxation for the UK Government at levels that are not pennies. The UK Government need to think seriously about how they are treating Scotch whisky, and if this Bill goes its full course, we will table an amendment stating that we do not want this above-inflation increase in taxation.

My hon. Friends the Members for East Lothian and for Dundee East both mentioned insurance premium tax, so I will not rehash the arguments too much, but it is being levied largely on people who purchase insurance who are just trying to do the right thing by getting insurance. They are trying to create a safety net for themselves, and the Government should be applauding that, not taxing it. The problem is that the tax has increased dramatically even over the two years that I have been an MP. The Government need to think carefully about whether insurance is a sensible place to tax people when it forms part of a behaviour that we want to encourage.

Colleagues on both sides of the House have talked about their support for the soft drinks levy and positive changes relating to childhood obesity, mentioning the studies that have been done on whether it will make it a difference. The Health Committee suggested that it is important for milk-based drinks to be included and, having looked at the Government’s rationale, their statements on milk-based drinks and the Health Committee’s report, I do not see a good reason for them to be excluded—some milk-based drinks have the same proportion of sugar as their non-milk-based counterparts. If the Bill were to run its full course, we would table amendments suggesting that the loophole should be closed. We generally support the measure, but the loophole should not be left open. If we are creating such a tax in primary legislation, we should do it properly. There is no good reason for milk-based drinks to be excluded at the moment.

There has been a lack of consultation on Making Tax Digital and the changes to self-employment, and the UK Government have had to change their position on a number of things. They have had to slow down the roll-out of Making Tax Digital and change their position on national insurance for the self-employed. Partly because the consultation done in advance is not good enough, they do not properly understand the implications of what they are doing before they do it and, therefore, have to row back on it. Real change is needed.

Some Conservative Members have mentioned the proposed changes to things such as the taxation of self-employment. I get that the UK Government are trying to equalise self-employment and employment, but those in employment get the benefits of holiday pay, maternity leave, sick pay and all those things. If there is to be a massive change to the treatment of self-employment, it must be looked at in its entirety. The changes must be made within that context, rather than the tinkering around the edges that we get in Budgets with a general movement towards a general idea.

The Government should make no changes to this for the next few years while they do a comprehensive survey and work out what self-employment looks like now, in 2017-18. The kind of people who are self-employed certainly did not look the same 10 or 15 years ago—the number of women in self-employment is much higher than in previous years—and we need to make sure that the goalposts are not moved for them. The tinkering needs to stop. If the Government are to make changes, they should make them in one go after a proper consultation. They should make a reasonable change in one move.

Talking about a lack of consultation moves me on nicely to oil and gas. I was frustrated with the UK Government’s spring Budget because they announced exactly the same thing as they announced last year on the transfer of late-life assets. The Minister is shaking her head, but the transfer of late-life assets was announced in last year’s spring Budget. This year the Government have announced exactly the same thing about making it easier to transfer late-life assets, but now they will have a group of experts look at it. Why did they not do that last year? I am frustrated that this has not happened quickly enough. I would have liked it to happen more quickly, but I am pleased that the UK Government are doing it. We have been asking for it for a long time and it is a positive move, but they need to move a bit quicker.

We are seeing platforms move towards decommissioning as fields move towards the end of their useful life. Getting oil out of those fields will not be a priority for the big players, but if a new entrant were to come in and take on an asset, it would get as much oil or gas out of it as possible. We need to encourage such behaviour. If the UK Government do not do that, they will have less tax income in future, so it is key for everyone that it happens.

Let me move on to other matters relating to oil and gas—the UK Government will not be surprised to hear us calling for these because we have called for them before and we will keep doing so in the hope that they might actually happen. We want changes on exploration. Although the moves the Government have made on seismic surveys have been hugely positive and very much welcomed—we really appreciate them—we need to make it easier and more cost-effective for companies to explore. We need more exploration allowances. A huge amount of oil is still under the North sea, and the UK Government could receive a huge amount of revenue from the extraction of these minerals. They need to take action now to secure those future levels of taxation.

So there are a few things the UK Government can do. Exploration is really important, as are small pools. I have lost my notes on this, but I believe there is the equivalent of 3.4 billion barrels of oil in small pools in the North sea. There are more than 360 pools with less than 50 million barrels of oil where extraction is not yet taking place. Those pools are treated in the same way for tax purposes as all the other pools, but we could do some fairly simple things to make them much more economically viable. We could remove the supplementary charge on small pools, which would reduce the taxation level from 40% to 30%. That would make it much more likely that we get anything at all from some of those pools.

We could change the taxation level for those small pools so that it is equivalent to the level for onshore oil and gas extraction. The Government obviously think that that level is reasonable for onshore extraction, so it should also be reasonable for these areas where the technology is new. Extracting from a small pool is different from extracting from the bigger areas—those we have previously extracted from—and people are going to have to innovate to do this. The tax system needs to recognise that this is more difficult to do and that we are not talking about the bigger pumping that we saw previously. This is a different situation and the UK Government will not get any tax take from these pools if they do not do something about it.

I have two more things to say about oil and gas—Members would expect an Aberdeen MP to talk about oil and gas! Some Conservative Members were talking about private capital, and companies and businesses not having enough access to capital investment. We have been calling on the UK Government to be more positive about oil and gas supply chain companies so that they can get increased investment. There is a huge, positive future for oil and gas companies, particularly in the supply chain. The North sea is the gold standard for things related to supply chain extraction and the services that we provide; I am told that you cannot go to Houston without hearing an Aberdonian accent, because of the number people, as well as the skills and expertise, that we have exported. Even in these times of reduced revenues coming from the oil and gas that they are extracting, those companies still need to be innovating, in order to get the more difficult oil and gas out. They need capital financing to do that, and the UK Government need to do what they can to make sure that those companies are linked with the right people and that, for example, banks are not cancelling overdrafts at a moment’s notice. Those changes need to be made.

My hon. Friend the Member for Aberdeen South (Callum McCaig) and I recently had a meeting with the London Stock Exchange Group, when we invited it to Aberdeen to talk to companies about its ELITE programme, which trains companies in accessing capital financing. Although it was a hugely positive meeting, not enough of these companies knew about such schemes or where they could go to get finance. There is a real issue to address and the UK Government need to do what they can to be positive, particularly in relation to the oil and gas supply chain, so that we can secure that future in Aberdeen and the UK more widely.

On that note, the other thing the SNP were going to table an amendment on—we still will if we have the opportunity—was UK content. Decommissioning is coming through in a bigger way. It is not by any means the end of exploration and other things in the North sea, but we are going to see more decommissioning in the coming years. A huge number of people are concerned that not enough of the decommissioning tenders are going to UK companies. Currently, not enough of the tenders for other things relating to oil and gas are going to UK companies, either. We would like the UK Government to take action to see what they can do to ensure that, wherever they can be, companies are incentivised to use UK suppliers and UK content. That would be hugely positive for jobs, including high-value jobs, in the UK.

It is important that the UK Government think about oil and gas and keep it front and centre, because it certainly was not enough of a priority in the industrial strategy and the leaked documents on Brexit priorities. Given the amount of revenue the UK Treasury has received from the oil and gas industry and the amount of future revenue, we need to ensure that the industry is listened to and that as much as possible is done to make sure that the UK Government can take the maximum amount of taxation.

On tax collection and avoidance, a 2014 Credit Suisse report on the success of small countries mentioned the fact that for large countries corporate tax collection as a percentage of GDP is significantly smaller than for small countries. That is partly an issue of size, but this is a real problem that will continue to come through for the UK Government. Over the past couple of days we have seen news reports about Border Force officials being stretched as it is and not being able to take action on immigration. Well, Border Force staff also deal with some of the customs issues. If we do not have an appropriate customs service in place, we will not be able to ensure that we collect the right amount from whatever tariffs we have in place. That will be another tax loss for the UK Government, so wherever they need to upskill, they should upskill. Frontline staff will have to ensure that tax is collected in the new scenarios where currently we are not having to do nearly as much tax collection.

I appreciate the opportunity to speak in this debate. As I have said several times, we do not know what is going to happen with the rest of the Bill, but I think I have made as clear as I can the SNP’s position on the things that we consider to be most important.

[Victoria Atkins (Louth and Horncastle) (Con)]

So much has already been said in this debate that I am going to attempt to be short and, I hope, concise in my remarks. I am aided by the fact that a little time ago I got an A-level in economics, and I hope I will be able to explain my views on the Bill in language of which my economics teacher would be proud.

It is particularly appropriate that we are discussing the Finance Bill because, of course, the Prime Minister today made a momentous statement announcing the next general election. It is only right that we are talking about the economy and finances of this great country, because a strong economy is vital to achieve all that we care about. In my constituency, Louth and Horncastle, a strong economy means jobs and successful firms creating prosperity, and from that, taxes flow. Of course, taxes pay for everything that we care about, from the national health service to defence, in which I have a particular interest because RAF Coningsby is in my constituency. They also pay for schools, and I am sure that we all in this House are united in our wish to ensure that the young generation are educated properly and fully so that we can make a success of not only Brexit but the future. I was particularly pleased today to see the Prime Minister emphasising not only her plans for Europe but the future beyond Brexit.

But—there is always a but—we must still continue to get public spending under control. There is no magic money tree, no matter how often Opposition Members would like to pretend there is. We have, sadly, a debt of nearly £1.7 trillion, which equates to almost £62,000 for every household in the country. We are spending more money on debt interest than on defence and policing combined, which is why we must learn to live within our means.

I have to say that, having spent several hours in the Chamber listening to erudite colleagues, I was a little concerned when, in answer to how much money Labour planned to borrow after the next election, the shadow Chief Secretary to the Treasury said something along the lines of—I hope I am not misquoting him—“We will borrow less than the Conservatives.” I did not hear any detailed financial planning. I will look forward to that in the coming weeks.

One of the best ways to ensure that this country succeeds and is prosperous is to make it the best place in the world in which to do business. That is precisely why we are cutting corporation tax, which was 28% under Labour, to 20% today, falling to 17% in a couple of years’ time.

[Jonathan Reynolds]

There is no magic money tree.

[Victoria Atkins]

Indeed. I hesitate to rely on my A-level economics, but companies employ people who pay taxes, and companies themselves pay taxes—not just corporation tax, but VAT, payroll tax and business rates. This is all about giving businesses the best chance of succeeding.

[Jonathan Reynolds]

indicated assent.

[Victoria Atkins]

I am glad to see that the hon. Gentleman agrees with me.

One of the most important things about any tax system is not just that it should help to pay for the things that we care about, but that it should be fair. In my previous career, I prosecuted tax fraudsters for a living. I am delighted to say that the main offence that we used to prosecute such people was cheating the public revenue, because if they commit tax fraud, they are a cheat. I look forward to helping the Government not just in the Finance Bill, but in the Criminal Finances Bill, to ensure that tax fraudsters feel the full force of the law.

Looking beyond Brexit, the reason I welcome this Finance Bill is that it places a very great emphasis on helping working families with the cost of living. I intervened on the hon. Member for Aberdeen North (Kirsty Blackman) to say that we have raised the national living wage in April to £7.50, which means an income boost of more than £500 for a full-time worker this year. The personal allowance will rise for the seventh year in a row, benefiting 29 million people, which means that a basic rate taxpayer will pay a full £1,000 less in income tax than they did in 2010 under Labour.

I also welcome this Bill for the help that it gives local authorities for adult social services—I am talking about an additional £2 billion of funding over the next three years—and the extra £100 million it provides in 2017-18 for capital investment for accident and emergency departments in England. I also welcome the £320 million to extend the free schools programme. The fact that the Prime Minister has called an election today shows that the Conservatives are the true Government of the United Kingdom. I know that the Scottish National party will welcome the fact that, under this Bill, Scotland will get more money, as will the Welsh Government and the Northern Ireland Executive. I welcome this Bill and I look forward to the campaign on the principles therein.

Oral Answers to Questions

Victoria Atkins Excerpts

Tuesday 17th January 2017 Commons Chamber

[Mr Hammond]

Those are two of the criteria that we have set: there should be value for money for the taxpayer; and the bank’s focus for future operations should be retained and protected. We are reviewing the sale process as it goes forward, and we will make sure that those outcomes are protected.

[Victoria Atkins (Louth and Horncastle) (Con)]

T2. The latest fiscal sustainability report was published by the Office for Budget Responsibility just over an hour ago. Knowing what a quick reader my right hon. Friend is, what assessment has he made of the implications for the long-term health of the public finances?

[Mr Hammond]

I am not only a quick reader, but able to read the report while also answering questions in the House.

The OBR’s report shows that, under certain circumstances, the UK public finances will come under increasing pressure over the next 50 years. As I said earlier, this creates a catalyst for a discussion, which we need to have, about how we maintain the sustainability of our crucial public services, given the pressures, including demographic pressures, that they will face. I believe that the report serves a useful purpose. Given that the point 50 years out is sufficiently far away, I hope that we will be able to have a mature, cross-party discussion about how we address these issues in the long term.

Equitable Life

Victoria Atkins Excerpts

Thursday 11th February 2016 Commons Chamber

[Antoinette Sandbach (Eddisbury) (Con)]

I pay tribute to my predecessor, Stephen O’Brien, who fought tirelessly on behalf of Equitable Life policyholders in my constituency. I am grateful to my hon. Friend the Member for Harrow East (Bob Blackman) for securing this debate.

The Minister may be surprised to know that some of my constituents who have received support from the compensation scheme have recognised the role of the coalition Government and want me to pass on their thanks to that Government for setting up the compensation scheme that has allowed them to salvage a little from the shipwreck that Equitable Life has in effect been. They fully recognise the good intentions of the last coalition Government in attempting to do something, when nothing had been done previously. I want to put that on the record.

[Victoria Atkins (Louth and Horncastle) (Con)]

Does my hon. Friend agree that the dignified yet forceful way in which EMAG has conducted itself—Mr David Wakerley in my constituency has been involved—shows the realistic view it has taken of what has been done so far, but this in no way addresses the needs of those left behind?

[Antoinette Sandbach]

I entirely agree with my hon. Friend. A constituent of mine who wrote to me has lost 75% of his life savings. He is living on a pittance by contrast with the position he would have been in if Equitable Life had not gone under. There is a broad recognition among Equitable Life policyholders of the stresses and strains that the last coalition Government faced, particularly with a severe economic crisis and a ballooning deficit.

Of course, we are now seeing the impact of the long-term economic plan. When the Government were in difficulties and faced stark choices, I believe that my constituents recognised that and were grateful that the Government were willing to act. Now they can see that circumstances are changing, they are asking the Minister to keep this matter under review, as my hon. Friend the Member for Romsey and Southampton North (Caroline Nokes) suggested. We are in a different economic situation from that when this fund was originally set up.

Spending Review and Autumn Statement

Victoria Atkins Excerpts

Wednesday 25th November 2015 Commons Chamber

[Mr Osborne]

Our national health service is publicly run, free at the point of use and now well funded under this Conservative Government.

[Victoria Atkins (Louth and Horncastle) (Con)]

May I thank my right hon. Friend for his commitment to fairer funding for schools so that the children in my constituency can get a fairer deal? On the subject of education, will he join me in thanking the shadow Chancellor for sharing his favourite book with us and therefore designing my next campaign leaflet?

[Mr Osborne]

My hon. Friend is absolutely right to champion the schools in her Lincolnshire constituency and to draw attention to the fact that the funding formula has not been fair to her constituents. That is why we are getting rid of it and introducing a new national funding formula, which will help to make sure there is a fair deal for Lincolnshire schools.

Having had a chance to look at it, I have discovered that this is a pretty well-thumbed copy of the little red book, so I do not think this is the first time that the shadow Chancellor has read from it.

Oral Answers to Questions

Victoria Atkins Excerpts

Tuesday 27th October 2015 Commons Chamber

[Mr Osborne]

As ever, when pressed, all that SNP Members want to talk about is party political gains, rather than sorting out the mess that this country was in six or seven years ago. As a result of the changes we have made, there are hundreds of thousands more people in Scotland with jobs, businesses are investing in Scotland, as they are across the United Kingdom, and we will go on making those changes. The hon. Gentleman can go on praying in aid a House of Lords that he has spent his whole life campaigning to abolish. I will go on delivering the reforms to our economy that are needed to help Scotland to continue to grow.

[Victoria Atkins (Louth and Horncastle) (Con)]

At the end of the previous Labour Government, nine out of 10 families with children were eligible for tax credits, some of whom earned up to £60,000. In other words, they were paying their taxes and then getting some back. Is it not better to reduce taxes in the first place so that people keep more of their hard-earned income?

[Mr Osborne]

My hon. Friend speaks for her Lincolnshire constituents and for the whole United Kingdom in saying that we want to move to a lower tax, lower welfare, higher wage society. We took such a step in the Budget by increasing the personal allowance to £11,000. We also cut taxes for business, reducing corporation tax and expanding the employment allowance so that smaller businesses could take on more people. It is all about continuing to deliver the record levels of employment we see in our country, and indeed the growing economy that today’s GDP figures confirm.

Welfare Reform and Work Bill

Victoria Atkins Excerpts

Tuesday 27th October 2015 Commons Chamber

[Natalie McGarry]

I thank the hon. Gentleman for that point. These are real-term cuts and many people have disappeared from the system because of its complexity and because of their fear of it.

With every Bill in this Session, we have a chance to act in concert, to set out the direction of our country and to make it clear what and who is important. I look to all Members, on both sides of the Chamber, to look to themselves and to their consciences and not just to their Whips. I implore Members from all parts of the House to put themselves in the position of the half million people who will be affected by these cuts—I am talking about those with mental ill health, learning disabilities, autism, Asperger’s and all the families involved—and vote in solidarity with them. They are real people, so Members should vote for amendment 56.

[Victoria Atkins (Louth and Horncastle) (Con)]

I wish to speak to new clause 7, amendments 35 to 48 and new clause 6.

I had the very great privilege of sitting on the Committee for this Bill and I have heard arguments from all parts of the House. There is one point in relation to new clause 7 that we looked at in Committee and that I wish to develop further today, and that is the principle of making work pay. The benefit cap has been criticised by some Opposition Members, but the reality is that, in my constituency, it is a very popular policy. The median salary in my constituency is £480 per week, which is less than the cap currently in place for benefits of £26,000. The point has already been made, and indeed we looked at it in the Bill Committee, that that £26,000 figure is equivalent to a gross figure of £35,000.

[Emily Thornberry]

Will the hon. Lady give way?

[Victoria Atkins]

In a moment if I may. Let me just finish this point. This effort to make work pay is to be welcomed and not criticised.

[Emily Thornberry]

I pointed this out to the hon. Lady in Committee, but I am grateful to have the opportunity to point it out to her again. If someone had a median income in central London, they would be on benefits, because it is accepted that people cannot live on £26,000 in central London and pay their rent.

[Victoria Atkins]

As I responded in Committee, I understand that the hon. Lady represents a London constituency, but I do not. I can only speak for what I think is right for my constituency and the area outside London.

We are talking here about a package of measures. I know that Opposition Members do not like to draw together all of its different threads, but this is a package. The ripple effect of the national living wage includes commitments—

[Dr Philippa Whitford]

rose—

[Victoria Atkins]

No, I will not give way, because I wish to develop this point. The ripple effect of the national living wage includes commitments by at least two employers in Louth and Horncastle—I am talking here about Morrisons and Sainsbury’s, but there may be many more that have not yet declared their intentions—to raise their lowest wages to more than the first stage of the national living wage, which will take effect in April.

[Helen Goodman]

rose—

[Victoria Atkins]

I will not give way, thank you.

The point is that the policy is part of a package, and the principle behind it is to make work pay. The criticisms that we are hearing from Opposition Members highlight how different our approaches are. We want to create a culture of employment. We believe in work and in all of the benefits that work brings to people.

Our responsibility as a Government is to make work pay, but we cannot do that if the system means that some people are better off out of work than in work. That does not make economic sense. We know that, since the cap was introduced, at least 16,000 capped households have moved into work. That is a good thing for those households. We know that those people who are now working are spending their money in the local economy. A strong local economy pays for the things that we care about—hospitals, teachers, the armed services and so on.

As we saw on the Bill Committee, what counts is not just the pay packet, but what it brings to people’s lives in terms of life chances, the positive benefits that it has for children in a working household and the examples it sets for those children. Those are all factors that are part of this package that some Members seem keen to avoid.

We know that households subject to the current cap are 41% more likely to get into work than uncapped households. I join my hon. Friend the Member for Weaver Vale (Graham Evans) in congratulating the Government on making the commitment that the money saved through this measure will be used to help fund more apprenticeships. It is about getting people into work and into training. We should celebrate, not criticise, the fact that unemployment and the number of out-of-work claimants is at its lowest level since 2010. The fact that we have these very low claimant rates, these measures and this determination to make work pay is something to be supported and not chipped away at.

--- Later in debate ---

[Mr Speaker]

Order. Before the hon. Lady continues with her speech, I want to notify the House that I would like to secure a contribution from the hon. Member for Bootle (Peter Dowd), which will be brief, as I must leave time for the Minister. I therefore feel confident in expressing the hope that the hon. Lady is approaching her impressive peroration.

[Victoria Atkins]

I am grateful, Mr Speaker. This is a very quick point.

The concept of job quality is beguiling, but how on earth do we define it? I am conscious that I may be about to upset the hon. Member for Bishop Auckland (Helen Goodman). I am going to describe a real-life job. Someone in their early 20s worked six days a week, or seven on occasion, without a break and far beyond nine-to-five, earning so little that she did not pay income tax in her first year, with no pension, no sickness pay and no holiday pay. Some Members might think that the quality of that job was very poor, but the opinion of the person who had it was that it was a great stepping stone into a very fulfilling career. I can say that because it was my first job. The hon. Member for Bishop Auckland laughs. I do not for a moment recommend it as a first job; we must all find our own courses in life. Nevertheless, how on earth do we define the quality of a job? I fear that this new clause would be a lawyers’ paradise—and I know whereof I speak.

[Peter Dowd]

It is often my lot to be well down the batting order, although I prefer bowling.

Until last night, when they were fortunately brought down to earth by the other House, the Government were pushing on with their tax credit proposals. They are still pushing on with them, despite the fact that the Chancellor is, he tells us, in listening mode, and the fact that there is no palpable or sustainable action to move to a higher-wage economy. They are tinkering at the edges. This proposal affects working mums; as I said earlier, 70% of the burden is falling on them. It affects low-income families. It damages work incentives, despite what the hon. Member for Louth and Horncastle (Victoria Atkins) said. It affects the working poor. It will have a dire effect on those with chronic illnesses, particularly with mental health problems.

The question we have to ask is whether this proposal will make work pay and help people back into work. Many say no. Some have suggested alternatives for where the extra funding can be found. I am not saying whether I agree or disagree with them, but it gives the lie to the claim that there are no alternatives. Despite issues of phased implementation, inheritance tax, relocation of planned spending on the personal allowance, marriage allowance changes, help with childcare costs, working tax credit and universal credit, there is still no guarantee of higher wages.

The provisions on ESA and the WRAG were introduced specifically to assist with support for disabled people who were assessed as not being fit for work according to the Government’s own assessment regime. Some people, such as those with chronic mental health problems, find it difficult to work. The Work programme has supported only 9% of participants on ESA with mental and behavioural disorders into sustained employment. We have parity of esteem, but not for those on welfare. Support for those people has to be tailored to their needs. There can be a slow journey back to health. People need advisers with particular skills and they are not getting them, so how do they possibly get back into work?

As for the sanctions regime, a Church group in Scotland identified that 100,000 young people were affected by sanctions, that they were being debilitated by them and that the sanctions undermined their humanity. Yes, sanctions have existed since 1913, but they have to be humane and those under discussion are not.