(1 year, 5 months ago)
General CommitteesI will certainly answer the first of the points the hon. Gentleman made in his intervention—I was not able to catch them all, so I very much hope that he will be able to speak in due course. I will absolutely undertake to write to him if I am not able to deal with them in my speech.
I am told that about 5% of GB to NI parcel movements —please forgive the acronyms—are to Northern Ireland businesses. Within that 5%, the level of checks will be minimal, because we are applying this risk-based and intelligence-led approach to checks. We have not put a percentage on it, other than that it would be within that 5%, but we expect this to be minimal, because the very thing we want to encourage is trade between a thriving GB economy and a thriving Northern Irish economy.
In relation to the green lane and whether only a few businesses will be able to benefit, the answer is no. We expect the use of the green lane to be widespread. We are working to ensure that businesses in Northern Ireland and Great Britain know how to be eligible. Indeed, if there are any observations that the hon. Gentleman and others have as to the challenges that businesses face, or representations that they would like to make, will they please continue to work with us? We genuinely want to make this work for people and businesses—of course we do. As I said, I hope that the hon. Gentleman will be able to continue his speech in due course.
To return to my own speech, I was trying to set out the requirements on businesses and, importantly, the lack of requirements on individuals, families, friends and so on. Movements via the red lane, including those goods destined for the EU, will be subject to the customs processes required by the EU, as I hope colleagues will understand.The Prime Minister negotiated the Windsor framework to ensure that consumers and businesses in Northern Ireland—and, indeed, British businesses selling into Northern Ireland—could benefit by protecting internal trade within the UK.
I have a concern when it comes to the integrity of our United Kingdom, because the final sentence of paragraph 7.6 on page 3 of the explanatory memorandum states:
“This means that prior to this instrument coming into force, postal packets moving within the UK cannot be searched, seized or intercepted by HMRC or Border Force.”
This instrument will therefore change the internal integrity of our United Kingdom and is a huge giveaway of our country’s sovereignty.
I am really pleased that my hon. Friend has brought that up, because it touches on the timing point that colleagues have raised. Understandably, colleagues have asked, “Why is this happening now? Why can’t it wait until October next year?” Of course, the Windsor framework arrangements will come into force in October next year, but there is a limited range of prohibited or restricted goods that are supposed to comply with EU customs rules today—for example, hazardous chemicals and chemicals that can deplete the ozone, and blood diamonds have also been mentioned to me. We do not have those powers at the moment, so we need to fill the gap as quickly as we can, so that in respect of those goods—
(1 year, 7 months ago)
Commons ChamberI gently remind the hon. Gentleman of the conversation that happened at the Budget—I hope he recalls it—about the need to get doctors, consultants and those in the public sector back into the NHS. We heard from doctors themselves—the British Medical Association and others—that there were barriers in the pension tax rules which stopped them continuing to serve. I am delighted if those rules help more doctors to serve our NHS and help our constituents who are patients—helping doctors to continue to serve in that vital public service. The difference between Conservatives in government and Opposition Members is that we listen to people, and we deliver what we need to keep the economy going and help our NHS.
One of the best ways to ensure fairness in the tax system is to let people keep more of their hard-earned money. Last summer, the Prime Minister outlined a plan that would cut the basic rate of income tax to 15p in the pound by the end of the decade. Can the Minister let me know when that plan will be outlined in more detail?
I hope my hon. Friend has been listening to what the Chancellor said at spring Budget and in speeches since then about the need for fiscal responsibility. We have to be fiscally responsible; we have acknowledged that. We have had to make some very difficult decisions along the way, but we are clear that halving inflation, tackling our debt and growing the economy will enable us to make the sorts of tax cuts that he and I both want to see so much.
(2 years, 1 month ago)
Commons ChamberI will give way, but there is even more to come.
What is more—and his is an important point in relation to the very moving cases we have heard in the House today—the most vulnerable households will be able to secure help through the household support scheme, to which we have added a further £1 billion precisely to help those who are in trouble. I know that hon. Members from Northern Ireland are most concerned about people living off-grid. We have doubled the one-off payment that will be given to people living off the grid, and that payment will be given in the winter. Finally, if anyone is in any doubt as to the help they can give their constituents, they should please look at the “Help for Households” website, which sets this all out very clearly.
I am now going to race through some of the changes that we have had to make to taxes. We have tried to be fair and compassionate in these difficult times, meaning that those with the broadest shoulders bear the heaviest weights, and we have wanted to avoid tax rises that most damage growth. On personal taxes, we have reduced the threshold at which the 45p rate becomes payable from £150,000 to £125,140, which means that those earning £150,000 will pay just over £1,200 more in tax each year. We are maintaining the income tax personal allowance and thresholds, which is a difficult but necessary decision, but even after these freezes, we will still have the most generous set of tax-free allowances of any G7 country.
On business taxes, we are raising corporation tax to 25p precisely because, as has been said, we want the largest companies to bear their responsibility. Even at the increased rate of 25%, it will still be the lowest rate of corporation tax in the G7. We have frozen the employer national insurance contribution threshold until April 2028, but 40% of businesses will still pay no NICs at all. The VAT registration threshold will stay which, incidentally, is almost twice as high as EU and OECD averages.
Let me move on to business rates, and then I will come to my hon. Friend and the hon. Lady. We know how important business rates are for our high streets, pubs, shops, and local hospitality businesses. That is why with the revaluation that is needed, we have none the less got a package of nearly £14 billion-worth of help, so that nearly two thirds of properties will not pay a penny next year, and thousands of pubs, restaurants and small high-street shops will benefit.
The Minister is talking about taxation. I am seriously concerned that the Government have enabled council tax to go up by 5%. In Stoke-on-Trent a 1% rise brings in merely £900,000, which is the second lowest of any local authority in England, and it simply will not cover the black hole that inflation has brought. Will the Government look at areas such as Stoke-on-Trent and give additional help? If they do not, we will end up in the situation that Croydon Council has just announced: the third time it has gone bankrupt.
I thank my hon. Friend. For anyone who missed it, I think he just said that Croydon Council has gone bankrupt for a third time, which is worrying, given that it is, I think, a Labour council. He mentioned the council tax referendums, and we chose that course precisely because we want to address the very real issue of social care. We have ensured that we are balancing those pressures with grants from central Government, and I will come to that in a little more detail in a moment.
Labour’s answer to these difficult sets of international and domestic problems seems, as has been pointed out, to be non-doms. Labour says that scrapping non-doms will apparently earn £3 billion in savings. Well, here are some facts. Non-domiciled taxpayers were liable to pay £7.9 billion in UK income tax, capital gains tax, and national insurance contributions in the tax year ending 2021. Non-doms have invested more than £6 billion in the UK since 2012, using the business investment relief scheme. In other words, non-doms are paying rates of tax that far outstrip the savings that Labour would make, and it is a very one-dimensional answer to a difficult problem.