Non-domicile Tax Status

Debate between Victoria Atkins and Matt Western

Tuesday 31st January 2023 Commons Chamber

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

If the House will allow me, I would like to take a moment to mark the 70th anniversary of the east coast tidal surge, which saw 307 lives lost in England, including 43 people in Lincolnshire. Sutton-on-Sea in my constituency was one of the worst affected areas, and this morning constituents and Lincolnshire residents came together on the coastline to mark this terrible day in our nation’s history. Sadly, I could not be with them, but I want to place on record that my thoughts are with them on this difficult anniversary.

The Government have five priorities, as set out by the Prime Minister. First, we will halve inflation to give respite to business and reprieve to families living under the pressure of rising prices. Secondly, we will grow the economy to create better paid jobs and opportunities across the country. Thirdly, we will ensure that our national debt is falling, so that we can secure the future of public services. Fourthly, we will cut NHS waiting lists, so that people can get the care they need more quickly. Fifthly, we will pass new laws to stop small boats. To reflect the people’s priorities, three of our priorities are economic. They are a plan for a bright future where our economy is growing faster and where people across the country have opportunities for good jobs and for their pay to go further.

The autumn statement laid out our plan to achieve that future and, despite the difficult fiscal decisions we had to make, re-emphasised our support for the most vulnerable. Having helped households throughout the pandemic, we have set up new schemes to help people and businesses with rising energy bills, and we have taken targeted action on the cost of living. We have raised pensions, benefits and the national living wage to help those who might otherwise have been left behind. Those who ask where the burden falls in paying for that support should look at the measures in the autumn statement, which, as a whole, show that we have asked wealthier people to pay more. We have asked those with the broadest shoulders to carry the heaviest burden.

Today is not only the deadline for self-assessments, but, interestingly, the third anniversary of the Conservatives keeping our promise to the British people by honouring the result of the referendum and leaving the European Union. It is therefore ironic that Labour has chosen to table this type of motion today, because it was a parliamentary device that the Leader of the Opposition fell on when he was the shadow Brexit Minister and self-identified as a Corbynite. Labour used this sort of motion to try to block Brexit, but it did not work then and it will not work now to stop the Government’s responsible handling of the economy.

The flaws in the motion are fundamental, because long-standing and crucial conventions exist that Ministers should be able to receive free and frank advice from officials. In developing policy, Ministers must have a safe space to be advised by officials. That process should not play out in public, especially given that Treasury Ministers are often dealing with issues that are highly market sensitive. Those conventions apply to Governments of all political colours. If we were to make changes to any aspect of the tax system, the right and proper place to publish related costings and assessments is at the relevant fiscal event.

Having dealt with the motion’s flawed framework, I will say that we understand the legitimate concerns of people across the country. The country has a strong instinct for fairness, and we want all people to pay their fair share of tax. As the Minister responsible for the tax system, I feel that keenly, because I know that many people across the country are under pressure at the same time as we need to fund our public services properly.

[Matt Western]

At its heart, the motion is about laying before the House the evidence and analysis undertaken by the Treasury. On the point about fairness, I am sure the British public will want to hear the answer to my simple question about the 28,000 people who are non-domiciled in this country. What is the average length of time that they have been in this country? What is the longest and what is the shortest?

[Victoria Atkins]

I am genuinely grateful to the hon. Gentleman, because that helps me to set out the progress that has been made in that area in the last decade. Non-domicile tax contributions rightly play an important part in funding our public services. Non-doms pay UK tax on their UK income and gains, and they pay UK tax on foreign income and gains when those amounts are brought into the UK.

I know the hon. Member for Ealing North (James Murray) dismisses £7.9 billion out of hand, as though it is somehow not relevant, but I set out these facts precisely because that is a very large sum of money and it helps to fund public services. It is right, in having a reasoned debate about these measures, that we adhere to the facts.

Finance Bill

Debate between Victoria Atkins and Matt Western

2nd reading
Monday 28th November 2022 Commons Chamber

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

Let me start by echoing the condolences expressed by the hon. Member for Erith and Thamesmead (Abena Oppong-Asare) during what are very difficult times in her constituency. We send, obviously, our sincerest wishes to the families and friends of those two young men, and hope that the rest of the community, who must be finding this a very worrying time, manage to get through it as well.

I thank Members on both sides of the House for their contributions to the debate. My hon. Friend the Member for Eastleigh (Paul Holmes) said that the one wish of his constituents was for “boring leadership”, setting a challenge that I will try to face up to in my speech.

The Chancellor set out our economic plan to deal with the financial headwinds that we face now and in the coming months, and the next step in that plan is this Bill. We are taking these changes forward rapidly now because we are serious about fiscal sustainability, economic stability and growth. Before I talk about our plan, however, I will correct some “facts” that were given during the debate.

The Labour Front Benchers and the hon. Member for Warwick and Leamington (Matt Western) criticised our growth record, but, as my hon. Friend the Member for North East Bedfordshire (Richard Fuller) reminded us, over the last 12 years we have experienced the third highest growth in the G7, behind only the United States and Canada. That is some record of growth, but, oddly enough, it was absent from the speeches made by Opposition Members. The OBR has said that higher energy prices explain the majority of the downward revision in cumulative growth since March. It has confirmed that the recession is shallower, inflation is reduced, and about 70,000 jobs are protected as a result of our decisions.

[Matt Western]

Will the Minister give way?

[Victoria Atkins]

I will in a moment.

My hon. Friend the Member for Darlington (Peter Gibson) emphasised the importance of growth and levelling up. In his own constituency, he has seen the positive effects of what the Government have done. Only last week the Prime Minister visited the Darlington Economic Campus, along with the Exchequer Secretary. My hon. Friend the Member for Ipswich (Tom Hunt), and others, emphasised the importance of further education and, in particular, education for those with special educational needs. By 2024-25, £3.8 billion will have been invested in skills—and, of course, there is the Barber review, about which we have heard today.

My hon. Friend the Member for West Bromwich West (Shaun Bailey) outlined his admiration for the fact that, even in these difficult economic times, we are still protecting public services by investing billions of pounds in the health service and in education. We will continue to emphasise these facts as we move on with this work.

This Bill is part of our plan to deal with the international pressures caused by the invasion of Ukraine, inflation and the hangover from the pandemic. The changes to the energy profits levy will ensure that the oil and gas companies experiencing extraordinary profits pay their fair share of tax.

The changes to R&D tax relief ensure that the taxpayer gets better value for money as we continue to support the valuable research and development needed for long-term growth while cracking down on error and fraud. The changes to personal tax ensure that, although we are asking everyone to contribute a little more towards sustainable public finances, we do so in a fair way with the better-off shouldering a greater burden. The changes to the taxation of electric vehicles ensure that all motorists pay a fairer tax contribution while continuing to provide generous incentives to support EV uptake.

What is Labour’s plan? The one thing I heard seems to centre on non-doms. The problem with Labour’s plan is that the maths does not add up. Labour says its plan will save £3 billion but, in the last year, non-doms paid nearly £8 billion in income tax, corporation tax, capital gains tax and national insurance. What is more, they have invested £6 billion in investment schemes since 2012, which is precisely why we are taking a careful and considered approach. Indeed, the Chancellor told the Treasury Committee last week that we will continue to look at such schemes. But an interesting fact is that, in 2017, we were the Government who ended permanent non-dom status, which Labour did not manage to do in 13 years.

The energy profits levy and the electricity generator levy will raise £55 billion over the next six years from companies that should not and could not have expected such enormous profits—caused by the barbaric war in Ukraine—when they were putting their business plans in place one or two years ago. The investment allowance remains at its current value to allow companies to claim around £91 of tax relief for every £100 of investment. Again, Labour was against this but, as my hon. Friend the Member for Waveney (Peter Aldous) set out very cogently, businesses have to be able to invest, as that is how we will ensure our energy security over the coming years.

The same is true of R&D tax relief. My hon. Friend the Member for Amber Valley (Nigel Mills) reminded us of his experience as a trainee accountant, and my hon. Friend the Member for West Bromwich West wants an industrial revolution in the Black Country. I would like one in the east midlands, too. We aim to ensure that we get more bang for our buck from this tax relief by focusing the money where it will bring about the most profit.

My hon. Friend the Member for South Cambridgeshire (Anthony Browne) is proud of the life science superpower that is his constituency. We are listening, and we will consult on a single scheme design ahead of the Budget next spring. Of course, I will be delighted to meet him and others—I am already in the process of organising that meeting—to discuss how we can support smaller businesses.

My hon. Friend the Member for North East Bedfordshire asked whether tax credits are being paid more quickly. He knows we had to take extraordinary steps in response to a suspected criminal attack on the R&D tax credit scheme earlier this year. The necessary implementation of additional checks created a small backlog of claims, but this backlog has been cleared. We are now processing 80% of claims within 40 days, and we want to improve that figure even more.

Many Members talked about personal tax thresholds. We have tried to balance the needs of the country as a whole with the need to protect the most vulnerable. That is why those with the broadest shoulders carry the most weight, which is the fairest approach. The personal allowance will still be £2,150 higher in April 2028 than it would have been had it been uprated by inflation since 2010.

Finally, my hon. Friend the Member for Bracknell (James Sunderland) expressed concern about the electric vehicle measures. I drive an electric vehicle, and I think it is right that those who drive an electric vehicle on the roads should now contribute towards the upkeep of those roads. We should see that as a success of our plans to encourage more people to drive electric. We have 7 million electric vehicles on our roads, and we have every reason to believe the number will continue to increase, so it is right that electric vehicle drivers contribute towards the upkeep of the roads.

As my hon. Friend the Exchequer Secretary said at the beginning of this debate, the UK is facing challenging headwinds. That means that difficult decisions need to be taken to support the public finances, providing stability and certainty to markets, and providing the foundation for future growth. This Finance Bill will help to deliver those and, importantly, it will do so in a fair way, with the heaviest burden falling on those with the broadest shoulders. It forms an essential part of our plan for the economy, so I commend it to the House.

Question put, That the amendment be made.

Rape: Criminal Prosecutions

Debate between Victoria Atkins and Matt Western

Tuesday 28th June 2022 Commons Chamber

[Victoria Atkins]

I thank my hon. Friend, who brings his professional expertise into this Chamber. He is right to say that the focus on a victim’s credibility has in the past meant that too many cases are dropped when they should not be. We have therefore had the roll-out of this suspect-focused investigation technique, Operation Soteria, across the first five forces, and that learning is being shared nationally ahead of the national roll-out next year. This is what will make the real difference, both to the police and to the CPS.

[Matt Western (Warwick and Leamington) (Lab)]

The Minister will be aware that Warwickshire has the lowest conviction rate in the country and was one of the first forces to close its rape and serious sexual offences unit, doing so back in 2014. I have a case where an individual has been charged with two counts of rape. Originally, the plea hearing was back in December 2021. The court date was set for this August, but that has now been put back to May 2023, causing great distress to the victims, as the Minister can imagine. Beyond the dashboard she mentions, what is she doing specifically to address the issues in Warwickshire?

[Victoria Atkins]

I hope the hon. Gentleman will appreciate that I cannot comment on an individual case. On local policing, the local CPS and the application of all the measures we have talked about in this urgent question so far, the point of the dashboards is precisely to give him, me and others that data, which otherwise has not been collated, so that we can start asking those questions about individual areas. For example, we know that West Yorkshire is doing better than the national average on the police referring cases to the CPS. My question is: why can we not replicate that nationally? We are having those sorts of conversations, with non-defensive transparency, which, I hope, will really begin to see results for victims.

Rape and Sexual Violence

Debate between Victoria Atkins and Matt Western

Tuesday 8th March 2022 Commons Chamber

[Victoria Atkins]

May I correct the hon. Lady on that point about repeat offenders? People are managing it and monitoring it, albeit not through the scorecard. She will know of the offender management systems in place and the ViSOR—violent and sex offender register—system. She will also know, because we discussed it at great length during the passage of the Domestic Abuse Act 2021, of our programme to revolutionise the way the current system, MAPPA—the multi-agency public protection arrangements—works into MAPPS—the multi-agency public protection system—which will be able to track the most dangerous offenders in the ways both she and I want. We are offering these metrics precisely so that there can be scrutiny of the stages at which things are going right, or indeed wrong. Having produced national scorecards, we will soon produce local scorecards so we can look locally to see where good practice is happening and where other areas need to follow suit.

On the criminal justice system, we have recruited, as I hope the House knows, more than 11,000 police officers as part of our commitment to recruit 20,000 officers, and more than 100 prosecutors in the Crown Prosecution Service have already undertaken induction training on rape and serious sexual offences. On the point raised about mobile phones and the data strip search, again, having listened to victims, charities that support survivors and the Domestic Abuse Commissioner and the Victims’ Commissioner, we have in the Police, Crime, Sentencing and Courts Bill set out the legal framework for digital data downloads. We understand how that can be so terribly difficult for victims and their willingness, frankly, to go along with a case.

The issue of specialism has been raised. That is why we are supporting Operation Soteria, a joint police and CPS programme of work whereby they turn the investigation on its head, from looking at the victim to looking at the suspect. That is clearly the way forward and we have committed to expanding the initial work from five areas to, in the next tranche, 14. We will be rolling this out nationally, but we have to do it through the staged approach because one can imagine, I hope, the differences between a huge metropolitan force and a much smaller, more rural force in terms of economies of scale and ways of working. We are doing it in an iterative, careful way so that when we make change we make effective change that has meaningful and positive consequences for victims.

We are focusing even more on victim support, too. We are putting victims at the heart of the system so that they get the support they need to continue with such cases. We are providing an unprecedented £150 million to victims support services this year, an increase of over £100 million on the budget in 2010-11, and we have committed to increasing funding for all victims support services to £185 million by 2024-25, including increasing the number of independent sexual and domestic violence advisers, because we know that victims who have access to IDVAs and ISVAs are nearly 50% more likely to stay engaged with the criminal justice process.

We are also commissioning a new national helpline and online services for victims of rape and sexual violence, which will be available 24/7. This is a real step forward. We want victims to be able to get help when they need it. We have seen the huge successes of the national domestic abuse helpline and I want to replicate that for victims of sexual violence.

[Matt Western (Warwick and Leamington) (Lab)]

Does the Minister agree that many police forces no longer have RASSO—rape and serious sexual offences—units? Does she think they should have them?

[Victoria Atkins]

We have different agencies involved in the criminal justice system. Sometimes, there is an understandable wish in the Chamber for us to be able to control everything from the Dispatch Box, but we have a strong tradition of chief constables directing their personnel, training and so on. I have to say that the reaction of the police to Operation Soteria has been truly committed. They want to make the sort of changes we are already beginning to see with Op Soteria. I genuinely believe that, through Soteria, we will begin to see real change in policing. With the roll-out of that in the pilot areas, national learning is already being shared and that will roll through forces—even those not in the next tranche of 14.

I am conscious about giving Back Benchers time, so I will pick up just a couple more points. I hope that the House supports our decision to include violence against women and girls in the strategic policing requirement, which means that it must be prioritised as other serious crimes such as homicide, serious and organised crime and terrorism are prioritised. Of course, through the Domestic Abuse Act 2021 and previous measures, this place has strengthened the law on things such as the so-called rough sex defence and the new offence of non-fatal strangulation. Indeed, the police Bill, which is in the other place, will increase the time that sexual offenders serving sentences for offences of particular concern must spend in prison from half their custodial term to two thirds.

We have heard about the roll-out of section 28, which, in fairness, I think the Opposition welcome. That is one of the levers by which we will really make progress on the timing of cases. If we can persuade the CPS and judges to permit victims to give their pre-recorded evidence at a very early stage in a case after investigation, that will help with timeliness. There is hope and expectation that that will increase guilty pleas, but also it will help victims to give their best evidence in a timely fashion, and juries will, in due course, be able to consider it. We will roll that out as soon as is practicable.

My hon. Friend the Member for Newbury (Laura Farris) highlighted the issue of cases being knocked off the list, floaters and so on. Again, we expect that section 28 will be able to deal with some of listing issues that she rightly raised..