Browse content similar to 21/02/2018. Check below for episodes and series from the same categories and more!
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Herb to do so. I don't think we can
detain the Chamber now. -- her to do | 0:00:00 | 0:00:03 | |
so. We will leave it there for now.
If there are no further points of | 0:00:03 | 0:00:08 | |
order, we come to the statement from
the Secretary of State for Health | 0:00:08 | 0:00:15 | |
and social care. Secretary Jeremy
Hunt. With permission I would like | 0:00:15 | 0:00:19 | |
to make a statement setting out the
action government is taking to | 0:00:19 | 0:00:23 | |
address public concerns regarding
the safety of medicines and medical | 0:00:23 | 0:00:27 | |
devices used by the NHS. On Friday I
will host campaigners, clinicians | 0:00:27 | 0:00:33 | |
and safety experts from across the
world as part of the patient safety | 0:00:33 | 0:00:39 | |
and science summit, being held for
the first time outside the United | 0:00:39 | 0:00:43 | |
States in London. We will release up
reports on the extent of medical, | 0:00:43 | 0:00:55 | |
medication errors. There are three
areas of potential medication error | 0:00:55 | 0:00:59 | |
that I wish to update the house on.
The first is Primidos, hormone | 0:00:59 | 0:01:16 | |
-based medication that was
prescribed to one and a half million | 0:01:16 | 0:01:20 | |
women before it was withdrawn from
use in 1978, partly due to more | 0:01:20 | 0:01:26 | |
modern pregnancy tests becoming
available. The second is an | 0:01:26 | 0:01:32 | |
anti-epilepsy drug which has been
definitively linked to autism and | 0:01:32 | 0:01:36 | |
learning disabilities in children
were taken during pregnancy. | 0:01:36 | 0:01:41 | |
Campaigners have suggested up to
20,000 children may be affected. The | 0:01:41 | 0:01:48 | |
third is the giant zero mesh
implants which are used to address | 0:01:48 | 0:01:52 | |
covered patients after childbirth
which have been linked to crippling | 0:01:52 | 0:01:55 | |
life changing side-effects. Of
course our first thoughts are with | 0:01:55 | 0:02:01 | |
the individuals and families whose
lives have been turned upside down | 0:02:01 | 0:02:04 | |
by these issues. Many have enjoyed
and continued to endure | 0:02:04 | 0:02:14 | |
complications, distress and
ill-health, alongside a strong sense | 0:02:14 | 0:02:20 | |
that their concerns have not reached
a satisfactory resolution. I paid | 0:02:20 | 0:02:24 | |
particular tribute to those who have
responded to such experiences, not | 0:02:24 | 0:02:30 | |
just with understandable anger, but
with also a resolute determination | 0:02:30 | 0:02:36 | |
to campaign for change. Many have
met ministers and members of this | 0:02:36 | 0:02:40 | |
House and I thank everyone who has
written to me or spoken to me | 0:02:40 | 0:02:46 | |
personally to raise these concerns
on behalf of their constituents. We | 0:02:46 | 0:02:50 | |
must acknowledge that the response
to these issues from those in | 0:02:50 | 0:02:57 | |
positions of authority have not been
good enough. Sometimes the reaction | 0:02:57 | 0:03:01 | |
felt overly focused on defending the
status quo rather than addressing | 0:03:01 | 0:03:04 | |
the needs of patients. As a result,
patients and their families have | 0:03:04 | 0:03:09 | |
spent too long feeling as though
they have not been listened to, | 0:03:09 | 0:03:15 | |
making the agony of a complicated
medical situation worse. Today, in | 0:03:15 | 0:03:20 | |
addition to practical steps for each
of these three cases, I am setting | 0:03:20 | 0:03:25 | |
out plans to establish a fairer,
quicker and more compassionate ways | 0:03:25 | 0:03:29 | |
of addressing issues when they
arise, bringing different voices to | 0:03:29 | 0:03:32 | |
the table from the start and giving
individuals and their families a | 0:03:32 | 0:03:37 | |
clear path to answers and
resolution. In terms of immediate | 0:03:37 | 0:03:42 | |
action in each of the three cases,
on Primidos I've asked my | 0:03:42 | 0:03:48 | |
ministerial colleague Lord
O'Shaughnessy had to drive forward | 0:03:48 | 0:03:52 | |
where possible accelerate the
recommendations of the expert | 0:03:52 | 0:03:57 | |
working group, further strengthening
our systems for monitoring the | 0:03:57 | 0:04:00 | |
safety of medicines in pregnancy.
This will include offering the | 0:04:00 | 0:04:04 | |
families of the Association for
children damaged by hormone | 0:04:04 | 0:04:07 | |
pregnancy tests for up-to-date
genetic clinical evaluation. Better | 0:04:07 | 0:04:12 | |
information for pregnant women and
their families, better training and | 0:04:12 | 0:04:17 | |
support for obstetricians, better
evidence around dosing | 0:04:17 | 0:04:19 | |
recommendations, making electronic
yellow card reporting directly | 0:04:19 | 0:04:26 | |
available to clinicians and patients
at the point of care and stronger | 0:04:26 | 0:04:30 | |
and more joined up messages on
safety. On the autism drug, the | 0:04:30 | 0:04:37 | |
issue is broader than the UK and the
outcome of the EU review expected in | 0:04:37 | 0:04:43 | |
March will strengthen our position.
In preparation we have tossed system | 0:04:43 | 0:04:48 | |
leaders with coordinating a rapid
response, responding to calls from | 0:04:48 | 0:04:53 | |
patients as well we have introduced
a new warning symbol. | 0:04:53 | 0:05:07 | |
We are strengthening alerts across
all GP systems and community | 0:05:08 | 0:05:12 | |
pharmacy systems as the those women
who benefit from the treatment, | 0:05:12 | 0:05:22 | |
offering more information. On the
journal mesh, I've spoken to the | 0:05:22 | 0:05:29 | |
Chief Medical Officer regarding a
complete ban. She is clear that | 0:05:29 | 0:05:34 | |
clinical experts here and abroad
have noted that many women will gain | 0:05:34 | 0:05:40 | |
benefits from this when used
properly. Therefore a full ban is | 0:05:40 | 0:05:46 | |
not appropriate. However this is not
to minimise the suffering that many | 0:05:46 | 0:05:51 | |
women have experienced, which is why
today I can announce we will be | 0:05:51 | 0:05:56 | |
publishing a retrospective audit to
investigate the link between patient | 0:05:56 | 0:06:00 | |
level data to explore outcomes and
investing £1.1 million to develop a | 0:06:00 | 0:06:06 | |
database for the final -- for the
journal mesh. This will improve the | 0:06:06 | 0:06:13 | |
way regulators and the NHS deal with
issues relating to joiner not mesh | 0:06:13 | 0:06:21 | |
and Valproate, as well as ensuring
the safety of medicines during | 0:06:21 | 0:06:24 | |
pregnancy. But that it has taken so
long to do with these issues raises | 0:06:24 | 0:06:31 | |
other questions. It's a principle of
patient safety about the regular | 0:06:31 | 0:06:37 | |
environment gives voice to
legitimate concerns reported by | 0:06:37 | 0:06:42 | |
patients, families and campaigners
and works alongside them and | 0:06:42 | 0:06:44 | |
response to them in a rapid, open
and compassionate way to resolve | 0:06:44 | 0:06:51 | |
issues when they raise. My view is
that this did not happen in the way | 0:06:51 | 0:06:55 | |
I would expect in these three cases.
To do better in the future we need | 0:06:55 | 0:07:00 | |
to ensure that patient voices are
brought to the table and | 0:07:00 | 0:07:05 | |
systematically and consistently as
other voices in the system. So today | 0:07:05 | 0:07:10 | |
I have asked for a review to be
conducted into what happened in each | 0:07:10 | 0:07:14 | |
of these three cases, including
Whetherby processes pursued to date | 0:07:14 | 0:07:21 | |
have been satisfactory and to make
recommendations on what should | 0:07:21 | 0:07:23 | |
happen in the future. She will
assess firstly the robustness and | 0:07:23 | 0:07:29 | |
speed of the process is followed by
the relevant authorities and | 0:07:29 | 0:07:32 | |
clinical bodies to make sure
appropriate guidelines are followed. | 0:07:32 | 0:07:42 | |
Also, did the appropriate bodies
engage with those who are concerned | 0:07:42 | 0:07:49 | |
properly. Whether there has been
sufficient communication and and how | 0:07:49 | 0:08:06 | |
we look at cases in the future. When
there has been widespread harm, | 0:08:06 | 0:08:10 | |
there needs to be a fuller or even
statutory public enquiry. | 0:08:10 | 0:08:15 | |
Recommendations will be made as to
the right process to make sure | 0:08:15 | 0:08:20 | |
justice is done and maintain public
confidence that such decisions have | 0:08:20 | 0:08:24 | |
been taken fairly. Whilst I'm
delivery leaving the terms of this | 0:08:24 | 0:08:30 | |
open, I've asked that we consider
how we strike the right balance. How | 0:08:30 | 0:08:39 | |
to best support patients when there
might not be a scientific issue, but | 0:08:39 | 0:08:49 | |
they have suffered harm. Whether a
patient's champion will raise as a | 0:08:49 | 0:09:00 | |
point of contact, ensuring that
concerns are heard and responded to | 0:09:00 | 0:09:05 | |
and how any new entity interacts
with new bodies. Recognising that | 0:09:05 | 0:09:11 | |
this has been an issue that many
honourable members have been | 0:09:11 | 0:09:13 | |
concerned about, I've asked the
baroness to meet with other parties | 0:09:13 | 0:09:23 | |
early on in the process. We are
proud of the NHS. Much of this have | 0:09:23 | 0:09:32 | |
been built on the strong connection
between scientific discovery and and | 0:09:32 | 0:09:37 | |
medical process but innovation
requires safeguards, including a | 0:09:37 | 0:09:42 | |
culture of learning to protect
against the unintended consequences | 0:09:42 | 0:09:47 | |
of new technology and a clear focus
on the treatment of patients and | 0:09:47 | 0:09:51 | |
their families affected by these
consequences. From Mid Staffs to | 0:09:51 | 0:09:58 | |
southern health, patients and their
families have had to spend too much | 0:09:58 | 0:10:02 | |
time and energy trying to access
hearings for their concerns. The | 0:10:02 | 0:10:09 | |
stress of campaigning, sometimes in
the face of a closed ranked system | 0:10:09 | 0:10:22 | |
is adding insult to injury. I work
regular tree system is in many ways | 0:10:22 | 0:10:29 | |
were bleeding, but it also needs to
add to a changing environment and | 0:10:29 | 0:10:34 | |
draw intelligently on multiple
sources of feedback to protect the | 0:10:34 | 0:10:38 | |
safety of patients. So the
announcement today will build a | 0:10:38 | 0:10:42 | |
system that listens, hears and acts
with speed, compassion and | 0:10:42 | 0:10:48 | |
proportionality, strengthening the
commitment to patient safety which | 0:10:48 | 0:10:51 | |
is at the heart of this government
and this house's ideal. I welcome | 0:10:51 | 0:11:04 | |
the tone of his remarks and
generally welcome his commitment to | 0:11:04 | 0:11:09 | |
review medical device safety. I do
know the Labour manifesto of 2017 | 0:11:09 | 0:11:16 | |
called for an enquiry into this. The
announcement today is an | 0:11:16 | 0:11:20 | |
acknowledgement that there are major
issues that go back decades. Members | 0:11:20 | 0:11:29 | |
across this House have offered
moving testimonies about the | 0:11:29 | 0:11:33 | |
devastating impact of mesh, Primidos
and sodium Valproate that has | 0:11:33 | 0:11:42 | |
affected the lives of many children
and women. I'd like to pay tribute | 0:11:42 | 0:11:48 | |
to all the campaign and MPs from all
sides, especially those who have | 0:11:48 | 0:11:52 | |
worked so hard with the all-party
groups. They spent many years | 0:11:52 | 0:12:01 | |
campaigning for justice on these
issues. We've heard how mesh | 0:12:01 | 0:12:06 | |
implants have left women in
permanent pain, unable to walk, | 0:12:06 | 0:12:10 | |
unable to work. This is an ongoing
public health scandal and we hope | 0:12:10 | 0:12:14 | |
the government will do much more to
support those affected. | 0:12:14 | 0:12:21 | |
Mesh has been suspended in Scotland
and banned in other countries around | 0:12:21 | 0:12:24 | |
the world. I understand it has been
paused in the case of prolapse. Will | 0:12:24 | 0:12:30 | |
he consider suspending the use of it
totally while this review is carried | 0:12:30 | 0:12:33 | |
out? On primados, he said he will
follow-up recommendations of the | 0:12:33 | 0:12:43 | |
expert working group, but does he
accept that this report was met with | 0:12:43 | 0:12:47 | |
concern from all sides of the House?
Campaigners branded it a whitewash. | 0:12:47 | 0:12:52 | |
I am grateful that he has included
sodium valproate. My own | 0:12:52 | 0:12:58 | |
constituent, Emma Friedman, took
sodium valproate during and after | 0:12:58 | 0:13:02 | |
her pregnancy, leaving her son with
severe autism, along with hearing | 0:13:02 | 0:13:07 | |
and sight problems. Andrew, who is
now waiting, needs round the clock, | 0:13:07 | 0:13:11 | |
full-time care. Emma, like thousands
of others affected, was never fully | 0:13:11 | 0:13:16 | |
informed of the risks of taking
sodium valproate during pregnancy. | 0:13:16 | 0:13:21 | |
Last year, a charity survey found
that almost one fifth of women | 0:13:21 | 0:13:26 | |
taking this drug still don't know
the risks this medicine can pose | 0:13:26 | 0:13:29 | |
during pregnancy. So, I welcome the
Government efforts to raise | 0:13:29 | 0:13:34 | |
awareness of the issues, but can he
tell us if the review will look at | 0:13:34 | 0:13:38 | |
the guidelines for clinicians who
prescribed sodium valproate to women | 0:13:38 | 0:13:42 | |
of child-bearing age? Mr Speaker, we
do offer this review our support, | 0:13:42 | 0:13:48 | |
though we note it falls short of the
calls for a full public enquiry that | 0:13:48 | 0:13:54 | |
campaigners have been demanding. Can
he give the House and absolute | 0:13:54 | 0:13:59 | |
reassurance that this review will
gain access to at medicine | 0:13:59 | 0:14:05 | |
regulation files held on The
National Archives, access to | 0:14:05 | 0:14:09 | |
valuable evidence cited in what were
on unsuccessful legal actions, | 0:14:09 | 0:14:15 | |
access to files held by
pharmaceutical companies, and that | 0:14:15 | 0:14:19 | |
all such information will be made
public? Does he agree that those | 0:14:19 | 0:14:23 | |
affected must have trust and
confidence in this review? Who will | 0:14:23 | 0:14:26 | |
the noble Baroness report to? And
who will provide the Secretariat to | 0:14:26 | 0:14:31 | |
this review? I say this with no
sense of this courtesy to the | 0:14:31 | 0:14:38 | |
Department, but does he agree that
the review must be independent to | 0:14:38 | 0:14:44 | |
avoid any sense of conflict of
interest that has hampered previous | 0:14:44 | 0:14:47 | |
enquiries? I understand the terms of
reference, but can I press him to | 0:14:47 | 0:14:54 | |
undertake to ensure that victims
agree with the terms of reference in | 0:14:54 | 0:14:58 | |
order to maintain trust and
confidence in this review? Also, is | 0:14:58 | 0:15:02 | |
he now ruling out a full public
enquiry, or is he saying to the | 0:15:02 | 0:15:08 | |
victims to wait until the outcome of
this review? And when can we expect | 0:15:08 | 0:15:13 | |
this review to report back to the
House? More broadly, can the | 0:15:13 | 0:15:21 | |
Secretary of State agree that there
will be three separate strands | 0:15:21 | 0:15:26 | |
looking at each of the issues in
depth to ensure that nothing gets | 0:15:26 | 0:15:29 | |
watered down and lost was like in
the broader context of Brexit, where | 0:15:29 | 0:15:35 | |
uncertainty remains as we leave the
European medicines agency, does he | 0:15:35 | 0:15:38 | |
agree that this review must inform
the regulatory systems are the | 0:15:38 | 0:15:42 | |
future and take into account how we
best cooperate with other regulators | 0:15:42 | 0:15:45 | |
after Brexit? What assurances can he
offer the House that medicines and | 0:15:45 | 0:15:51 | |
devices women use today, especially
pregnant women, will not become the | 0:15:51 | 0:15:57 | |
tragic and desperate scandals of the
future? And finally, on the | 0:15:57 | 0:16:04 | |
treatment of victims involved, he
will know that many women have been | 0:16:04 | 0:16:08 | |
denied access to legal aid to pursue
compensation claims. Does he agree | 0:16:08 | 0:16:12 | |
that women and children deserve full
compensation and support? Is that | 0:16:12 | 0:16:20 | |
not the responsibility of
Government, Mr Speaker? Will the | 0:16:20 | 0:16:22 | |
Government establish a compensation
fund? And what consideration has he | 0:16:22 | 0:16:28 | |
given to compelling the
pharmaceutical industry to support a | 0:16:28 | 0:16:34 | |
compensation fund for those
affected? Finally, Mr Speaker, the | 0:16:34 | 0:16:40 | |
mesh, sodium Valparaiso, primados
has devastated the lives of hundreds | 0:16:40 | 0:16:47 | |
of thousands of women and children.
Isn't it time they were given a full | 0:16:47 | 0:16:52 | |
apology? Surely it's the very least
they deserve. I thank him for his | 0:16:52 | 0:17:06 | |
response and the tone of it. I want
to thank the all-party group who | 0:17:06 | 0:17:11 | |
have worked incredibly hard to raise
this important issue. Let me go | 0:17:11 | 0:17:16 | |
through the points that he raises,
because he asked some detailed | 0:17:16 | 0:17:19 | |
questions which I want to give a
proper answer to. First, when it | 0:17:19 | 0:17:24 | |
comes to mesh, there is no EU
country that has banned its use, and | 0:17:24 | 0:17:34 | |
indeed Australia and New Zealand
have not introduced a full band. We | 0:17:34 | 0:17:40 | |
have taken very clear advice. We
have responsibility to all patients, | 0:17:40 | 0:17:44 | |
and the medical advice from the
Chief Medical Officer is clear, that | 0:17:44 | 0:17:47 | |
some women do benefit from mesh if
it is appropriately used, and so we | 0:17:47 | 0:17:53 | |
are following that advice. However,
this review is going to be looking | 0:17:53 | 0:17:59 | |
at all the processes around mesh. We
will publish Nice guidelines on | 0:17:59 | 0:18:08 | |
persistent pain and ventral meshes.
It is important to say that they are | 0:18:08 | 0:18:12 | |
used in men as well as women, and it
is right to say that we have to get | 0:18:12 | 0:18:16 | |
this right. I fully accept the point
he makes about the concerns of many | 0:18:16 | 0:18:20 | |
patients and families about the
findings of the expert working | 0:18:20 | 0:18:24 | |
group. He will know that this is a
very difficult and hotly contested | 0:18:24 | 0:18:31 | |
area. We are not proposing to
revisit the science. However, we are | 0:18:31 | 0:18:43 | |
giving Baroness Cumberlege to look
at what the expert working group did | 0:18:43 | 0:18:46 | |
and coming to her own conclusions.
We are not excluding looking at what | 0:18:46 | 0:18:51 | |
happened, though we think it is
important to accept throughout this | 0:18:51 | 0:18:53 | |
that we do have to follow the
science at every stage in order to | 0:18:53 | 0:18:57 | |
get this absolutely right. What we
will do is going forward with some | 0:18:57 | 0:19:02 | |
important recommendations of the
expert working group, regardless, | 0:19:02 | 0:19:06 | |
such as the yellow card system,
could don't know because one thing | 0:19:06 | 0:19:11 | |
that is clear is that when people
have an immediate concern about a | 0:19:11 | 0:19:16 | |
medicine, there isn't an easy way to
raise the concern quickly and | 0:19:16 | 0:19:21 | |
easily. If women are raising these
concerns all over the country, we | 0:19:21 | 0:19:25 | |
need to find out about that very
quickly at the centre so we can take | 0:19:25 | 0:19:28 | |
action more quickly than happened in
this case. We will go forward with | 0:19:28 | 0:19:32 | |
offering genetic testing to families
who have suffered as a result, or | 0:19:32 | 0:19:37 | |
who think they have suffered as a
result of Primodos. On sodium | 0:19:37 | 0:19:43 | |
Valkyrie, we will issue guidelines
to clinicians. We want to make sure | 0:19:43 | 0:19:47 | |
there is greater awareness among
patients. -- -- sodium valproate. We | 0:19:47 | 0:19:55 | |
want to push for this to be a
contract indication for women of | 0:19:55 | 0:19:59 | |
child-bearing age who are not taking
effective contraception, because it | 0:19:59 | 0:20:04 | |
is important to get this right. He
makes a very important points about | 0:20:04 | 0:20:09 | |
the public enquiry. I think we are
asking Baroness Cumberlege to give | 0:20:09 | 0:20:17 | |
her considered view as to what is
the appropriate way forward in this | 0:20:17 | 0:20:20 | |
case. What I would say to him, and
that, of course, has implications on | 0:20:20 | 0:20:27 | |
the issue of compensation, but I
would say that we have, I think, a | 0:20:27 | 0:20:31 | |
problem in our system at the moment
where there isn't a proper process | 0:20:31 | 0:20:34 | |
for deciding what next steps are
appropriate. An investigation by NHS | 0:20:34 | 0:20:42 | |
England and the department, or a
full public enquiry? The question we | 0:20:42 | 0:20:46 | |
particularly want her to look at is
whether we should have an | 0:20:46 | 0:20:49 | |
independent process to evaluate what
has happened, because we might... We | 0:20:49 | 0:20:56 | |
have been approached in his time by
people who want public enquiries, | 0:20:56 | 0:21:00 | |
but it should not just be about the
strength of the lobbying. There | 0:21:00 | 0:21:03 | |
needs to be some process, because
there may be people who do not have | 0:21:03 | 0:21:06 | |
a loud voice who are equally worthy
of a public enquiry who don't get | 0:21:06 | 0:21:10 | |
considered in the system at the
moment, and that wouldn't be right. | 0:21:10 | 0:21:14 | |
Baroness Cumberlege will be
reporting to ministers, not to the | 0:21:14 | 0:21:19 | |
NHRA. And there will be full
consultation -- MHRA. There will be | 0:21:19 | 0:21:27 | |
full contact with the families over
the terms of reference, which is the | 0:21:27 | 0:21:31 | |
right thing to do. The final point,
which is an important one, is the | 0:21:31 | 0:21:36 | |
issue of how we read gain the trust
of families deeply scarred by these | 0:21:36 | 0:21:42 | |
issues. And I think there are two
main ways that we do this. First, | 0:21:42 | 0:21:46 | |
openness and transparency in
everything we do in this process, so | 0:21:46 | 0:21:51 | |
that they can see we want to get to
the bottom of this as much as they | 0:21:51 | 0:21:54 | |
do. Secondly, by recognising that
there is this fundamental issue that | 0:21:54 | 0:21:59 | |
when we've assessed these clinical
medical safety issues in the past, | 0:21:59 | 0:22:04 | |
the voice of patients has not been
as strong as it should be. And that | 0:22:04 | 0:22:08 | |
is something that we have to put
right. I know everyone in the NHS, | 0:22:08 | 0:22:12 | |
as in this House, is committed to
doing so. Thank you, Mr Speaker. I | 0:22:12 | 0:22:17 | |
welcome the statement today from the
Secretary of State, and his ongoing | 0:22:17 | 0:22:20 | |
focus on patient safety, which has
added so much to patients, and | 0:22:20 | 0:22:24 | |
clearly representing the voice of
patients in lessons to be learned in | 0:22:24 | 0:22:29 | |
the future. Many of those who have
been courageous in coming forward, | 0:22:29 | 0:22:32 | |
including many of my own
constituents, have been harmed | 0:22:32 | 0:22:36 | |
within the private sector. Will the
Secretary of State confirm that | 0:22:36 | 0:22:40 | |
patients, wherever they are treated,
will be included within this review, | 0:22:40 | 0:22:43 | |
and that there will be a focus on
clinical governance not only in the | 0:22:43 | 0:22:47 | |
NHS but also in the private sector?
I can absolutely give that | 0:22:47 | 0:22:51 | |
assurance. And we are looking at
ways to strengthen oversight, | 0:22:51 | 0:22:58 | |
because a tragedy is a tragedy,
wherever it happens, and we should | 0:22:58 | 0:23:01 | |
among the highest standards of care
throughout our health care system. | 0:23:01 | 0:23:06 | |
And we are particularly looking at
the issue of data sharing. Very | 0:23:06 | 0:23:11 | |
often, the clinicians operate in
both the NHS and the private sector, | 0:23:11 | 0:23:19 | |
and we don't want to have two
datasets. We want to share | 0:23:19 | 0:23:23 | |
information in a way that will make
patients safer. I thank the | 0:23:23 | 0:23:30 | |
Secretary of State for advance sight
of his statements. I am sure that | 0:23:30 | 0:23:33 | |
women affected by these medicines
and devices may be sceptical that | 0:23:33 | 0:23:37 | |
the Government has announced a
review of reviews. Medical safety | 0:23:37 | 0:23:45 | |
and licensing are reserved matters.
While we welcome the fact that the | 0:23:45 | 0:23:48 | |
Government isn't doing nothing, it
is disappointing that the review | 0:23:48 | 0:23:51 | |
will not look at the scientific
evidence on Primodos, sodium | 0:23:51 | 0:23:57 | |
valproate and surgical mesh.
Everyone needs the confidence that | 0:23:57 | 0:24:02 | |
this won't turn into simply a
Government whitewash. How can | 0:24:02 | 0:24:09 | |
patients be sure of independence?
Who will take a final decision on | 0:24:09 | 0:24:13 | |
who advises the chair? And will
those affected and who took part in | 0:24:13 | 0:24:17 | |
initial reviews be able to
participate? He will also be aware | 0:24:17 | 0:24:21 | |
that Professor Alison Britton is
leading an internet -- an | 0:24:21 | 0:24:25 | |
independent review of vaginal mesh
in Scotland, and will DC to take | 0:24:25 | 0:24:28 | |
advice and sounded from her bindings
and expertise in this process? -- | 0:24:28 | 0:24:34 | |
will he seek to take... Does he
think that setting up a mechanism | 0:24:34 | 0:24:42 | |
within his department to collate
extensive qualitative research from | 0:24:42 | 0:24:45 | |
patients would be a useful function?
I think, with respect to the | 0:24:45 | 0:24:52 | |
honourable gentleman, he is being a
little bit uncharitable, describing | 0:24:52 | 0:24:57 | |
this as a review of reviews. We have
announced immediate actions in each | 0:24:57 | 0:25:02 | |
of these three cases which will
happen right away, of huge | 0:25:02 | 0:25:04 | |
significance with respect to the use
of sodium valproate, help for | 0:25:04 | 0:25:12 | |
families who think they have
suffered as a result of Primodos, | 0:25:12 | 0:25:15 | |
and in terms of the use of mesh. A
lot of things are happening right | 0:25:15 | 0:25:20 | |
away. I think it is important that
these are complex issues and if we | 0:25:20 | 0:25:23 | |
are going to step back and look at
the systemic failures that we think | 0:25:23 | 0:25:26 | |
have happened, then we need to step
back and ask what are the changes | 0:25:26 | 0:25:29 | |
that we need? That is why we need
someone Baroness Cumberlege's | 0:25:29 | 0:25:35 | |
experience. I would just say that
this is someone who has got a huge | 0:25:35 | 0:25:39 | |
track record on campaigning on
women's issues. She was a minister | 0:25:39 | 0:25:42 | |
at the Department of Health for five
years, she did the Better Births | 0:25:42 | 0:25:49 | |
review for the NHS in 2015. She is
hugely experienced and passionate | 0:25:49 | 0:25:53 | |
about patient safety and making sure
that the patient's voice is heard. | 0:25:53 | 0:25:58 | |
Could I welcome this review and the
announcement of Baroness Cumberlege | 0:25:58 | 0:26:04 | |
as lead. I am sure the whole House
will agree that she is highly | 0:26:04 | 0:26:08 | |
qualified and trusted. Can I pay
tribute to the women, particularly | 0:26:08 | 0:26:12 | |
many hundreds of thousands of them,
who have suffered in silence and who | 0:26:12 | 0:26:15 | |
have campaigned so effectively. I
have seen the passion and the silent | 0:26:15 | 0:26:28 | |
suffering with which so many women
have had to be. He is right that for | 0:26:28 | 0:26:31 | |
too long the medical establishment
has tended to link arms and act very | 0:26:31 | 0:26:36 | |
protectively when challenged, and we
need to make sure that the patient | 0:26:36 | 0:26:39 | |
voice is put at the heart of this.
Would he agree with me on to things: | 0:26:39 | 0:26:43 | |
First, it is important that this is
not some witchhunt? It must be a | 0:26:43 | 0:26:49 | |
review of the evidence, the science,
the clinical data, in order to avoid | 0:26:49 | 0:26:56 | |
future patient suffering. If it is
couched in legal liability, everyone | 0:26:56 | 0:26:58 | |
will draw in and resist the sharing
of evidence. Secondly, will he look | 0:26:58 | 0:27:02 | |
at the issue of training on the
issue of mesh? Be MHRA have licensed | 0:27:02 | 0:27:07 | |
the device. I understand the problem
is with the training of clinicians | 0:27:07 | 0:27:11 | |
in installing it. | 0:27:11 | 0:27:16 | |
I would like to put on record my
thanks to my honourable friend for | 0:27:16 | 0:27:22 | |
his work that led to the setting up
of the expert working group which I | 0:27:22 | 0:27:26 | |
think has taken this issue forward.
He championed that and was | 0:27:26 | 0:27:34 | |
incredibly helpful. I've taken on
board both his points. It's right | 0:27:34 | 0:27:38 | |
that this needs to focus on patient
safety and how we put in place | 0:27:38 | 0:27:43 | |
processes that help people who are
suffering now and avoid this in the | 0:27:43 | 0:27:47 | |
future and the training points are a
good one. I welcome his statement, | 0:27:47 | 0:27:51 | |
though it would have been nice for
the victims to have heard a little | 0:27:51 | 0:27:55 | |
bit more about the legal aid and the
compensation issue. He was right to | 0:27:55 | 0:27:59 | |
describe our regular tree framework
as world leading. It is European and | 0:27:59 | 0:28:05 | |
precautionary base, so will he
disassociate himself from the | 0:28:05 | 0:28:08 | |
comments of the Foreign Secretary
last week who included medicines | 0:28:08 | 0:28:15 | |
regulation where he favours for
divergences? Is he knows because we | 0:28:15 | 0:28:22 | |
have had these discussions at the
select committee, we in this country | 0:28:22 | 0:28:26 | |
make an enormous contribution to the
way medicines regulation happens | 0:28:26 | 0:28:30 | |
across Europe because of our
extensive scientific base and we are | 0:28:30 | 0:28:35 | |
happy and very much hope those links
will continue. The first thing I | 0:28:35 | 0:28:43 | |
would like to say is I welcome the
review into the yellow car process | 0:28:43 | 0:28:50 | |
because the first responsibility of
a doctor is always to do no harm and | 0:28:50 | 0:28:53 | |
every doctor when they are making
any prescribing difference is | 0:28:53 | 0:28:59 | |
balancing the improvement in patient
care with the risks that are known | 0:28:59 | 0:29:01 | |
at the time to occur. Sometimes as
mod drugs are given to a greater | 0:29:01 | 0:29:08 | |
number of people, other side-effects
will come through. The improvements | 0:29:08 | 0:29:12 | |
in the yellow card system will help
them to be identified earlier. There | 0:29:12 | 0:29:20 | |
was a drug that is used to treat
acne that is very toxic in | 0:29:20 | 0:29:29 | |
pregnancy. I wonder if some of these
drugs that do provide benefits, but | 0:29:29 | 0:29:36 | |
are known to be harmful, that would
have the same approach? Her question | 0:29:36 | 0:29:44 | |
demonstrates how useful it is to
have people with medical experience | 0:29:44 | 0:29:48 | |
in this House. The broad point she
makes is right. The difficulty in | 0:29:48 | 0:29:53 | |
the issues we are talking about
today is how much they affect women | 0:29:53 | 0:29:58 | |
and a number of them affect pregnant
women and one of the things we want | 0:29:58 | 0:30:03 | |
to establish through this review is
whether we are doing less well than | 0:30:03 | 0:30:09 | |
we should on women's health issues
and that's why because Baroness | 0:30:09 | 0:30:13 | |
Cumberlege has done more campaigning
on women's health issues than anyone | 0:30:13 | 0:30:19 | |
in both houses, she's the right
person to take this forward. She is | 0:30:19 | 0:30:24 | |
right about strengthening
protections for pregnant women. As | 0:30:24 | 0:30:28 | |
the chair on hormone pregnancy tests
I'm disappointed with wording of | 0:30:28 | 0:30:42 | |
today's review. Families and victims
of Primidos have waited 40 years. It | 0:30:42 | 0:30:48 | |
was a deliberate criminal cover-up
by the statutory authorities. The | 0:30:48 | 0:30:56 | |
scientific evidence shows that there
is a link between Primidos and | 0:30:56 | 0:31:01 | |
deformities which was made to the
drugs companies 40 years ago and to | 0:31:01 | 0:31:04 | |
the regulatory bodies as well. Can I
ask the Secretary of State to ensure | 0:31:04 | 0:31:10 | |
this review, which I have to say we
would want a full public enquiry, | 0:31:10 | 0:31:14 | |
looks at the regular tree failures
that took place 40 years ago. There | 0:31:14 | 0:31:18 | |
was a systematic deliberate
cover-up, destruction of documents | 0:31:18 | 0:31:24 | |
by our health bodies as well as the
drug manufacturers. Therefore | 0:31:24 | 0:31:29 | |
Primidos is perhaps different to
some of the others and we demand a | 0:31:29 | 0:31:33 | |
proper enquiry into this and proper
compensation, and the victims are | 0:31:33 | 0:31:38 | |
put at the heart of this enquiry. In
the AWG working group they were | 0:31:38 | 0:31:45 | |
completely ignored in that document
was not worth the paper it was | 0:31:45 | 0:31:48 | |
published on. We may not agree with
everything, but I thank her for her | 0:31:48 | 0:31:55 | |
campaigning and the voice she had
given to thousands of women who | 0:31:55 | 0:31:58 | |
believe they have suffered badly as
a result of Primidos. What I will | 0:31:58 | 0:32:05 | |
say is the things she is asking for
art ruled out. It will create a | 0:32:05 | 0:32:12 | |
process through which someone will
look carefully. She makes some very | 0:32:12 | 0:32:16 | |
serious allegations. That is
absolutely within her right to do so | 0:32:16 | 0:32:22 | |
as a member of this House, but they
are different to the conclusion is | 0:32:22 | 0:32:25 | |
that the expert working group came
to add it's precisely because of | 0:32:25 | 0:32:30 | |
that disagreement that we've asked
Baroness Cumberlege to look at this | 0:32:30 | 0:32:33 | |
and come to her own view is to the
right way forward. I do want to | 0:32:33 | 0:32:38 | |
reassure her that regular tree
failures are at the front of our | 0:32:38 | 0:32:42 | |
minds and we are determined to make
sure that the teams voices are | 0:32:42 | 0:32:45 | |
heard. I wanted that the Minister
for the compassionate tone he had | 0:32:45 | 0:32:52 | |
struck today in understanding the
years that many campaigners like | 0:32:52 | 0:32:58 | |
Janet Williams and Emma Murphy have
undertaken to have their voices | 0:32:58 | 0:33:01 | |
heard is. Going back to the
regulator, if medicines or devices | 0:33:01 | 0:33:08 | |
are found to be unsafe following
this review or have been taken | 0:33:08 | 0:33:13 | |
unsafely, will face legal
consequences, will there be legal | 0:33:13 | 0:33:19 | |
consequences for those regulators
who should have acted differently? | 0:33:19 | 0:33:22 | |
The simple answer is yes, there are
legal consequences for regulators | 0:33:22 | 0:33:28 | |
who have felt. In that case it will
be the responsibility of the | 0:33:28 | 0:33:31 | |
government of the drop companies who
failed in their responsibility to | 0:33:31 | 0:33:37 | |
ensure that patients were informed
of the dangers of taking particular | 0:33:37 | 0:33:40 | |
drugs. It's about expedition facts.
Some of them are clear, some are not | 0:33:40 | 0:33:45 | |
and that's why today's review will
help us. My constituents have been | 0:33:45 | 0:33:54 | |
affected by sodium valproate and
Primidos. The Secretary of State has | 0:33:54 | 0:33:58 | |
already heard my honourable friend's
dismay over the outcome of the | 0:33:58 | 0:34:03 | |
expert working group. What he has
talked about today will not give a | 0:34:03 | 0:34:07 | |
great amount of satisfaction to
people and the confidence in his | 0:34:07 | 0:34:13 | |
department taking notice of Baroness
Cumberlege's review will be reduced | 0:34:13 | 0:34:16 | |
by the written response that I got
yesterday from his department which | 0:34:16 | 0:34:20 | |
said they had no plans to fund
research into hormone pregnancy | 0:34:20 | 0:34:26 | |
tests. A report was produced last
week. Will he ensure that Baroness | 0:34:26 | 0:34:32 | |
Cumberlege looks at this particular
issue? Absolutely she will and I | 0:34:32 | 0:34:37 | |
want to give him that assurance and
I want to say to him that whereas on | 0:34:37 | 0:34:42 | |
something like that operate when it
is clear what the next steps are | 0:34:42 | 0:34:46 | |
because there is no dispute over the
science -- valproate, the first | 0:34:46 | 0:34:54 | |
thing we have to do establish the
truth of the situation and that's | 0:34:54 | 0:34:58 | |
why we're asking Baroness Cumberlege
to look with free hand at the whole | 0:34:58 | 0:35:03 | |
issue. And I welcome this statement
which is consistent with my right | 0:35:03 | 0:35:09 | |
honourable friend's track record as
secretary of state of driving the | 0:35:09 | 0:35:13 | |
NHS to stop causing harm to
patients. Can I ask him to continue | 0:35:13 | 0:35:19 | |
to focus on encouraging, requiring
and supporting or health care | 0:35:19 | 0:35:23 | |
professionals to make the shift from
a defensive mindset to a learning | 0:35:23 | 0:35:27 | |
mindset? And so they listen and
learn, not just from NHS experience, | 0:35:27 | 0:35:37 | |
but from patients? She has huge
experience in health care and she | 0:35:37 | 0:35:40 | |
will know this well. She is
absolutely right to say that at | 0:35:40 | 0:35:44 | |
hearts, what we have to be careful
about in these complex issues is | 0:35:44 | 0:35:49 | |
that we don't inadvertently
encourage a culture of defensive | 0:35:49 | 0:35:53 | |
medicine where doctors feel unable
to be open about mistakes that may | 0:35:53 | 0:35:57 | |
have happened because they are
worried about legal consequences and | 0:35:57 | 0:36:00 | |
then we don't have the learning
which is incredibly important. That | 0:36:00 | 0:36:04 | |
is important and one of the reasons
for this review is to make sure we | 0:36:04 | 0:36:08 | |
support that open learning culture.
Half of my constituents whose | 0:36:08 | 0:36:12 | |
families have suffered due to the
effects of Primidos, can I thank the | 0:36:12 | 0:36:17 | |
Minister for this step in the right
direction statement. By announcing | 0:36:17 | 0:36:20 | |
another review with a remit for
another review, can he reassure the | 0:36:20 | 0:36:26 | |
House that one of these reviews can
investigate the cover-up we know has | 0:36:26 | 0:36:31 | |
occurred over decades over Primidos
and if a crime has been committed, | 0:36:31 | 0:36:35 | |
it will be dealt with? I totally
respect him for airing his | 0:36:35 | 0:36:47 | |
constituentss concerns, but as he
will know from the answers to the | 0:36:47 | 0:36:51 | |
other questions, the difficulties in
the case of Primidos and it is | 0:36:51 | 0:36:55 | |
distressing to families concerned,
is the fact that scientists don't | 0:36:55 | 0:36:59 | |
agree about the issue and so because
of that is, we do unfortunately find | 0:36:59 | 0:37:04 | |
ourselves having to review what has
happened an expert working group was | 0:37:04 | 0:37:10 | |
the first attempt to do that, but we
are going to give Baroness | 0:37:10 | 0:37:15 | |
Cumberlege a free hand to look at
that and any other evidence that | 0:37:15 | 0:37:17 | |
comes to light and draw her own
conclusions. Just an hour ago I was | 0:37:17 | 0:37:23 | |
meeting with my constituents and
Emma Friedman to discuss the next | 0:37:23 | 0:37:31 | |
stage of the campaign for valproate.
From seeing this statement, the | 0:37:31 | 0:37:36 | |
meeting was adjourned. I'm happy
that they are in the Chamber. Can I | 0:37:36 | 0:37:41 | |
ask the Secretary of State whether
it will be possible to ensure that | 0:37:41 | 0:37:45 | |
GP surgeries are giving out the
excellent advice that the MRA che | 0:37:45 | 0:37:55 | |
have put together. Many GPs are not
and there don't seem to be the | 0:37:55 | 0:37:58 | |
regulatory sanctions to make sure
they do. I hope the people he | 0:37:58 | 0:38:02 | |
mentioned are in the gallery rather
than in the Chamber. That will be | 0:38:02 | 0:38:07 | |
greatly reassuring to us and to
them. I can give that assurance. One | 0:38:07 | 0:38:14 | |
of the things we have announced
today is improving a system of | 0:38:14 | 0:38:19 | |
alerting for GP practices and
community pharmacies so that the | 0:38:19 | 0:38:22 | |
right advice is given and so that
the right safeguards are in place so | 0:38:22 | 0:38:30 | |
that people who are pregnant or may
become pregnant don't take this | 0:38:30 | 0:38:33 | |
medicine which is powerful and
effective under the right | 0:38:33 | 0:38:37 | |
circumstances, but incredibly
dangerous in the wrong ones. Whilst | 0:38:37 | 0:38:42 | |
welcoming the intention to look
further at these very concerning | 0:38:42 | 0:38:47 | |
issues, I fear that by putting them
all in one place he may not be | 0:38:47 | 0:38:51 | |
giving sufficient attention to the
Primidos issue which is I think a | 0:38:51 | 0:39:00 | |
scandal of many years standing and I
think the expert working group which | 0:39:00 | 0:39:07 | |
reported recently is not the basis
upon which Baroness Cumberlege or | 0:39:07 | 0:39:12 | |
anybody else should look further at
this matter because it was a | 0:39:12 | 0:39:17 | |
complete whitewash. He needs to
acknowledge that and I think that if | 0:39:17 | 0:39:21 | |
he were to do so that the people
affected by Primidos over the last | 0:39:21 | 0:39:26 | |
40 years and more will feel much
more confident in the process he has | 0:39:26 | 0:39:32 | |
described today in a way -- as a way
in which they may get some | 0:39:32 | 0:39:37 | |
resolution. I understand why she
asked the question in the way she | 0:39:37 | 0:39:42 | |
does, but I would just say to her
that we set up that expert working | 0:39:42 | 0:39:47 | |
group after a lot of very careful
thought because we honestly wanted | 0:39:47 | 0:39:51 | |
to get an answer to the question. We
are faced with a situation where | 0:39:51 | 0:39:55 | |
scientists disagreeing and I think
in that situation it is not right, | 0:39:55 | 0:40:02 | |
it wouldn't be right for me as
Secretary of State to announce a | 0:40:02 | 0:40:05 | |
different scientific view. I think
the right thing to do is to allow | 0:40:05 | 0:40:09 | |
some on the time and space to look
at the issues that she has raised | 0:40:09 | 0:40:12 | |
and that is what Baroness Cumberlege
will do. I have a constituent whose | 0:40:12 | 0:40:19 | |
quality-of-life has been ruined by a
surgical mesh implant. What | 0:40:19 | 0:40:22 | |
reassurance can we have that the
review by Baroness Cumberlege will | 0:40:22 | 0:40:28 | |
make sure that the voice of the
patient is listened to more quickly | 0:40:28 | 0:40:31 | |
so that when things do go wrong we
limit the number of patients who | 0:40:31 | 0:40:36 | |
suffer the type of harm we have
heard about this morning. It's the | 0:40:36 | 0:40:42 | |
right question to ask what we have
put forward in this statement is the | 0:40:42 | 0:40:47 | |
possibility that we need to have a
patient's champion, someone whose | 0:40:47 | 0:40:52 | |
job it is to collect the experiences
and views of patients who think they | 0:40:52 | 0:40:56 | |
may have suffered as a result of
medicine medical devices. We think | 0:40:56 | 0:41:01 | |
that may be a way forward, but we
want Baroness Cumberlege to look at | 0:41:01 | 0:41:06 | |
this in more detail. The central
point is that when there are debates | 0:41:06 | 0:41:10 | |
about the efficacy of medicines or
medical devices, if we are going to | 0:41:10 | 0:41:14 | |
avoid the agony of his constituent,
the patient's voice needs to be as | 0:41:14 | 0:41:21 | |
strong as the clinician's. We are
moving away from what has happened | 0:41:21 | 0:41:30 | |
in the past and this will be a step
in the right direction. Following on | 0:41:30 | 0:41:35 | |
from that point the secretary of
state will know the phrase the | 0:41:35 | 0:41:38 | |
patronising disposition of
unaccountable power which applied in | 0:41:38 | 0:41:44 | |
the Hillsborough family's fight to
get justice and the groups affected | 0:41:44 | 0:41:50 | |
today. Then the Secretary of State
say why it Baroness Cumberlege's | 0:41:50 | 0:41:57 | |
report not bound to come straight to
Parliament Parliament to make a | 0:41:57 | 0:42:01 | |
decision over how patients can
justice faster and quicker than what | 0:42:01 | 0:42:08 | |
has happened in so many cases.
That's came from Bishop James Jones | 0:42:08 | 0:42:22 | |
who spoke about people's voice is
being ignored for too long. This | 0:42:22 | 0:42:27 | |
House will have every opportunity to
debate Baroness Cumberlege's report. | 0:42:27 | 0:42:33 | |
The House will have every
opportunity to listen, make | 0:42:33 | 0:42:38 | |
suggestions for improvements and be
involved at every stage of the | 0:42:38 | 0:42:42 | |
process as we take it forward. | 0:42:42 | 0:42:48 | |
My constituent, Karen, a victim of
surgical mesh, and Angie, a victim | 0:42:48 | 0:42:56 | |
of Primodos, will listen with
interest to what the Minister has | 0:42:56 | 0:43:01 | |
had to settle was a bit since there
are two key issues here apart from | 0:43:01 | 0:43:04 | |
the Cumberlege review. The first is
to ensure that our medics from | 0:43:04 | 0:43:08 | |
medical school up and realise that
they are not Gods, because that is | 0:43:08 | 0:43:14 | |
how many patients feel they are
having to deal with him, and there | 0:43:14 | 0:43:18 | |
are concerns are too easily
dismissed. At least a change from | 0:43:18 | 0:43:21 | |
the bottom-up. Second, on the issue
of private health cover, it involves | 0:43:21 | 0:43:30 | |
patients living in all quarters of
the United Kingdom. How will this | 0:43:30 | 0:43:33 | |
learning and the learning of the
review spread whilst respecting the | 0:43:33 | 0:43:39 | |
devolved assemblies into those
regions throughout the health sector | 0:43:39 | 0:43:42 | |
is not under the control of my right
honourable friend? They are | 0:43:42 | 0:43:46 | |
important points. On the second
point, the spreading of best | 0:43:46 | 0:43:49 | |
practice is central here, so we have
to make sure that we don't just have | 0:43:49 | 0:43:54 | |
a system where we have new Nice
guidelines but that we have | 0:43:54 | 0:43:58 | |
confidence that they are being
implemented across 30,000 GPs, 250 | 0:43:58 | 0:44:04 | |
NHS trusts and so on, and I know
that is something that Baroness | 0:44:04 | 0:44:07 | |
Cumberlege will be thinking about.
For my constituents, Willman... | 0:44:07 | 0:44:16 | |
Wilma and Kerstin, the wait to get
truth and justice on this issue has | 0:44:16 | 0:44:22 | |
been almost unbearable. Whilst I
welcome his candour and his tone, | 0:44:22 | 0:44:27 | |
his actions as outlay today are not
enough. I fear that the Baroness | 0:44:27 | 0:44:31 | |
will be doing her job with one hand
tied behind her back. He said in his | 0:44:31 | 0:44:34 | |
statement, we are not revisiting the
science, and then said later, yet we | 0:44:34 | 0:44:38 | |
need to be led by science. Unless I
miss her, there is a contradiction | 0:44:38 | 0:44:42 | |
there. And he confirmed that the
victims affected by these issues | 0:44:42 | 0:44:46 | |
will be at the heart of this ayes as
will the science, because there has | 0:44:46 | 0:44:52 | |
been an important new study done by
Niall Ferguson which must be | 0:44:52 | 0:44:56 | |
considered in this process in
relation to Primodos. I don't accept | 0:44:56 | 0:45:00 | |
there is a contradiction. We have to
be open to the science and led by it | 0:45:00 | 0:45:05 | |
at every stage of the bid there is
new evidence, we must take that on | 0:45:05 | 0:45:08 | |
board, and always be led by patients
in what we do, and that is exactly | 0:45:08 | 0:45:11 | |
what I am announcing. It was a
pleasure to lead the debate in the | 0:45:11 | 0:45:18 | |
House when we got a backbench
business committee earlier. I really | 0:45:18 | 0:45:24 | |
appreciate the tone from the
Secretary of State and from the | 0:45:24 | 0:45:26 | |
Prime Minister when I asked her
earlier if there was good news. Can | 0:45:26 | 0:45:30 | |
I also pay tribute to the Minister
sitting by his side, our honourable | 0:45:30 | 0:45:36 | |
colleague from Winchester, for the
work he did, because I gave him | 0:45:36 | 0:45:39 | |
quite a hard time during the debate.
However, there will be huge | 0:45:39 | 0:45:44 | |
disappointment with the Primodos
campaign team. Being led by the | 0:45:44 | 0:45:49 | |
science from the expert working
group is fascinating, because they | 0:45:49 | 0:45:52 | |
refused to allow some science to
come forward because it had not been | 0:45:52 | 0:45:55 | |
peer reviewed, then accepted other
evidence from drug companies that | 0:45:55 | 0:45:58 | |
did. This review going back to the
Department of Health is fully | 0:45:58 | 0:46:05 | |
allocated in this in that they were
given out by GPs. This will give no | 0:46:05 | 0:46:09 | |
confidence at all. The Baroness will
have both hands tied behind her | 0:46:09 | 0:46:15 | |
back, I think. You know, I commend
my honourable friend's campaigning, | 0:46:15 | 0:46:21 | |
but I'm afraid I do have to disagree
with him. This is a very important | 0:46:21 | 0:46:25 | |
step forward. We are absolutely
going to be led by the science, and | 0:46:25 | 0:46:30 | |
have to be, and we're giving
Baroness Cumberlege a full rein to | 0:46:30 | 0:46:34 | |
look at what the expert working
group did, and to challenge it if | 0:46:34 | 0:46:37 | |
she sees fit. Is the expert working
group the Government set up on | 0:46:37 | 0:46:45 | |
Primodos changed its own terms of
reference. It refused to look at all | 0:46:45 | 0:46:49 | |
the scientific evidence, and it did
not have the confidence of the | 0:46:49 | 0:46:53 | |
families affected. How will his
proposals be any different? This is | 0:46:53 | 0:47:01 | |
something for Baroness Cumberlege to
consider, but the broader point is | 0:47:01 | 0:47:03 | |
right. We have, for too long, in
each of these three cases and in | 0:47:03 | 0:47:09 | |
others, had processes that have not
had the confidence of patients, and | 0:47:09 | 0:47:13 | |
that is why we are proposing today
not just specific measures in each | 0:47:13 | 0:47:17 | |
of the three issues, but also a
broader look at the regulatory | 0:47:17 | 0:47:20 | |
structure to make sure that
patients' bosses are louder. I | 0:47:20 | 0:47:29 | |
welcome today's announcement, which
I'm sure will be welcomed by my | 0:47:29 | 0:47:33 | |
constituent who had surgical mesh
installed in 2008 during a | 0:47:33 | 0:47:37 | |
hysterectomy, but significantly
without her knowledge or consent, | 0:47:37 | 0:47:40 | |
which has led her to severe distress
and significant pain. When she | 0:47:40 | 0:47:43 | |
raised it with her doctors, she was
told it was all in her mind and she | 0:47:43 | 0:47:47 | |
was imagining it. She believes she
is still not being taken seriously | 0:47:47 | 0:47:51 | |
ten years later. Does the Secretary
of State share my hope that the | 0:47:51 | 0:47:56 | |
existence of the review will
encourage a more sympathetic | 0:47:56 | 0:48:00 | |
response to people such as my
constituent from the medical | 0:48:00 | 0:48:02 | |
profession? I very much hope so. And
I think the crucial point that has | 0:48:02 | 0:48:09 | |
come from members on all sides of
this houses that the processes that | 0:48:09 | 0:48:12 | |
we have had in place to date have
not had the confidence of families | 0:48:12 | 0:48:18 | |
affected. This applies to a whole
range of issues. I believe that | 0:48:18 | 0:48:22 | |
medicine is changing fundamentally.
I think people who are passionate | 0:48:22 | 0:48:26 | |
about medical innovation and life
sciences know that you need to have | 0:48:26 | 0:48:29 | |
a very close partnership with
patients if you're going to make | 0:48:29 | 0:48:33 | |
proper advances. We haven't always
got this right, and that's what I | 0:48:33 | 0:48:36 | |
hope the review will help us to do.
I welcome the audio rhythmic audit | 0:48:36 | 0:48:47 | |
into vaginal mesh. A couple of
things. One of them is the support | 0:48:47 | 0:48:51 | |
for victims. My constituent Angie
has been referred to Manchester to | 0:48:51 | 0:48:57 | |
see somebody, and now she has been
told she will have to wait months | 0:48:57 | 0:48:59 | |
before anybody can properly analyse
what has happened to her, so I | 0:48:59 | 0:49:05 | |
wonder whether more results can be
-- more resource can be given to | 0:49:05 | 0:49:09 | |
help the victims of vaginal mesh
will so can you look into the | 0:49:09 | 0:49:11 | |
licensing process for how these
things get to market and get put out | 0:49:11 | 0:49:15 | |
there for use by surgeons? And
please don't just look into the | 0:49:15 | 0:49:19 | |
training, because I believe it is
not just about training of how we | 0:49:19 | 0:49:21 | |
put these things in. I believe it is
the product itself that is faulty. | 0:49:21 | 0:49:27 | |
We will certainly look at all those
things, and she is absolutely right | 0:49:27 | 0:49:31 | |
to draw attention to them. I
think... The licensing is one thing, | 0:49:31 | 0:49:37 | |
but it is also very important that
we make sure there is proper | 0:49:37 | 0:49:42 | |
information available to clinicians
and patients, because it does appear | 0:49:42 | 0:49:47 | |
from these cases that there are a
number of drugs and devices that are | 0:49:47 | 0:49:51 | |
safe but only in certain
circumstances, and that knowledge | 0:49:51 | 0:49:55 | |
may not have been properly
disseminated. That database that she | 0:49:55 | 0:49:58 | |
talked about will help us in getting
that right. | 0:49:58 | 0:50:10 | |
Mr Speaker, constituents of mine
have... I welcome the statement and | 0:50:12 | 0:50:22 | |
I recognise the issue around the ban
and why that might not be possible, | 0:50:22 | 0:50:25 | |
but can the Secretary of State
assure this House and my | 0:50:25 | 0:50:28 | |
constituents that surgical mesh will
only be used when there is | 0:50:28 | 0:50:31 | |
absolutely no alternative? I think,
you know, this is a... Complex | 0:50:31 | 0:50:39 | |
procedure which can go wrong. It
would only be used if it were | 0:50:39 | 0:50:43 | |
absolutely the right thing for
patients, and we have looked | 0:50:43 | 0:50:48 | |
carefully, because there are other
countries introducing restrictions | 0:50:48 | 0:50:50 | |
on the use of mesh. It means we have
to use much more care in when it is | 0:50:50 | 0:51:00 | |
used to avoid those truly horrific
complications. I think those whose | 0:51:00 | 0:51:09 | |
lives have been forever changed by
the drug Primodos will be very | 0:51:09 | 0:51:13 | |
disappointed today, despite a step
in the right direction, because | 0:51:13 | 0:51:20 | |
asking Lord Shaughnessy to drive
forward recommendations of the | 0:51:20 | 0:51:22 | |
expert working group will not bring
any confidence. That expert working | 0:51:22 | 0:51:27 | |
group changed its terms of
reference. It was asked to examine | 0:51:27 | 0:51:32 | |
whether a possible association
exists between Primodos and birth | 0:51:32 | 0:51:35 | |
defects, and it did not do that. It
looked at a causal association. And | 0:51:35 | 0:51:39 | |
that is the crux of the problem. And
that is what makes that working | 0:51:39 | 0:51:44 | |
group's findings unacceptable. Aside
from the fact that the scientific | 0:51:44 | 0:51:49 | |
evidence not included existed before
they even started their | 0:51:49 | 0:51:52 | |
investigation, so unless these
factors are taken into account, in a | 0:51:52 | 0:51:58 | |
wide-ranging, independent enquiry, I
doubt that those victims will ever | 0:51:58 | 0:52:01 | |
get the satisfaction and the justice
that they deserve. Well, I do hear | 0:52:01 | 0:52:05 | |
what she says, and the reason that
it was important to us to examine | 0:52:05 | 0:52:12 | |
whether there was a causal link is
because that has an impact on | 0:52:12 | 0:52:18 | |
compensation that people might be
entitled to. I would like to | 0:52:18 | 0:52:21 | |
reassure her that Baroness
Cumberlege has the freedom to look | 0:52:21 | 0:52:23 | |
at all the issues she raises. The
pharmaceutical companies have | 0:52:23 | 0:52:28 | |
consistently stated that they refuse
to accept that there is a causal | 0:52:28 | 0:52:36 | |
link between sodium valproate and
autism. The key is that my right | 0:52:36 | 0:52:40 | |
honourable friend has set out now
measures to warn people for the | 0:52:40 | 0:52:44 | |
future, but it doesn't compensate
the victims. So, what a temple will | 0:52:44 | 0:52:48 | |
be made by my right honourable
friend to make sure that victims are | 0:52:48 | 0:52:52 | |
fully compensated for the dreadful
impact on the lives of their | 0:52:52 | 0:52:55 | |
children? You know, this country,
the system we have on compensation | 0:52:55 | 0:53:02 | |
is through the courts, and there are
times when it is the NHS that is | 0:53:02 | 0:53:07 | |
liable, and times when the drug
companies are liable. I hope that | 0:53:07 | 0:53:14 | |
Baroness Cumberlege's work will take
us closer to understanding whether | 0:53:14 | 0:53:17 | |
liability actually lies so that we
can give relief to families who have | 0:53:17 | 0:53:20 | |
suffered for too long. Will the
Secretary of State join me in paying | 0:53:20 | 0:53:26 | |
tribute to my constituents, Emma
Murphy and her colleague Janet | 0:53:26 | 0:53:31 | |
Williams, for their courageous
campaigning to highlight the risks | 0:53:31 | 0:53:35 | |
presented by sodium valproate? As
the right honourable gentleman and | 0:53:35 | 0:53:39 | |
other members have acknowledged,
victims are incredibly suspicious of | 0:53:39 | 0:53:42 | |
the health establishment for very
good reason. So is the Secretary of | 0:53:42 | 0:53:46 | |
State concern, and I ask this
concealer, that Baroness Cumberlege | 0:53:46 | 0:53:50 | |
is the director of a company which
specialises in introducing | 0:53:50 | 0:53:54 | |
pharmaceutical companies into how
they can most effectively lobbied | 0:53:54 | 0:53:58 | |
Parliament? What will that do to
victims who start off being | 0:53:58 | 0:54:01 | |
incredibly suspicious of ourselves
in this House and the NHS | 0:54:01 | 0:54:07 | |
establishment? I would just say
this, and I understand the | 0:54:07 | 0:54:14 | |
respectful tone in which he asks the
question, I don't think Baroness | 0:54:14 | 0:54:22 | |
Cumberlege -- anyone has a better
reputation than Baroness Cumberlege | 0:54:22 | 0:54:25 | |
in this area. She has shown a
willingness to take on the | 0:54:25 | 0:54:30 | |
scientific establishment when it is
the right thing to do, and she does | 0:54:30 | 0:54:33 | |
so with a great deal of knowledge
and passion. I have every confidence | 0:54:33 | 0:54:35 | |
she will do a great job. I welcome
the statement today. Lassie will be | 0:54:35 | 0:54:43 | |
aware, we had a mesh review in
Scotland, but it very quickly lost | 0:54:43 | 0:54:47 | |
the confidence of patient groups,
who branded it a whitewash after | 0:54:47 | 0:54:50 | |
chapters were deleted and evidence
was re-presented, so can he reassure | 0:54:50 | 0:55:00 | |
me that the voices of patients will
be taken seriously and fully into | 0:55:00 | 0:55:04 | |
account? I wish I could say to him
that those terrible, terrible | 0:55:04 | 0:55:13 | |
suffering that people have had has
been taken as seriously as it | 0:55:13 | 0:55:17 | |
should, but I think the truth is
that we have had a system that has | 0:55:17 | 0:55:20 | |
not treated patient concerns as
seriously as they should have been, | 0:55:20 | 0:55:26 | |
and that is why we are making these
important changes we are announcing | 0:55:26 | 0:55:30 | |
today. 44 years ago, my constituent
Leslie Holmes took two Primodos | 0:55:30 | 0:55:37 | |
tablets handed to her by her trusted
GP to check if she was pregnant. She | 0:55:37 | 0:55:42 | |
was, and the consequences for her
son have been devastating. Leslie is | 0:55:42 | 0:55:48 | |
still seeking answers and
recognition of her family's plight. | 0:55:48 | 0:55:52 | |
The minister appears to agree that
we need to recognise that and | 0:55:52 | 0:55:56 | |
provide the answers. How long is it
going to take, and how is he going | 0:55:56 | 0:55:59 | |
to ensure that the outcome is
actually credible this time? All I | 0:55:59 | 0:56:04 | |
can say is that I think that, you
know, we completely understand those | 0:56:04 | 0:56:11 | |
concerns, understand that many
people feel on this issue, but it is | 0:56:11 | 0:56:16 | |
very difficult to resolve quickly
when there is a disagreement amongst | 0:56:16 | 0:56:19 | |
scientists, so what we're trying to
do today is to create a process that | 0:56:19 | 0:56:23 | |
can resolve that this agreement, and
that's what I very much hope will | 0:56:23 | 0:56:27 | |
happen. I welcome this much-needed
safety review announcement. All UK | 0:56:27 | 0:56:33 | |
citizens should be confident that
they are getting the most rigorous | 0:56:33 | 0:56:35 | |
safety standards, but can my right
honourable friend confirmed that the | 0:56:35 | 0:56:41 | |
review will not impact initiatives
such as accelerated access review | 0:56:41 | 0:56:45 | |
and cancer drug fund, which are fast
tracked access to much-needed drugs | 0:56:45 | 0:56:49 | |
and treatments? I can confirm that,
although I think it is also | 0:56:49 | 0:56:53 | |
important to say that if we discover
changes in procedures that will | 0:56:53 | 0:56:59 | |
improve the safety of medicine use
or medical device use, I think that | 0:56:59 | 0:57:03 | |
the people who put those new drugs
onto the market would want to | 0:57:03 | 0:57:07 | |
benefit from any changes in
regulatory processes. We would not | 0:57:07 | 0:57:09 | |
want to reduce the speed. | 0:57:09 | 0:57:13 | |
I welcome this statement. I have
been contacted by many women in my | 0:57:13 | 0:57:20 | |
constituency who continue to suffer
excruciating pain due to surgical | 0:57:20 | 0:57:27 | |
mesh implant. I welcome the
initiatives, but I would suggest | 0:57:27 | 0:57:31 | |
there was a huge value in some of
those initiatives such as a UK wide | 0:57:31 | 0:57:37 | |
database. What discussions will he
have with the ministers regarding | 0:57:37 | 0:57:47 | |
the devolved nations? We are happy
to do anything on a UK wide basis if | 0:57:47 | 0:57:53 | |
that is what the devolved
administrations want because we | 0:57:53 | 0:57:55 | |
don't see any benefit in not sharing
data. If the willingness is there, | 0:57:55 | 0:58:00 | |
we are happy to play ball. Could I
welcome my right honourable friend's | 0:58:00 | 0:58:07 | |
announcement over the review and
securing Baroness Cumberlege to lead | 0:58:07 | 0:58:16 | |
a review. If I could just focus on
Primidos which has affected 1.5 | 0:58:16 | 0:58:23 | |
million women throughout the United
Kingdom. It's been a terrible long | 0:58:23 | 0:58:27 | |
journey for these individuals and
their families. They have been | 0:58:27 | 0:58:32 | |
pursuing truth and justice. Today
they have received neither. I hear | 0:58:32 | 0:58:37 | |
much of the use of and the use of
science in the review, but I wonder | 0:58:37 | 0:58:44 | |
if my honourable friend what are the
baroness to introduce humanity into | 0:58:44 | 0:58:47 | |
that review and take into account
the Peruvian desert at Aberdeen | 0:58:47 | 0:58:53 | |
University that is now available. I
hope this review is a stepping stone | 0:58:53 | 0:58:58 | |
to a full public enquiry for
Primidos victims and maybe then and | 0:58:58 | 0:59:02 | |
only then will they receive the
truth and the justice that they and | 0:59:02 | 0:59:06 | |
their families richly deserve. Very
eloquently put by my honourable | 0:59:06 | 0:59:14 | |
friend. We also want to get closure
on this issue and that means getting | 0:59:14 | 0:59:18 | |
the scientific consensus that has
eluded us today. I will certainly | 0:59:18 | 0:59:24 | |
mention the Aberdeen research to the
noble Baroness. The Secretary of | 0:59:24 | 0:59:28 | |
State was right to say that patient
views have been neglected and they | 0:59:28 | 0:59:31 | |
had to be central to this review. My
constituents impacted by Primidos | 0:59:31 | 0:59:36 | |
lost faith in the working group
because of that concern. How far | 0:59:36 | 0:59:40 | |
will this review go? We look at the
fact that there may be diminished | 0:59:40 | 0:59:48 | |
evidence because of the medical
records that were destroyed? I'm | 0:59:48 | 0:59:55 | |
happy to do so, but this review is
separate to things that are | 0:59:55 | 0:59:58 | |
happening in Scotland, but we will
certainly look at all those issues. | 0:59:58 | 1:00:02 | |
This is the first chance I've had to
thank the Secretary of State for | 1:00:02 | 1:00:07 | |
visiting Kettering General Hospital
last week. I do so now. It is | 1:00:07 | 1:00:11 | |
laudable that the NHS be the safest
health care system. Are we there | 1:00:11 | 1:00:17 | |
yet? If not, when will we be?
International experts from the | 1:00:17 | 1:00:24 | |
Commonwealth fund in New York say we
are the safest health care system in | 1:00:24 | 1:00:28 | |
the world. That does give me pause
for thought because there is so much | 1:00:28 | 1:00:33 | |
avoidable harm and death in our
system right now and if we are the | 1:00:33 | 1:00:36 | |
safest it says that health care
everywhere needs to improve. | 1:00:36 | 1:00:42 | |
Campaigners on Primidos will be
disappointed by the Secretary of | 1:00:42 | 1:00:46 | |
State's statement and his failure to
recognise the concerns they have | 1:00:46 | 1:00:50 | |
raised about the expert working
group. That aside, how many patients | 1:00:50 | 1:00:54 | |
will be involved in the review and
how does he believe that they will | 1:00:54 | 1:00:59 | |
be best access so that people have
their voices heard? That's the | 1:00:59 | 1:01:04 | |
entire purpose of the review.
Baroness Cumberlege will want to | 1:01:04 | 1:01:08 | |
involve patients right from the
start in that process, but I will | 1:01:08 | 1:01:13 | |
talk to her about it and I will
write to her just spelt out in | 1:01:13 | 1:01:17 | |
detail way that patients will be
involved in the process. I found the | 1:01:17 | 1:01:24 | |
secretary of state for his statement
that will be of comfort to the | 1:01:24 | 1:01:33 | |
victims of vaginal mesh. Can he
confirmed the review will cover | 1:01:33 | 1:01:36 | |
looking at whether those who have
been barred from getting | 1:01:36 | 1:01:39 | |
compensation due to the statute of
limitations will be included in this | 1:01:39 | 1:01:44 | |
review? Absolutely. The Secretary of
State will be aware that for many of | 1:01:44 | 1:01:52 | |
the women who took Primidos they
would not even necessarily have | 1:01:52 | 1:01:56 | |
known at the time that that was the
consequence. It's only later on and | 1:01:56 | 1:02:05 | |
it totally that they have realised
what took place. How would they be | 1:02:05 | 1:02:10 | |
brought into this enquiry and if
there is going to be compensation, | 1:02:10 | 1:02:13 | |
what will be the test? It will be
unfair for them to have to prove | 1:02:13 | 1:02:18 | |
that they are victims of the drug. I
wish there was a straightforward | 1:02:18 | 1:02:22 | |
answer, but the truth is there is a
lot of scientific disagreement about | 1:02:22 | 1:02:25 | |
whether there is a causal link or
not which makes it difficult to give | 1:02:25 | 1:02:29 | |
clear answers to his constituents,
as indeed to mind, but I hope this | 1:02:29 | 1:02:34 | |
review will shed some clarity on
that situation because I know that's | 1:02:34 | 1:02:38 | |
what a lot of people want. What
advice has the Secretary of State | 1:02:38 | 1:02:47 | |
sought from the Royal College of
midwives, the Royal Institute of | 1:02:47 | 1:02:51 | |
gynaecology and what input will be
these bodies have in this review? | 1:02:51 | 1:02:56 | |
The noble Baroness Cumberlege is an
honorary fellow at the Royal College | 1:02:56 | 1:03:07 | |
of Nursing and physicians, so she is
well connected with the | 1:03:07 | 1:03:10 | |
organisations that the honourable
lady has mentioned. As the Secretary | 1:03:10 | 1:03:17 | |
of State has indicated our products
are world leading. Does the Minister | 1:03:17 | 1:03:25 | |
have any more information that our
expertise will have as little red | 1:03:25 | 1:03:35 | |
tape as possible? It's fair to say
that our revelatory system is | 1:03:35 | 1:03:39 | |
admired the world over because we do
safety extremely well and we | 1:03:39 | 1:03:45 | |
extremely seriously, but it does not
mean that we cannot improve it and | 1:03:45 | 1:03:48 | |
the lesson for today is that
patients voices have not been strong | 1:03:48 | 1:03:52 | |
enough in that process and that is
what we need to change. I am most | 1:03:52 | 1:03:59 | |
grateful to be secretary of state.
We come now to the ten minute rule | 1:03:59 | 1:04:05 | |
motion. Thank you Mr Speaker. I beg
to move that lead be given to | 1:04:05 | 1:04:12 | |
bringing about to make provision
about shared parental leave and pay | 1:04:12 | 1:04:17 | |
for workers including those that are
self-employed. I would like to begin | 1:04:17 | 1:04:22 | |
by paying tribute to those who have
been campaigning for the provisions | 1:04:22 | 1:04:26 | |
called for in this bill. I would not
be presenting it here today if it | 1:04:26 | 1:04:30 | |
was not for their work and
dedication in pushing shared | 1:04:30 | 1:04:34 | |
parental leave for all onto the
agenda. UK music, equity, parental | 1:04:34 | 1:04:39 | |
pay quality, PNG, writers Guild,
GMB, TUC are many more. The | 1:04:39 | 1:04:51 | |
self-employed are not clustered
around the creative industries. The | 1:04:51 | 1:04:54 | |
whole world of work is changing.
More and more people are classed as | 1:04:54 | 1:05:01 | |
freelance or self-employed. | 1:05:01 | 1:05:11 | |
Literally anyone can be
self-employed. But 9% of women and | 1:05:13 | 1:05:19 | |
60% of men aren't eligible for
shared parental pay because they are | 1:05:19 | 1:05:24 | |
self-employed. There are 24,000
self-employed mums claiming | 1:05:24 | 1:05:28 | |
maternity allowance who would
benefit from this bill. What is | 1:05:28 | 1:05:32 | |
encouraging is that the government
no shared parental leave is | 1:05:32 | 1:05:38 | |
important. It was a positive and
radical step introduced by the | 1:05:38 | 1:05:43 | |
coalition government in 2015. Sadly
not enough families are taking the | 1:05:43 | 1:05:46 | |
opportunity because where many
employers have enhanced maternity | 1:05:46 | 1:05:49 | |
schemes for most employees such
schemes don't exist for shared | 1:05:49 | 1:05:54 | |
parental leave meaning many families
will be worse off if they signed up | 1:05:54 | 1:05:58 | |
to it. And for most keeping the
family finances in the black is a | 1:05:58 | 1:06:04 | |
priority. So it was good to see last
week the government roll-out their | 1:06:04 | 1:06:09 | |
advertising campaign share the joy
to get more doubts to take up their | 1:06:09 | 1:06:13 | |
entitlement. A welcome push when
only a disappointing 2% of employees | 1:06:13 | 1:06:18 | |
take shared parental leave.
Unfortunately be problems around | 1:06:18 | 1:06:21 | |
take-up will never be clearer than
when the minister responsible for | 1:06:21 | 1:06:26 | |
shared parental leave revealed that
he was in fact as a minister not | 1:06:26 | 1:06:34 | |
eligible. I don't mention this to
embarrass the member in any way but | 1:06:34 | 1:06:38 | |
simply to use it as an example of
how the culture around shared leave | 1:06:38 | 1:06:42 | |
needs to change. To do that we need
to give more people more choice. | 1:06:42 | 1:06:49 | |
Parity between the traditionally
employed and the self-employed and | 1:06:49 | 1:06:52 | |
this bill would do just that.
Currently self-employed mums who | 1:06:52 | 1:06:58 | |
have given birth must take their
statutory maternity allowance in one | 1:06:58 | 1:07:02 | |
go. They can't return to work for a
month or two and then resumed there | 1:07:02 | 1:07:06 | |
allowance. My bill would allow
freelance partners to decide who | 1:07:06 | 1:07:11 | |
receives the alarm on so mum can
take a block when she is ready and | 1:07:11 | 1:07:14 | |
wants to re-enter the workplace
while the family still receives the | 1:07:14 | 1:07:17 | |
regular income from the maternity
allowance. A simpler way of | 1:07:17 | 1:07:24 | |
replicating shared parental leave
for freelancers at no extra cost to | 1:07:24 | 1:07:27 | |
the taxpayer. A move which I think
will send a strong message to the | 1:07:27 | 1:07:31 | |
country that not only do we
understand the changing face of work | 1:07:31 | 1:07:35 | |
but we believe that men and women
are valued equally in the home and | 1:07:35 | 1:07:38 | |
the workplace. I'd also say to
ministers that if the policy was | 1:07:38 | 1:07:44 | |
extended to the self-employed
freelancers, I believe there would | 1:07:44 | 1:07:47 | |
not be any problem with poor
take-up. A survey conducted by | 1:07:47 | 1:07:52 | |
parental pay quality found over 70%
of freelancers or those with | 1:07:52 | 1:07:57 | |
freelance partners would use the
scheme if it were available for them | 1:07:57 | 1:08:02 | |
in the future. A change to our
cultural norms does not happen | 1:08:02 | 1:08:08 | |
overnight, but I believe the
self-employed can blaze a trail in | 1:08:08 | 1:08:10 | |
leading the way, helping us to get
to a place where it is assumed that | 1:08:10 | 1:08:17 | |
partners and should shoulder a
significant amount of the childcare. | 1:08:17 | 1:08:22 | |
If the numbers of freelancers that
will take up shared parental leave | 1:08:22 | 1:08:27 | |
as significant, why are we holding
back? For those not owe favoured | 1:08:27 | 1:08:30 | |
walls around parental leave for the
self-employed, a self-employed mum | 1:08:30 | 1:08:38 | |
is entitled to £140 maternity
allowance for 39 weeks if they have | 1:08:38 | 1:08:44 | |
paid close to national insurance for
at least 13 of the 66 weeks before | 1:08:44 | 1:08:48 | |
the baby is due. Maternity allowance
is paid only two months. If that is | 1:08:48 | 1:08:54 | |
withdrawn, if the... That is
withdrawn if the freelance mother | 1:08:54 | 1:09:03 | |
does more than the ten keeping in
touch days. For example, if | 1:09:03 | 1:09:09 | |
freelance chiropodist took a job
that lasted for ten days, she would | 1:09:09 | 1:09:11 | |
lose in red -- maternity allowance,
but a chiropodist who is employed | 1:09:11 | 1:09:22 | |
can work freelance as long as she
does not break the terms of her | 1:09:22 | 1:09:28 | |
contract. It's far from ideal and a
Catch-22 position for self-employed | 1:09:28 | 1:09:33 | |
women. Stay off work and keep the
elements for the 39 weeks or take | 1:09:33 | 1:09:38 | |
the risk of taking a one off job. A
stressful decision for anyone, let | 1:09:38 | 1:09:45 | |
alone a sleek diff riv new mum. With
95% of new businesses run by women, | 1:09:45 | 1:09:52 | |
we know there are many families out
there who might benefit from sharing | 1:09:52 | 1:09:56 | |
paternal leave. So why is it
important we do this now. -- let | 1:09:56 | 1:10:06 | |
alone a sleep deprived ma'am. We
know that at least 4.7 million | 1:10:06 | 1:10:10 | |
people are employed in freelance
work. The government says it will | 1:10:10 | 1:10:18 | |
tackle the insecurity that this
creates. Self-employment and the gig | 1:10:18 | 1:10:26 | |
economy has recently been the
subject of the Taylor review and | 1:10:26 | 1:10:30 | |
after Matthew Taylor hurt I was
submissions and many detailed | 1:10:30 | 1:10:35 | |
recommendations, he conceded that
the government should address, and I | 1:10:35 | 1:10:40 | |
quote, parental leave in particular
where self-employed people lose out. | 1:10:40 | 1:10:44 | |
This is our chance to get it on the
agenda because freelance | 1:10:44 | 1:10:50 | |
self-employed and insecure work is
not new. It has been the feature of | 1:10:50 | 1:10:54 | |
creative industries for decades. 44%
of the creative industries are | 1:10:54 | 1:11:02 | |
unemployed. I worked in it for over
30 years and my partner still does. | 1:11:02 | 1:11:07 | |
Working hours are flexible with
project based employment and | 1:11:07 | 1:11:12 | |
irregular and often unreliable
payments. No nine to five, very | 1:11:12 | 1:11:18 | |
little stability. Looking for work
can take up as much time as doing | 1:11:18 | 1:11:22 | |
the job, but today the working
patterns and insecurities of the | 1:11:22 | 1:11:27 | |
creative industries aren't an
anomaly, they are becoming the norm | 1:11:27 | 1:11:30 | |
and for any freelance coupled the
idea of starting a family can be | 1:11:30 | 1:11:35 | |
terrifying. Another mouth to feed,
no guarantee of work. Obviously for | 1:11:35 | 1:11:39 | |
any new parent money is tight, but
for those in the gig economy or | 1:11:39 | 1:11:45 | |
insecure work it is even more so.
Employing 2 million people the | 1:11:45 | 1:11:49 | |
creative industries are a success
story, but areas of improvement | 1:11:49 | 1:11:53 | |
remain. More often than not it's the
woman who compromises on her career | 1:11:53 | 1:11:58 | |
to bring up of delete-macro a
family. She is the one that steps | 1:11:58 | 1:12:05 | |
out of the industry because two
freelancers can't make a finances | 1:12:05 | 1:12:10 | |
work, or went back up work, she is
expected to dash home early one | 1:12:10 | 1:12:18 | |
childcare bourse room or to look
after sick children. Women still | 1:12:18 | 1:12:25 | |
lagged behind men or so when they
are dishing out the gongs. | 1:12:25 | 1:12:39 | |
74% of creative workers surveyed in
the film industry turn down work | 1:12:39 | 1:12:42 | |
because they are parents. 22% said
they career had come to a halt. | 1:12:42 | 1:12:46 | |
Altogether once they had a child.
All that talent, all that training, | 1:12:46 | 1:12:51 | |
dedication, lost because there is
not enough support for self-employed | 1:12:51 | 1:12:55 | |
families with young children. So we
need to change the culture, and to | 1:12:55 | 1:13:01 | |
do it we need to start right at the
beginning when the baby is born. As | 1:13:01 | 1:13:05 | |
I mentioned at the beginning of this
speech, and I know how much the | 1:13:05 | 1:13:10 | |
Treasury bench appreciates a good
deal, so what I'm proposing comes at | 1:13:10 | 1:13:17 | |
no extra cost to the taxpayer.
Maternity allowances already paid to | 1:13:17 | 1:13:22 | |
new mothers. It is a win-win for the
Treasury. It also means men having | 1:13:22 | 1:13:27 | |
more of a chance to spend time with
their babies, allowing women to pick | 1:13:27 | 1:13:31 | |
up opportunities as they present
themselves. And although I | 1:13:31 | 1:13:36 | |
personally believe that the amount
of the allowance should be | 1:13:36 | 1:13:39 | |
increased, this bill isn't about
that. This bill is simply to give | 1:13:39 | 1:13:45 | |
freelancers and the self-employed
the right to share the current | 1:13:45 | 1:13:47 | |
allowance. So, the Bill I put
forward today is simple but | 1:13:47 | 1:13:53 | |
significant. It allows maternity
allowance to be shared in blocks | 1:13:53 | 1:13:57 | |
between freelance parents,
replicating the way shared parental | 1:13:57 | 1:14:00 | |
leave works for those in more
conventional employment. It's fair, | 1:14:00 | 1:14:05 | |
it's progressive, it's a bill to
complement current government | 1:14:05 | 1:14:09 | |
policy, not disturb it. Help close
the gender pay gap, proving to the | 1:14:09 | 1:14:13 | |
world Britain's serious. I commend
this bill to the House. The question | 1:14:13 | 1:14:17 | |
is at the honourable member have
leave to bring in the Bill. I think | 1:14:17 | 1:14:23 | |
the ayes have it, the ayes have it.
Who will prepare and bring in the | 1:14:23 | 1:14:27 | |
Bill? Mrs Maria Miller, Mr Ed
Vaizey, Alison Pulis, Caroline | 1:14:27 | 1:14:33 | |
Lucas, Jo Swinson, Tom Watson, Kevin
Brennan, Emma Reynolds, Luciano | 1:14:33 | 1:14:39 | |
Burge, Rachel Reeves, Rebecca Long
Bailey and myself, Sir. | 1:14:39 | 1:14:43 | |
Tracey | 1:14:52 | 1:14:59 | |
Shared parental leave and allowance
Bill. Second reading what day? Me | 1:15:14 | 1:15:26 | |
the 11th. We come now to the
programme motion. The Minister to | 1:15:26 | 1:15:34 | |
move? The question is the finance
never to build programme and two | 1:15:34 | 1:15:37 | |
hours on the order paper. Do you
wish to speak? The honourable lady | 1:15:37 | 1:15:44 | |
wishes to speak. Thank you, Mr
Speaker. I stand to speak to new | 1:15:44 | 1:15:53 | |
clause nine... The honourable
programme motion? The lady doesn't | 1:15:53 | 1:16:01 | |
wish to debate? The ayes have it,
the ayes have it. Order, the clerk | 1:16:01 | 1:16:07 | |
will now proceed to read the orders
of the day. Finance never to bill as | 1:16:07 | 1:16:12 | |
amended in upon the Bill committee
to be considered. The Whip says now. | 1:16:12 | 1:16:22 | |
We begin with new clause nine to
move the motion I call Don Butler. | 1:16:22 | 1:16:29 | |
Thank you, Mr Speaker. I now rise to
speak to new clause nine which | 1:16:29 | 1:16:33 | |
stands in the name of my right
honourable friend the leader of the | 1:16:33 | 1:16:37 | |
and other honourable friends. Mr
Speaker, I would like to thank the | 1:16:37 | 1:16:41 | |
previous Minister for women and
equality is, the Member for Putney, | 1:16:41 | 1:16:47 | |
for the equality impact assessment
response sent to me just before | 1:16:47 | 1:16:50 | |
Christmas. The honourable member's
responses are normally quite upbeat. | 1:16:50 | 1:16:55 | |
I must say, Mr Speaker, but I found
this particular response a little | 1:16:55 | 1:16:59 | |
lacklustre. But it definitely
highlighted why we need to support | 1:16:59 | 1:17:05 | |
new clause nine. The letter
highlights the weaknesses of due | 1:17:05 | 1:17:10 | |
regard, and goes on to make a
somewhat puzzling statement, and I | 1:17:10 | 1:17:14 | |
quote. All departments carefully
consider the equality impacts of | 1:17:14 | 1:17:19 | |
individual policy decisions taken on
by those protected characteristics | 1:17:19 | 1:17:23 | |
in line with our legal obligations
and our clear commitment to quality | 1:17:23 | 1:17:27 | |
issues. And therein lies the
problem. This Government has not | 1:17:27 | 1:17:30 | |
shown a clear commitment to equality
issues, far from it. With 86% of the | 1:17:30 | 1:17:37 | |
cuts falling on the shoulders of
women, and black and Asian minority | 1:17:37 | 1:17:44 | |
and disabled people suffering more
than any other group, I find it hard | 1:17:44 | 1:17:48 | |
to understand why the Government
would try to proclaim that they are | 1:17:48 | 1:17:52 | |
committed to equality is. Mr
Speaker... Sure. I thank a forgiving | 1:17:52 | 1:18:00 | |
way. She mentions the Government has
not made commitment. Does she not | 1:18:00 | 1:18:04 | |
agree with me the compelling
companies in our country to publish | 1:18:04 | 1:18:07 | |
the gender pay gap information, the
first time any Government has done | 1:18:07 | 1:18:11 | |
this, is a very clear signal and
already making real change for those | 1:18:11 | 1:18:14 | |
women working in those companies? I
thank the Member for her | 1:18:14 | 1:18:19 | |
intervention. I do agree that it is
good to get companies to publish | 1:18:19 | 1:18:24 | |
their pay gap. The problem is that
there isn't actually any teeth if | 1:18:24 | 1:18:29 | |
they fail to do so. And that is a
real problem that needs to be | 1:18:29 | 1:18:33 | |
addressed. We need to really tackle
the gender pay gap, but also of | 1:18:33 | 1:18:38 | |
companies fail to address the pay
gap that there needs to be some | 1:18:38 | 1:18:44 | |
punishment for that almost, and that
is unfortunately failing in the | 1:18:44 | 1:18:49 | |
Government's plan. I will give way.
I thank the Lady forgiving way. Do | 1:18:49 | 1:18:56 | |
she recognise that voluntary schemes
of publication, whether it is | 1:18:56 | 1:19:01 | |
participation, as demonstrated in
the Crossrail project, showed that | 1:19:01 | 1:19:04 | |
companies will comply through social
pressure, because actually there is | 1:19:04 | 1:19:07 | |
a brand equity question. You don't
need to have a hard punishment, | 1:19:07 | 1:19:12 | |
through brand equity reputation,
that would be punishment enough they | 1:19:12 | 1:19:15 | |
fail to comply. Again, the problem
is that there are very few companies | 1:19:15 | 1:19:21 | |
who have actually published, and I
think the deadline is quickly | 1:19:21 | 1:19:26 | |
approaching. Mr Speaker, the letter
that I was sent from the Minister | 1:19:26 | 1:19:31 | |
goes on to say that the Treasury
would have completed a cumulative | 1:19:31 | 1:19:39 | |
impact assessment. I have yet to
receive confirmation of this | 1:19:39 | 1:19:43 | |
cumulative impact assessment, and I
wonder whether the Minister would be | 1:19:43 | 1:19:48 | |
able to confirm that, and also
whether we can see a copy of that | 1:19:48 | 1:19:52 | |
laid before the House in the
library. I know that it is difficult | 1:19:52 | 1:19:56 | |
for the Government to often hear the
views of the opposition, so I urge | 1:19:56 | 1:20:00 | |
the Government to the voices of the
members from his own side, like the | 1:20:00 | 1:20:06 | |
honourable member who was chair of
the Treasury select committee. The | 1:20:06 | 1:20:10 | |
committee are obviously a little bit
perplexed at the lack of commitment | 1:20:10 | 1:20:13 | |
to equality impact assessment, and
the Chancellor had complained about | 1:20:13 | 1:20:18 | |
the kind of data that was gathered,
but when the Chancellor was asked | 1:20:18 | 1:20:23 | |
whether he had asked the Office for
National Statistics about the | 1:20:23 | 1:20:26 | |
gathering of that data, he replied
that he had not, and that doesn't | 1:20:26 | 1:20:33 | |
show a commitment to equality. The
Treasury committee also goes on to | 1:20:33 | 1:20:36 | |
say that the Treasury should use the
OMS, HMRC data to produce robust | 1:20:36 | 1:20:45 | |
assessments of future prospects,
including tax and welfare measures | 1:20:45 | 1:20:48 | |
within them, a deficiency of data in
respect of some protective | 1:20:48 | 1:20:52 | |
characteristics is not a reason for
failing to produce an analysis in | 1:20:52 | 1:20:56 | |
respect of others for which data is
available. Nor should the risk of | 1:20:56 | 1:21:05 | |
misinterpretation or methodological
complexity preclude the publication | 1:21:05 | 1:21:07 | |
of an equality impact assessment. In
short, Mr Speaker, just do it. Mr | 1:21:07 | 1:21:15 | |
Speaker, the only reference in the
budget to gender impact which has | 1:21:15 | 1:21:19 | |
been identified as when it
disproportionately affected men. | 1:21:19 | 1:21:22 | |
What possible reason could this be,
I wonder. I understand that the | 1:21:22 | 1:21:28 | |
Treasury committee would welcome an
explanation on the thinking of this | 1:21:28 | 1:21:31 | |
from the Government. So would we. It
does not make sense that the | 1:21:31 | 1:21:37 | |
Chancellor alluded to the fact that
Ministers see the equality impact | 1:21:37 | 1:21:43 | |
assessment for the Department
because it makes me wonder if | 1:21:43 | 1:21:47 | |
Ministers see them, if Ministers
read them, if Ministers actually | 1:21:47 | 1:21:51 | |
have proper due regard to them, why
would they implement the policies | 1:21:51 | 1:21:56 | |
that they do? If the Government
fails to support this clause, there | 1:21:56 | 1:22:01 | |
could be no public confidence that
the Government's commitment to | 1:22:01 | 1:22:06 | |
protect, not punish people with
protective characteristics. For the | 1:22:06 | 1:22:11 | |
record, Mr Speaker, the nine
protective characteristics are age, | 1:22:11 | 1:22:16 | |
disability, gender reassignment,
pregnancy, maternity, race, religion | 1:22:16 | 1:22:21 | |
or belief, sex and sexual
orientation. I understand that the | 1:22:21 | 1:22:26 | |
Prime Minister is a little bit
preoccupied. She is a little bit | 1:22:26 | 1:22:29 | |
weak at the moment, and I know that
she is dealing with a very serious | 1:22:29 | 1:22:33 | |
ransom note at the moment. But I
honestly believe that she would not | 1:22:33 | 1:22:37 | |
be pleased that her legacy will be
that of the hindering of women and | 1:22:37 | 1:22:41 | |
their life chances. More children
are homeless, more children are | 1:22:41 | 1:22:50 | |
homeless or living in temporary
accommodation than at any other time | 1:22:50 | 1:22:56 | |
since the 2007/ financial crash.
Shelter says that homelessness is a | 1:22:56 | 1:23:02 | |
national scandal. It estimates that
140 families become homeless every | 1:23:02 | 1:23:08 | |
single day, and the estimate of
rough sleeping shows an increase of | 1:23:08 | 1:23:13 | |
130%. Everyday we see and hear the
damaging effects of this | 1:23:13 | 1:23:16 | |
Government's policies have other
people, especially those with | 1:23:16 | 1:23:20 | |
protective characteristics. This
Government is damaging not | 1:23:20 | 1:23:23 | |
protecting vulnerable groups. Even
when the Government conduct an | 1:23:23 | 1:23:26 | |
equality impact assessment, it seems
to ignore it. Just two weeks ago, | 1:23:26 | 1:23:31 | |
the Government released an equality
impact assessment revealing that | 1:23:31 | 1:23:33 | |
more bursaries will be axed from
around a thousand nurses who enter | 1:23:33 | 1:23:37 | |
the profession each year. Assessment
reveals that the latest disco nation | 1:23:37 | 1:23:45 | |
was against those of ethnic
minorities and poorer backgrounds. | 1:23:45 | 1:23:48 | |
We need a Prime Minister who cares
enough to start laying the | 1:23:48 | 1:23:52 | |
foundations for which we can bring
about true equality for women, | 1:23:52 | 1:23:58 | |
diverse communities, LGBT plus
communities and those with | 1:23:58 | 1:24:01 | |
protective characteristics. A Labour
government led by Jeremy Corbyn | 1:24:01 | 1:24:04 | |
would do just that. A Labour
government's successes would be | 1:24:04 | 1:24:09 | |
measured by how it reduces
inequality. The next Labour | 1:24:09 | 1:24:13 | |
government with an sure that we
publish equality impact assessment, | 1:24:13 | 1:24:18 | |
and we conduct equality impact
assessments before implementation of | 1:24:18 | 1:24:21 | |
policies. And then a Labour
Government would have | 1:24:21 | 1:24:25 | |
post-legislative scrutiny to
ascertain whether policies are | 1:24:25 | 1:24:27 | |
making the situation better or
worse. The labour we will enable us | 1:24:27 | 1:24:31 | |
to truly build an economy for the
many and not the few. If the | 1:24:31 | 1:24:35 | |
Government fails to support this
very reasonable amendment, more | 1:24:35 | 1:24:41 | |
people will question... I'm just at
the end, I'm afraid. If the | 1:24:41 | 1:24:47 | |
Government fails to support this
very reasonable amendment, more and | 1:24:47 | 1:24:51 | |
more people will begin to question
why this Government is so intent on | 1:24:51 | 1:24:54 | |
harming not hindering women and
those with protective | 1:24:54 | 1:24:59 | |
characteristics as opposed to
helping them. Equality impact | 1:24:59 | 1:25:06 | |
analysis of various parts of this
act. Should new clause nine B read a | 1:25:06 | 1:25:13 | |
second time? Minister? I hadn't seen
the honourable lady standing. That | 1:25:13 | 1:25:23 | |
was my error. Thank you very much,
Mr Speaker. It was a pleasure to | 1:25:23 | 1:25:27 | |
take part in the final day of debate
on this Finance Bill. We have had a | 1:25:27 | 1:25:32 | |
lot of debate, myself and the Member
for Oxford East and the Minister | 1:25:32 | 1:25:38 | |
have spent quite a lot of time
together in the committee room, not | 1:25:38 | 1:25:41 | |
just on this but also on the customs
bill that has been passing, so it is | 1:25:41 | 1:25:46 | |
good to be here again in order to
talk about this, and actually I | 1:25:46 | 1:25:49 | |
think it is a great way to start
talking about equalities, and | 1:25:49 | 1:25:53 | |
particularly around the new clause
that is being put forward by the | 1:25:53 | 1:25:57 | |
Labour bench of the Shadow Minister.
I think this is incredibly | 1:25:57 | 1:26:01 | |
important, because the way that the
Government and the way that previous | 1:26:01 | 1:26:07 | |
governments at Westminster have done
budget has not been particularly | 1:26:07 | 1:26:12 | |
transparent, and has not ended in a
situation where people know what the | 1:26:12 | 1:26:15 | |
effects of all of the policies will
be as they come through. I have said | 1:26:15 | 1:26:19 | |
before and I still believe that this
is a very, very good amendment, this | 1:26:19 | 1:26:24 | |
new clause, and I'm delighted to
stand on the half of the SNP and | 1:26:24 | 1:26:27 | |
support this new clause as it goes
forward. I just want to highlight a | 1:26:27 | 1:26:31 | |
number of things within it, as well
as some genuine comments around the | 1:26:31 | 1:26:35 | |
transparency and the processes that
the Government uses in order to | 1:26:35 | 1:26:44 | |
create budget and make tax law in
general. The amendment itself talks | 1:26:44 | 1:26:47 | |
about various things, including the
protective characteristics, looking | 1:26:47 | 1:26:51 | |
at the view and impact analysis on
the basis of different protective | 1:26:51 | 1:26:56 | |
characteristics. Just to focus in on
one of those, the issue of age I | 1:26:56 | 1:27:01 | |
think is incredibly important. A
number of decisions that the | 1:27:01 | 1:27:04 | |
Government makes around tax policy
have a differential impact on those | 1:27:04 | 1:27:07 | |
people of different ages, we have
spoken before in this chamber on a | 1:27:07 | 1:27:11 | |
number of occasions about the
generational divide that there is. | 1:27:11 | 1:27:14 | |
We are seeing generation rent, those
people that are millennials or | 1:27:14 | 1:27:18 | |
younger than that facing a very
different housing situation to those | 1:27:18 | 1:27:23 | |
people in generations that came
before, and therefore any tax | 1:27:23 | 1:27:27 | |
changes that happen affect that
group of people differently to how | 1:27:27 | 1:27:40 | |
they affected the previous
generation when they were the same | 1:27:56 | 1:27:58 | |
age, so I think it would be really
important for any analysis was | 1:27:58 | 1:28:01 | |
undertaken by the Government to look
at the generational divide, to look | 1:28:01 | 1:28:03 | |
at the impact on not just that group
of millennials and younger, but on | 1:28:03 | 1:28:06 | |
those people that are of state
pension age as well and to look at | 1:28:06 | 1:28:09 | |
the impact on them of any changes to
taxes that are coming through. | 1:28:09 | 1:28:11 | |
Looking specifically at other
things, the honourable member | 1:28:11 | 1:28:13 | |
mentioned issues around women, and
it is clear that there is still a | 1:28:13 | 1:28:15 | |
gender pay gap, and companies have
got to publish this information and | 1:28:15 | 1:28:18 | |
I think that is really important,
but actually, the obligation is that | 1:28:18 | 1:28:20 | |
I have seen thus far from companies
have caused me more concern than the | 1:28:20 | 1:28:23 | |
situation that was previously in. We
saw one company recently produce a | 1:28:23 | 1:28:25 | |
gender pay report that really stated
that men in their organisation were | 1:28:25 | 1:28:31 | |
paid significantly more than women,
and they said it wasn't an equal pay | 1:28:31 | 1:28:34 | |
issue, because the men were
overwhelmingly doing higher paid | 1:28:34 | 1:28:38 | |
jobs, it was an a travel company,
they were pilots, whereas women | 1:28:38 | 1:28:47 | |
95% of their pilots were men and
over 85% of their cabin crew were | 1:28:47 | 1:28:54 | |
women. That is still a major issue
because it means that women are | 1:28:54 | 1:28:58 | |
finding it very difficult to become
pilots and men are not finding it | 1:28:58 | 1:29:01 | |
that easy to become cabin crew
either, so the real issue here, and | 1:29:01 | 1:29:06 | |
even though this data has been
published which I do welcome, it has | 1:29:06 | 1:29:10 | |
highlighted institutional issues
which there are as well as issues | 1:29:10 | 1:29:15 | |
around equal pay. So any impact
analysis the Government does need to | 1:29:15 | 1:29:20 | |
take into account all of these
things. Some of these decisions the | 1:29:20 | 1:29:26 | |
Government has taken previously,
such as the changes around the | 1:29:26 | 1:29:30 | |
marriage allowance, and I do welcome
the proposals made to that in this | 1:29:30 | 1:29:34 | |
Finance Bill, however, the creation
of the marriage allowance is | 1:29:34 | 1:29:40 | |
something that disproportionately
has a negative impact on single | 1:29:40 | 1:29:47 | |
female parents, actually. That is a
concern for the SNP with issues | 1:29:47 | 1:29:52 | |
around the idea of a marriage
allowance and we don't think it is | 1:29:52 | 1:29:55 | |
something which has been properly
thought through because of the lack | 1:29:55 | 1:29:58 | |
of fairness in the system. She's
making a very good point on the | 1:29:58 | 1:30:05 | |
marriage allowance as ever and it
creates an inequality that I is a | 1:30:05 | 1:30:11 | |
married woman suddenly get this
advantage over an unmarried person, | 1:30:11 | 1:30:16 | |
that is an unfairness in the tax
system. We shouldn't be in the | 1:30:16 | 1:30:22 | |
business of telling people how
financially beneficial marriages. I | 1:30:22 | 1:30:27 | |
absolutely agree with my honourable
friend that people ultimately | 1:30:27 | 1:30:30 | |
shouldn't have to get into whether
it's a marriage arrestable | 1:30:30 | 1:30:34 | |
partnership or any kind of signing
on a dotted line relationship to get | 1:30:34 | 1:30:38 | |
a tax break. That should not be the
case. People should have the choice. | 1:30:38 | 1:30:43 | |
This is the disproportionately
positive effect on the people who | 1:30:43 | 1:30:48 | |
are married, particularly men, and
it's women who are disadvantaged | 1:30:48 | 1:30:53 | |
because they cannot receive this
allowance. Looking at some of the | 1:30:53 | 1:30:55 | |
other things within the New Clause
that have been laid down, I have | 1:30:55 | 1:31:02 | |
previously talked particularly
during the custom spill about the | 1:31:02 | 1:31:05 | |
differential regional impact that
there will be Brexit particularly. | 1:31:05 | 1:31:08 | |
It is the case with the leaked
Government analysis that we have | 1:31:08 | 1:31:14 | |
seen that there will be a
significantly higher negative impact | 1:31:14 | 1:31:19 | |
according to that leaked analysis on
areas in the North of England for | 1:31:19 | 1:31:23 | |
example that there will be in areas
like London and the South of | 1:31:23 | 1:31:27 | |
England. I think therefore when the
Government is making policies, | 1:31:27 | 1:31:30 | |
actually what it should be doing is
it should be making sure it's trying | 1:31:30 | 1:31:34 | |
to balance that out and therefore
trying to put in place policies that | 1:31:34 | 1:31:38 | |
are more beneficial to those areas
in order to try to counterbalance | 1:31:38 | 1:31:43 | |
the major negative effect that
Brexit will have. We need to have a | 1:31:43 | 1:31:48 | |
situation where particularly some of
the people in those areas... We | 1:31:48 | 1:32:00 | |
would be able to see more
appropriately, more clearly what the | 1:32:00 | 1:32:05 | |
Government's thoughts on the impacts
are, and part of the problem is that | 1:32:05 | 1:32:10 | |
the Government doesn't actually know
what the impact will be on some of | 1:32:10 | 1:32:13 | |
these policies. They don't know what
the differential impact will be | 1:32:13 | 1:32:16 | |
because they haven't looked at it.
If they do have all of this | 1:32:16 | 1:32:20 | |
analysis, it should be very easy for
them just to publish it and give it | 1:32:20 | 1:32:24 | |
to us that we can scrutinise it and
make the best decisions. Thank you | 1:32:24 | 1:32:30 | |
for giving way. You talk about
regional disparity. Do you think | 1:32:30 | 1:32:35 | |
that the SNP policy of increasing
taxes in Scotland is a way of | 1:32:35 | 1:32:38 | |
narrowing that disparity? I have
raised particularly my concerns | 1:32:38 | 1:32:45 | |
around those earning £26,000 a year
in England who will now pay more tax | 1:32:45 | 1:32:50 | |
in England and they will do in
Scotland... I'm sorry, Mr Speaker, I | 1:32:50 | 1:32:56 | |
being shouted at across the top of
the chamber. Those people at the | 1:32:56 | 1:33:01 | |
bottom of the pile earning under
£26,000 a year in England will pay | 1:33:01 | 1:33:04 | |
more tax in England and they will in
Scotland and I do not think that is | 1:33:04 | 1:33:08 | |
fair because I think those people
most need the support of the | 1:33:08 | 1:33:14 | |
Government, especially with the
changes to tax credits, especially | 1:33:14 | 1:33:17 | |
with the negative impacts there are
two people who are disabled who are | 1:33:17 | 1:33:22 | |
losing £30 per week. This is a
significant issue for the most | 1:33:22 | 1:33:27 | |
vulnerable people and that the
Conservatives to shout about the | 1:33:27 | 1:33:29 | |
fact that tax rates for those who
are earning a reasonable income are | 1:33:29 | 1:33:34 | |
slightly higher in Scotland that
they are in England I think it's | 1:33:34 | 1:33:37 | |
very clear that they are supporting
a different system which doesn't | 1:33:37 | 1:33:43 | |
involve as much fairness as the
system which we are trying to | 1:33:43 | 1:33:45 | |
support in Scotland. Going on with
the process of budget straightening | 1:33:45 | 1:33:50 | |
and the process of scrutiny around
the Finance Bill in general, I have | 1:33:50 | 1:33:56 | |
previously raised the difference lay
my concerns around the fact the | 1:33:56 | 1:33:59 | |
Finance Bill doesn't look to take
evidence. I think it would be much | 1:33:59 | 1:34:07 | |
better if it did and I would like to
see take evidence from organisations | 1:34:07 | 1:34:11 | |
like the women's budget group that
can talk about the gender disparity | 1:34:11 | 1:34:15 | |
in some tax decisions that are being
made. But I honestly don't think | 1:34:15 | 1:34:19 | |
that is enough. It's not enough to
have that scrutiny after the event. | 1:34:19 | 1:34:23 | |
You still have a situation where
despite moving to one of event in a | 1:34:23 | 1:34:30 | |
year, which I welcome that change,
you do not have the level of | 1:34:30 | 1:34:36 | |
consultation that you could tap
before tax measures are suggested | 1:34:36 | 1:34:40 | |
and put in place, before we come to
the actual stage of the Chancellor | 1:34:40 | 1:34:43 | |
standing up and revealing the
budget. Mr Speaker, I thank the Arab | 1:34:43 | 1:34:49 | |
member for giving way. -- I thank
the honourable member for giving | 1:34:49 | 1:34:55 | |
way. There is a revenue follow on
from that because road improvements | 1:34:55 | 1:35:06 | |
mean it is quicker for people to get
to hospital and so on. But the | 1:35:06 | 1:35:10 | |
honourable member agree with me that
it would be helpful if some | 1:35:10 | 1:35:16 | |
financial consideration had been
given in the Finance Bill to what | 1:35:16 | 1:35:19 | |
the reduction of this money would
mean to the Exchequer and indeed | 1:35:19 | 1:35:22 | |
what that would mean to the Scottish
Government being able to rip -- to | 1:35:22 | 1:35:26 | |
replace this funding somehow. I
agree with the point the honourable | 1:35:26 | 1:35:31 | |
member is making. I think the point
I was making earlier about the | 1:35:31 | 1:35:34 | |
differences any impact of Brexit
relates to this. It's important with | 1:35:34 | 1:35:44 | |
trading with the EU but also with
the money coming from the EU for | 1:35:44 | 1:35:49 | |
things like infrastructure products
-- projects, it's important those | 1:35:49 | 1:35:53 | |
are not capped by the Government and
it's important that when the | 1:35:53 | 1:35:58 | |
Chancellor stands up and gives what
will be his spring statement, which | 1:35:58 | 1:36:02 | |
will probably be very light in terms
of the tax changes it will put in | 1:36:02 | 1:36:05 | |
place, because that's what the
business community are generally | 1:36:05 | 1:36:11 | |
asking for, but it will be
incredibly important when it comes | 1:36:11 | 1:36:13 | |
to the Autumn Statement and the
budget that the Chancellor does as | 1:36:13 | 1:36:17 | |
much consultation as he can
beforehand. He will be speaking not | 1:36:17 | 1:36:23 | |
just to Conservative MPs, which I am
aware that he does, he does also | 1:36:23 | 1:36:28 | |
speak to business organisations, he
also needs to speak to others and he | 1:36:28 | 1:36:32 | |
should be consulting on the tax
measures he's looking to put in | 1:36:32 | 1:36:35 | |
place as well as the taking of this
amendment, which ensures there is an | 1:36:35 | 1:36:40 | |
impact analysis afterwards. I am
very grateful. I wonder if she could | 1:36:40 | 1:36:47 | |
explain the consultation that the
Scottish Government undertook before | 1:36:47 | 1:36:51 | |
they increased the taxes there,
which many of my constituents do | 1:36:51 | 1:36:56 | |
think is fair? Despite the call for
consultation, the Scottish | 1:36:56 | 1:37:01 | |
Government consultation have not
reflected any changes. Before the | 1:37:01 | 1:37:08 | |
Scottish Government's folk that
there was, what happened was a | 1:37:08 | 1:37:12 | |
rationale outline of the white was
proposing changes, it consulted each | 1:37:12 | 1:37:19 | |
of parties within Parliament, asking
each of them for their tax plans so | 1:37:19 | 1:37:22 | |
they could be analysed, and actually
this put forward, I'm not entirely | 1:37:22 | 1:37:28 | |
sure it might have in October or
November, whereas the actual vote | 1:37:28 | 1:37:32 | |
was now, is just taken place, giving
a significant amount of time between | 1:37:32 | 1:37:37 | |
the consultation document and the
best discussions on this being | 1:37:37 | 1:37:41 | |
produced and the actual vote in
parliament, whereas what happened | 1:37:41 | 1:37:45 | |
here, we have the budget debate and
then we have the vote. The vote on | 1:37:45 | 1:37:51 | |
the ways and means resolution, some
of the proposals that are being put | 1:37:51 | 1:37:56 | |
in place from that day are being put
in place from that date. It's a very | 1:37:56 | 1:38:02 | |
different situation in the Scottish
parliament where there is a length | 1:38:02 | 1:38:04 | |
of time for consultation because a
draft resolution is -- a draft | 1:38:04 | 1:38:16 | |
budget is produced. Any party is
able to do that in the Scottish | 1:38:16 | 1:38:19 | |
parliament. Some have chosen to and
some had chosen not to. I would | 1:38:19 | 1:38:23 | |
suggest those who have not might be
struggling to balance the books at | 1:38:23 | 1:38:28 | |
Thule or they might have just
decided that houses clearly the best | 1:38:28 | 1:38:31 | |
option. Mr Speaker, I don't want to
take any more time. I think the call | 1:38:31 | 1:38:37 | |
for a quality assessments actually
call for more transparency and | 1:38:37 | 1:38:43 | |
information, not just for the
opposition scrutinising the budget | 1:38:43 | 1:38:45 | |
but also for the Government
ministers who could be taking better | 1:38:45 | 1:38:51 | |
decisions if they could see all of
the impact, particularly those with | 1:38:51 | 1:38:54 | |
protected characteristics. Helen
Wigley. Thank you, Mr Speaker. I | 1:38:54 | 1:39:02 | |
just wanted to make a few brief
comments, especially as I was unable | 1:39:02 | 1:39:06 | |
to intervene earlier run on the
Shadow Minister. But I was hoping to | 1:39:06 | 1:39:12 | |
say at that point, so I'll say it
briefly now, I was quite shocked by | 1:39:12 | 1:39:16 | |
some of the accusations she made and
also what I consider unsubstantiated | 1:39:16 | 1:39:24 | |
claims about a rather illusionary
bright future under the idea of a | 1:39:24 | 1:39:28 | |
Corbyn Government. I'm afraid I felt
she ignored the legacy of the | 1:39:28 | 1:39:34 | |
previous Labour Government because
it was that Labour Government that | 1:39:34 | 1:39:40 | |
failed to build homes now, it failed
on jobs and left many thousands of | 1:39:40 | 1:39:44 | |
families jobless when the
Conservative Government took over. | 1:39:44 | 1:39:53 | |
Unfortunately it increased
inequality in our society. I'm happy | 1:39:53 | 1:39:55 | |
to give way. I'm grateful to the
Member for giving way. Actually, the | 1:39:55 | 1:40:02 | |
number of home owning households
under the last Government increased | 1:40:02 | 1:40:08 | |
by 1 billion. It has fallen under a
Conservative Government and I felt | 1:40:08 | 1:40:12 | |
it was -- increased by 1 million. It
has fallen under the Conservative | 1:40:12 | 1:40:18 | |
Government and I felt it was
important to clarify that. It is | 1:40:18 | 1:40:25 | |
important that we try to focus the
exchanges on New Clause 92 which | 1:40:25 | 1:40:31 | |
with laser-like in tendency --
intensity, I know she will now turn. | 1:40:31 | 1:40:37 | |
She has made a different point from
the point I made, however, because | 1:40:37 | 1:40:45 | |
mine was about the building of
houses. By contrast, this House, | 1:40:45 | 1:40:51 | |
this Government has made progress on
the gender pay gap. This Government | 1:40:51 | 1:40:54 | |
is one that is requiring companies,
for instance, to publish the data on | 1:40:54 | 1:40:59 | |
the gender pay gap and as we well
know and was mentioned earlier this | 1:40:59 | 1:41:04 | |
afternoon, transparency is a huge
driver of change. We have seen that | 1:41:04 | 1:41:08 | |
in many sectors, not just in the
health sector where most of my | 1:41:08 | 1:41:13 | |
experiences. This Government is
raising the national living wage and | 1:41:13 | 1:41:19 | |
we know that disproportionately
benefits women. This argument -- | 1:41:19 | 1:41:26 | |
Government has taken the lowest paid
out attacks. It is this Government | 1:41:26 | 1:41:31 | |
that are making sure that for houses
on the lowest incomes, every £1 they | 1:41:31 | 1:41:36 | |
pay on tax, they benefit to £4 worth
of public spending. And it is this | 1:41:36 | 1:41:41 | |
Government that has overseen a huge
expansion in job so that a million | 1:41:41 | 1:41:46 | |
more are reworked and significantly
to the point she was making about | 1:41:46 | 1:41:49 | |
children, many more children now are
in households where there is | 1:41:49 | 1:41:53 | |
somebody in the household working,
far fewer are in workless households | 1:41:53 | 1:41:58 | |
and we know that work is a key out
of poverty. I give way to my | 1:41:58 | 1:42:03 | |
honourable friend over there. | 1:42:03 | 1:42:07 | |
I thank her forgiving way. Does she
recognise also that it is this | 1:42:07 | 1:42:11 | |
Government that has overseen the
greatest expansion of women in work | 1:42:11 | 1:42:14 | |
since records began? My noble friend
makes a very good point, and in fact | 1:42:14 | 1:42:21 | |
policies that we have put in place
to help women, for instance the | 1:42:21 | 1:42:27 | |
extra free childcare for
three-year-olds, which benefits both | 1:42:27 | 1:42:30 | |
parents but we know it is women who
are often the main child carer so it | 1:42:30 | 1:42:35 | |
particularly helps women with an
ambition to work. I'm grateful to my | 1:42:35 | 1:42:40 | |
noble friend forgiving way. She
recognise also that since the last | 1:42:40 | 1:42:45 | |
Labour government was in power,
youth unemployment has been cut in | 1:42:45 | 1:42:49 | |
half. That generates opportunities,
the dignity of work, the chance to | 1:42:49 | 1:42:52 | |
get on and also the chance for women
and children to achieve their best | 1:42:52 | 1:42:55 | |
in society. I thank my honourable
friend for making such an important | 1:42:55 | 1:43:00 | |
point. This Government has given
thousands of young people the | 1:43:00 | 1:43:06 | |
opportunity to have a job. I
remember it was not that long ago | 1:43:06 | 1:43:11 | |
that everyone was talking all the
time about Neets, the big debate was | 1:43:11 | 1:43:20 | |
on all those young people who were
not in education or training. I | 1:43:20 | 1:43:27 | |
thank the member forgiving way. She
has mentioned the power of numbers | 1:43:27 | 1:43:31 | |
to be able to track progress. New
clause nine is about the power of | 1:43:31 | 1:43:35 | |
numbers to be able to track progress
in tackling inequality, so if she | 1:43:35 | 1:43:39 | |
thinks those numbers are so
important in the battle to ensure we | 1:43:39 | 1:43:42 | |
didn't leave young people behind,
why do she not think the same when | 1:43:42 | 1:43:45 | |
it comes to women and ethnic
minorities? I'm not surprised by my | 1:43:45 | 1:43:52 | |
honourable friend's intervention,
and I think the point is that there | 1:43:52 | 1:43:57 | |
is a thorough impact analysis of the
budget, and no point in endlessly | 1:43:57 | 1:44:02 | |
going things around things again and
again, where does it get us? I think | 1:44:02 | 1:44:07 | |
the honourable lady forgiving way.
Would she agree that bearing in mind | 1:44:07 | 1:44:13 | |
with what she was talking about
women in business, this Government | 1:44:13 | 1:44:18 | |
has seen compared to 2003-2006 under
the Labour government, if you | 1:44:18 | 1:44:24 | |
compare that time to 2013-2016, the
number of women in business and | 1:44:24 | 1:44:29 | |
entrepreneurship has grown by over
40%. Does she agree with me that | 1:44:29 | 1:44:33 | |
this shows this Government's
commitment to women in business? | 1:44:33 | 1:44:36 | |
Another very well-informed point
from a colleague about women in the | 1:44:36 | 1:44:43 | |
workplace supported by this
Government. I think the headline | 1:44:43 | 1:44:46 | |
point that I was keen to make is
that this Government has a track | 1:44:46 | 1:44:50 | |
record in reducing inequality, and
I'm keen to make sure that we base | 1:44:50 | 1:44:56 | |
what I say therefore on the track
record, a track record of improving | 1:44:56 | 1:45:02 | |
lives for people on the lowest
incomes, and reducing inequality. | 1:45:02 | 1:45:06 | |
And let's talk not about... I thank
the honourable lady forgiving way. | 1:45:06 | 1:45:12 | |
Though she agree that it is not just
about income but it is about | 1:45:12 | 1:45:17 | |
equality of opportunity and
aspiration as well? I absolutely | 1:45:17 | 1:45:20 | |
agree the you shouldn't just look at
the outcomes, but in order to get to | 1:45:20 | 1:45:25 | |
a better outcome, the key is
absolutely to give people | 1:45:25 | 1:45:28 | |
opportunities to make the most of
their lives. But particularly helps | 1:45:28 | 1:45:33 | |
those who have a difficult start or
find themselves in a difficult | 1:45:33 | 1:45:36 | |
situation, who may need extra help
to access the but opportunity is | 1:45:36 | 1:45:46 | |
absolutely the key. And then rather
than painting a picture that can | 1:45:46 | 1:45:49 | |
mislead people into thinking that
there is some illusion of a perfect | 1:45:49 | 1:45:53 | |
world, but rather to base claims
unsubstantial policies, I know it is | 1:45:53 | 1:45:59 | |
controversial, but Universal Credit
for instance in my constituency is | 1:45:59 | 1:46:02 | |
making a difference the people who
want to work and want to work more | 1:46:02 | 1:46:06 | |
hours. I have heard many criticisms
of it but genuinely it is making a | 1:46:06 | 1:46:10 | |
difference in terms of giving people
opportunity to increased the work | 1:46:10 | 1:46:16 | |
they do, and the opportunities
coming through thanks to the | 1:46:16 | 1:46:19 | |
industrial strategy, these are the
concrete policies which are going to | 1:46:19 | 1:46:23 | |
make life better for people, and
that is how we reduce inequalities, | 1:46:23 | 1:46:28 | |
and that is why I'm delighted
support the Government throughout | 1:46:28 | 1:46:31 | |
this Finance Bill. Thank you very
much, Madam Deputy Speaker. I thank | 1:46:31 | 1:46:38 | |
you for the chance of being able to
speak on new clause nine in this | 1:46:38 | 1:46:42 | |
debate. As it has been put forward,
I appreciate we should look at the | 1:46:42 | 1:46:50 | |
distribution and the impact of some
of the budget impacts, and that is | 1:46:50 | 1:46:53 | |
what the Treasury already does. At
every budgetary event, it does look | 1:46:53 | 1:46:58 | |
at the impact on the distribution
across the United Kingdom, and ONS | 1:46:58 | 1:47:02 | |
statistics also look at the
distribution and impact across | 1:47:02 | 1:47:05 | |
different household as well. I would
also say that when we're talking | 1:47:05 | 1:47:08 | |
about making sure we shine a light
on these issues and target equality, | 1:47:08 | 1:47:12 | |
I know that I and many members in
this House share your passion for | 1:47:12 | 1:47:15 | |
this, this is the Government that
have put the pressure on companies | 1:47:15 | 1:47:18 | |
to make these publications, and
although there isn't full compliance | 1:47:18 | 1:47:22 | |
yet, I'm sure my right honourable
friend will continue to put pressure | 1:47:22 | 1:47:26 | |
on the sector, and as a referred to
earlier, some follow some of the | 1:47:26 | 1:47:34 | |
industry-leading programme such as
Crossrail and add pressure to show | 1:47:34 | 1:47:37 | |
companies what best practice is in
the UK and internationally. And just | 1:47:37 | 1:47:41 | |
pick up on some broader points about
the pay gap, especially gender pay | 1:47:41 | 1:47:46 | |
gap, I hope honourable members
opposite would have seemed a recent | 1:47:46 | 1:47:49 | |
study quoted in the FT just a month
ago, I would be happy to share it | 1:47:49 | 1:47:53 | |
with them, looking at male and
female pay rates, which are equal up | 1:47:53 | 1:47:56 | |
until middle to senior manager
level, after which | 1:47:56 | 1:48:08 | |
there was a big gap, and the biggest
disparity in where some of the most | 1:48:09 | 1:48:12 | |
uneven gaps appear at the very
senior roles, as in CEO and CFO | 1:48:12 | 1:48:15 | |
roles. And one of the key drivers in
that study was women taking | 1:48:15 | 1:48:18 | |
maternity leave, so we have already
identified the problem in the pay | 1:48:18 | 1:48:20 | |
gap, we should be looking at
policies to increase more flexible | 1:48:20 | 1:48:22 | |
working and having women back into
the workplace after taking maternity | 1:48:22 | 1:48:26 | |
leave. I know colleagues on the
front bench have been looking at | 1:48:26 | 1:48:29 | |
this and reflected that in some of
the budget. More broadly, and to | 1:48:29 | 1:48:35 | |
focus on points made by the
honourable member for Aberdeen | 1:48:35 | 1:48:37 | |
North, comments on tax and equality,
to be very clear, and this new | 1:48:37 | 1:48:41 | |
clause nine was making reference
every part of the United Kingdom, | 1:48:41 | 1:48:45 | |
some of the tax increases that have
been put up in Scotland, they have | 1:48:45 | 1:48:48 | |
been quoted to make a much fairer
society. Just clarity in this House, | 1:48:48 | 1:48:53 | |
the tax changes that have been
putting mean the lowest incomes in | 1:48:53 | 1:48:58 | |
Scotland get £20 more per year.
That's it. That's 38p per week. So | 1:48:58 | 1:49:07 | |
when they stand in this House and
lecture on this being unfair, let's | 1:49:07 | 1:49:12 | |
remember the tax changes they
brought in bring £20 a year, the tax | 1:49:12 | 1:49:16 | |
changes of the Conservative have
brought in bringing £1500 per year | 1:49:16 | 1:49:22 | |
with the tax threshold, so let's
leave the SNP debate on the | 1:49:22 | 1:49:25 | |
sidelines while the Conservatives
bring about truly transformational | 1:49:25 | 1:49:29 | |
change. And also on the marriage
allowance, I'm glad the honourable | 1:49:29 | 1:49:33 | |
member brought it up, because the
party has been in the papers about | 1:49:33 | 1:49:36 | |
the marriage allowance just weekend,
where the Chancellor of the | 1:49:36 | 1:49:40 | |
exchequer of the UK Government had
to stand up and guarantee to people | 1:49:40 | 1:49:43 | |
living in Scotland that they would
bridge the gap created in marriage | 1:49:43 | 1:49:47 | |
allowance by the tax changes that
were imposed by Holyrood, by the SNP | 1:49:47 | 1:49:52 | |
administration in Hollywood, so yet
again it is the UK Exchequer that is | 1:49:52 | 1:49:55 | |
having to stump up for SNP failures
in Scotland. And finally when we're | 1:49:55 | 1:50:04 | |
talking about fairness, it is
important to recognise that it is | 1:50:04 | 1:50:07 | |
this budget that is bringing a real
terms increase to Scotland which has | 1:50:07 | 1:50:09 | |
been recognised by the Finance
Secretary in the Scottish | 1:50:09 | 1:50:11 | |
Parliament, that there is a real
terms increase. So on top of the | 1:50:11 | 1:50:17 | |
£1750 per head spending that we get
already, we're getting a further | 1:50:17 | 1:50:21 | |
increase in real terms to spend on
front line services in Scotland. And | 1:50:21 | 1:50:26 | |
finally, I am conscious of time, but
one important area that I think does | 1:50:26 | 1:50:32 | |
impact on equal issues is that an
tax avoidance, that has been picked | 1:50:32 | 1:50:36 | |
up in the budget, and that is tax
avoidance generally but also on the | 1:50:36 | 1:50:39 | |
VAT provision as well, which is a
member Public Accounts Committee, we | 1:50:39 | 1:50:46 | |
pay specific interest in. And the
provisions that have been put about | 1:50:46 | 1:50:50 | |
targeting VAT avoidance especially
for international payment platforms | 1:50:50 | 1:50:54 | |
and for international marketplaces
give the Exchequer a good | 1:50:54 | 1:50:56 | |
opportunities target those who
currently are not paying VAT that | 1:50:56 | 1:50:59 | |
should, and will hopefully bring
more money into UK coffers, and | 1:50:59 | 1:51:03 | |
allow us to close the equality gap
further still. Thank you, Madam | 1:51:03 | 1:51:10 | |
Deputy Speaker, for calling me. I
wish to put on record my | 1:51:10 | 1:51:14 | |
appreciation that we are all
concerned with equality, and | 1:51:14 | 1:51:17 | |
striving equality across the
country, but we on the side of the | 1:51:17 | 1:51:20 | |
House clearly differ from the other
side in how to achieve this. So | 1:51:20 | 1:51:24 | |
let's look at our record, Madam
Deputy Speaker. I am very proud to | 1:51:24 | 1:51:28 | |
be part of a government that is one
of the most progressive that we have | 1:51:28 | 1:51:32 | |
seen, so the record speaks for
itself in what we have done. | 1:51:32 | 1:51:45 | |
It is not about slogans and words,
it is about real progress and real | 1:51:51 | 1:51:53 | |
change on the ground in people's
lives. That is what we care about on | 1:51:53 | 1:51:56 | |
this side of the House. So we have
talked about a review that the other | 1:51:56 | 1:51:59 | |
side would like us to bring in for
every piece of legislation. I think | 1:51:59 | 1:52:02 | |
it is clear to all of us that this
already happens, the Treasury | 1:52:02 | 1:52:05 | |
already publishes the impact
analysis, and looks at the impact on | 1:52:05 | 1:52:07 | |
the policies. I'm happy to give way.
I'm grateful to the honourable | 1:52:07 | 1:52:09 | |
member forgiving way. The simple
fact is that the Treasury does | 1:52:09 | 1:52:11 | |
publish distributional analysis on
the side of the budget. What it | 1:52:11 | 1:52:16 | |
doesn't do is do a breakdown of the
budget in terms of its impact all | 1:52:16 | 1:52:21 | |
the whole range of protected
characteristics defined by the | 1:52:21 | 1:52:23 | |
equalities act. That is what new
clause nine addresses. The | 1:52:23 | 1:52:26 | |
Government doesn't presently do
this, and indeed of the Government | 1:52:26 | 1:52:30 | |
does as members opposite seems to be
saying, do this, they will have no | 1:52:30 | 1:52:34 | |
trouble voting for this new clause,
because they say it is up to the | 1:52:34 | 1:52:38 | |
Government is already doing. I come
back to the point that we are | 1:52:38 | 1:52:43 | |
already publishing the analysis, and
the Treasury is working on looking | 1:52:43 | 1:52:46 | |
at the impact across a whole range
of levels, but Madam Deputy Speaker, | 1:52:46 | 1:52:50 | |
I wish to come to my Maynard event,
which is that we need to look at the | 1:52:50 | 1:52:55 | |
record of this Government and what
it has already delivered. We have | 1:52:55 | 1:52:58 | |
seen under this Government more
women in work, the point I made to | 1:52:58 | 1:53:02 | |
the honourable friend earlier, that
is women aiming to get into work | 1:53:02 | 1:53:05 | |
because of a wide variety of
policies that we have introduced | 1:53:05 | 1:53:08 | |
including childcare, help to get | 1:53:08 | 1:53:19 | |
into work and retraining at all
times of life. We have also seen a | 1:53:20 | 1:53:23 | |
massive change in income inequality.
Income inequality is the lowest it | 1:53:23 | 1:53:25 | |
has been for many years under this
Government. And since 20 -- 2010,... | 1:53:25 | 1:53:33 | |
Does she not also agree with me that
this budget increase the national | 1:53:33 | 1:53:37 | |
Living Wage by 4.4%, well above the
rate of inflation, and that that | 1:53:37 | 1:53:42 | |
disproportionately assist people
from an ethnic minority background, | 1:53:42 | 1:53:45 | |
people like myself who often find
themselves in low paid work, and | 1:53:45 | 1:53:50 | |
this is a testament to the work the
Government is doing. I thank her for | 1:53:50 | 1:53:53 | |
that intervention, and she makes a
very, very important point. She said | 1:53:53 | 1:53:58 | |
that the national living wage
actually helps people from all | 1:53:58 | 1:54:03 | |
sectors of society, including those
from protected characteristics, | 1:54:03 | 1:54:10 | |
especially from protected
characteristics. So Madam Deputy | 1:54:10 | 1:54:12 | |
Speaker I believe that our record
speaks for itself on these | 1:54:12 | 1:54:16 | |
policies... I think the honourable
lady was first. I thank the | 1:54:16 | 1:54:19 | |
honourable lady forgiving way. She
is promoting the Government's | 1:54:19 | 1:54:22 | |
record. One of the reasons why we on
this side want to get explicit | 1:54:22 | 1:54:28 | |
equality impact assessment, not the
Tyms assessment which I think she | 1:54:28 | 1:54:30 | |
has been told the Government does
produce is because the evidence | 1:54:30 | 1:54:33 | |
showing counter to what she is
suggesting. We know for example the | 1:54:33 | 1:54:37 | |
gender pay gap between women in
their 20s and men in their 20s has | 1:54:37 | 1:54:42 | |
actually started to grow under this
Government. It is now five times | 1:54:42 | 1:54:45 | |
what it was six years ago. I don't
know where the honourable gentleman | 1:54:45 | 1:54:53 | |
from Scotland got his statistics,
but I got mine from the ONS. We | 1:54:53 | 1:54:57 | |
Government policy is either
promoting that or helping to deal | 1:54:57 | 1:54:59 | |
with that, understanding that would
help us all make progress. I thank | 1:54:59 | 1:55:04 | |
for that intervention, she is a
passionate advocate for the gender | 1:55:04 | 1:55:07 | |
pay gap, and my speech will come
onto those were Mark Short. I'm | 1:55:07 | 1:55:10 | |
aware that the gentleman here wants
to... . I'm grateful to my | 1:55:10 | 1:55:16 | |
honourable friend forgiving way. It
is important to see the wood for the | 1:55:16 | 1:55:20 | |
trees here. Precisely the point that
she has indicated, women on lower | 1:55:20 | 1:55:24 | |
wages, instead of paying income tax
at £6,470 as they did under Gordon | 1:55:24 | 1:55:30 | |
Brown now don't start paying income
tax until £11,500, gaining over | 1:55:30 | 1:55:36 | |
£1000 in the process. And the
suggestion that we need a whole load | 1:55:36 | 1:55:40 | |
of impact assessment has given the
lie by the fact that a lot of data | 1:55:40 | 1:55:44 | |
is published by the Office for
National Statistics. If the | 1:55:44 | 1:55:46 | |
honourable lady wishes to make a
point about it in the House of | 1:55:46 | 1:55:48 | |
Commons, she is able to do so. I
thank my honourable friend for that | 1:55:48 | 1:55:54 | |
intervention. He is reinforcing the
point that I'm seeking to make, | 1:55:54 | 1:55:58 | |
which is that it is about pounds in
the pocket of people up and down the | 1:55:58 | 1:56:01 | |
country, and that is what this
Government has done, informed by | 1:56:01 | 1:56:05 | |
fairness from the day that we have
come into Government. I will not | 1:56:05 | 1:56:09 | |
take any more interventions, because
time is short, thank you. OK, this | 1:56:09 | 1:56:14 | |
is the last one. The honourable
gentleman is ever needed | 1:56:14 | 1:56:18 | |
clarification on this point. There
is data out there that shows us that | 1:56:18 | 1:56:22 | |
the gender pay gap is growing. What
we are asking for is analysis of how | 1:56:22 | 1:56:30 | |
Government policy is impacting that
so that we can understand it. I hope | 1:56:30 | 1:56:33 | |
that Claris him and for the lady
opposite why this matters. I thank | 1:56:33 | 1:56:37 | |
her for that point, and I will now
move to the part of my speech where | 1:56:37 | 1:56:40 | |
I will be talking about the gender
pay gap. This is something I care | 1:56:40 | 1:56:45 | |
absolutely passionately about. I am
chair of the APPG for women in | 1:56:45 | 1:56:48 | |
Parliament, we were cross-party
across this issue, and a wider remit | 1:56:48 | 1:56:52 | |
for all of us that especially in
this year, the vote 100 year, we | 1:56:52 | 1:56:58 | |
take this seriously. So the gender
pay gap is an issue that has now | 1:56:58 | 1:57:03 | |
been addressed specifically by this
Government, by a Conservative | 1:57:03 | 1:57:08 | |
Government, a progressive
Government, Madam Deputy Speaker, | 1:57:08 | 1:57:10 | |
that wants to see real change in our
country, that actually wants to put | 1:57:10 | 1:57:13 | |
an end to the situation that the
honourable lady... I'm sorry. But | 1:57:13 | 1:57:20 | |
the honourable lady has said, and
she is right to talk about the fact | 1:57:20 | 1:57:23 | |
that we have got men in higher
paying roles, and women in lower | 1:57:23 | 1:57:28 | |
paying roles. However, I do not
believe this will be fixed by the | 1:57:28 | 1:57:33 | |
clause that the opposition are
proposing. It wouldn't be fixed | 1:57:33 | 1:57:37 | |
because it is a complex issue, Madam
Deputy Speaker, that requires a | 1:57:37 | 1:57:41 | |
range of interventions and a range
of change across the board. | 1:57:41 | 1:57:58 | |
I would be happy to share the study
in the FT, it didn't say the gender | 1:57:58 | 1:58:03 | |
pay gap was closing, what it said
was that men and women up to a | 1:58:03 | 1:58:09 | |
certain seniority were earning
pretty much the same amount in much | 1:58:09 | 1:58:11 | |
sectors but actually it was that
outliers that were making a lot of | 1:58:11 | 1:58:14 | |
the pay gap. The honourable lady may
shake her head but she talks about | 1:58:14 | 1:58:19 | |
clarifying figures and where they're
from Angie called up my honourable | 1:58:19 | 1:58:23 | |
colleague, so I wanted to make sure
she had pure clarification as well | 1:58:23 | 1:58:27 | |
and to be very clear, I'm the
honourable member for a kill and | 1:58:27 | 1:58:31 | |
South Perthshire, not all of
Scotland. I thank my honourable | 1:58:31 | 1:58:36 | |
friend for about intervention and
it's clear we all take this very | 1:58:36 | 1:58:39 | |
seriously. I wish to come back to
the point made by the honourable | 1:58:39 | 1:58:42 | |
lady when she spoke about the gender
pay back -- pay gap when I | 1:58:42 | 1:58:51 | |
intervened earlier. She said the
Government has no teeth to act when | 1:58:51 | 1:58:56 | |
companies don't publish the data but
it's my understanding that the | 1:58:56 | 1:59:00 | |
Government does have teeth to act,
something called the equality and | 1:59:00 | 1:59:04 | |
human rights commission. It act
where companies failed to publish | 1:59:04 | 1:59:09 | |
that data. I urge the ministers from
the Treasury to make sure they are | 1:59:09 | 1:59:13 | |
paying close attention to that. I'm
aware from the work I've done in my | 1:59:13 | 1:59:17 | |
committee, the base committee, that
a number of companies have published | 1:59:17 | 1:59:21 | |
that data which is great news.
That's now in the public domain. | 1:59:21 | 1:59:25 | |
It's something the Conservative
Government have done. The Labour | 1:59:25 | 1:59:28 | |
Government did not do that. Now many
more companies are following suit | 1:59:28 | 1:59:32 | |
and that is making a very big
difference to the employees in that | 1:59:32 | 1:59:38 | |
company. The equality and human
rights commission can actually issue | 1:59:38 | 1:59:41 | |
a notice and they can require
implementation. I think the point my | 1:59:41 | 1:59:45 | |
honourable friend from Keele and
South Ayrshire made earlier is that | 1:59:45 | 1:59:50 | |
this actually is a complex issue.
I'd like to draw attention to | 1:59:50 | 1:59:55 | |
members of the 30% club, set up by
Helena Morrisey, who got a load of | 1:59:55 | 2:00:00 | |
business leaders together and urged
them to take voluntary action by | 2:00:00 | 2:00:04 | |
putting women on boards and what she
found was there was a no legal right | 2:00:04 | 2:00:09 | |
governments mandate here, but
because they all were about | 2:00:09 | 2:00:13 | |
reputational damage and their image
with their employees and culture, | 2:00:13 | 2:00:16 | |
she saw significant change across
the board with that issue. I believe | 2:00:16 | 2:00:23 | |
as an employer myself before I came
into this House, it isn't simply a | 2:00:23 | 2:00:27 | |
matter of passing laws in the House
or a Government review, it is about | 2:00:27 | 2:00:32 | |
a societal and cultural change, so
that's why I'm very proud that our | 2:00:32 | 2:00:36 | |
Government led by our Prime
Minister, the second beam out | 2:00:36 | 2:00:40 | |
Conservative Prime Minister is
leading from the front on this issue | 2:00:40 | 2:00:45 | |
and companies across the board and
businesses are following suit. So I | 2:00:45 | 2:00:49 | |
think that the Government's record
speaks for itself. It's not just | 2:00:49 | 2:00:54 | |
about slogans, it's about enacting
policies, Madam Deputy Speaker, that | 2:00:54 | 2:00:58 | |
make a big difference. I worry that
having analyses and additional | 2:00:58 | 2:01:03 | |
burdens placed on the Treasury at
this time when they have got to | 2:01:03 | 2:01:09 | |
deliver a massive amount of
priorities in order to make out tax | 2:01:09 | 2:01:12 | |
scheme Sarah and achieve progressive
outcomes we want to see would have | 2:01:12 | 2:01:16 | |
the opposite effect. I've certainly
seen myself the danger of unintended | 2:01:16 | 2:01:21 | |
consequences when you wish to
regulate and put more burdensome to | 2:01:21 | 2:01:24 | |
businesses. I will finish by saying
that I do not support the New Clause | 2:01:24 | 2:01:29 | |
9 and I will not be voting for it if
there is a division. Thank you Madam | 2:01:29 | 2:01:37 | |
Deputy Speaker. It is a great
pleasure to be called on this debate | 2:01:37 | 2:01:40 | |
and follow such wonderful speeches
from my colleagues. From my point of | 2:01:40 | 2:01:45 | |
view I do understand the Treasury
publishes about tax welfare and I | 2:01:45 | 2:01:55 | |
have never been shy of voting with
the opposition if I believe they are | 2:01:55 | 2:01:59 | |
right from my point of view, however
I do not believe are right in this | 2:01:59 | 2:02:03 | |
point of view. The reason for that
is simply that I do not believe the | 2:02:03 | 2:02:08 | |
review they are asking for which
focuses predominantly on household | 2:02:08 | 2:02:11 | |
income levels and issues around
Treasury analysis is simply because | 2:02:11 | 2:02:16 | |
it is providing more data and
analysis and it's not actually going | 2:02:16 | 2:02:19 | |
to help people on the lowest incomes
or people from disadvantaged | 2:02:19 | 2:02:24 | |
backgrounds move forward in life.
For me, this seems to be very | 2:02:24 | 2:02:27 | |
academic as opposed to actually
helping people push forward and | 2:02:27 | 2:02:32 | |
achieve opportunity. For me, the
real issue is around inequality in | 2:02:32 | 2:02:38 | |
life chances. At the moment, I
believe the best way of changing | 2:02:38 | 2:02:42 | |
your life chances is still three
getting a better education and I am | 2:02:42 | 2:02:47 | |
proud on the Government's record on
the millions more children being | 2:02:47 | 2:02:52 | |
educated in good or outstanding
schools and that's something we | 2:02:52 | 2:02:55 | |
should all be proud of. As I say, I
am not shy of voting with your | 2:02:55 | 2:03:01 | |
position if I believe they are
right... Would my honourable friend | 2:03:01 | 2:03:05 | |
agree with me that we have had a lot
of investment in the schools sector | 2:03:05 | 2:03:09 | |
which is helping to achieve the sort
of result that he is talking about. | 2:03:09 | 2:03:13 | |
For example in my constituency,
Highfield School was rebuilt | 2:03:13 | 2:03:16 | |
recently. I do agree with my
colleague, we have seen massive | 2:03:16 | 2:03:26 | |
investment in this area. I am proud
of the number of primary schools | 2:03:26 | 2:03:30 | |
expanded in my constituency
constituency, rebuilt, and I am | 2:03:30 | 2:03:42 | |
proud that all primary schools in my
constituency are rated good or | 2:03:42 | 2:03:46 | |
outstanding. Four of my six
secondary schools are good and the | 2:03:46 | 2:03:50 | |
other two we are currently dealing
with, so I hope by the next | 2:03:50 | 2:03:53 | |
election, I will be one of the few
members of Parliament where every | 2:03:53 | 2:03:56 | |
single child in my constituency is
getting taught in a good or | 2:03:56 | 2:04:01 | |
outstanding school. I come back to
the equality of opportunity and | 2:04:01 | 2:04:06 | |
equality of aspiration and I do not
believe this New Clause 9 provides | 2:04:06 | 2:04:10 | |
that equality of opportunity and
aspiration. I don't believe it would | 2:04:10 | 2:04:14 | |
help anybody in my constituency from
equality and... Am I taking an | 2:04:14 | 2:04:28 | |
intervention? Does he recall a
previous Prime Minister who argue | 2:04:28 | 2:04:35 | |
that sunlight was the best... Their
parents might be an issue in helping | 2:04:35 | 2:04:48 | |
him understand how they get better
schools? I know myself and the | 2:04:48 | 2:04:52 | |
honourable lady agree on a lot of
things that we disagree on others | 2:04:52 | 2:04:56 | |
and we have debated across this
chamber and in committee rooms. I | 2:04:56 | 2:05:00 | |
don't think these figures will help
those children. They are | 2:05:00 | 2:05:07 | |
retrospective to talk about what is
happening... I am happy to take an | 2:05:07 | 2:05:11 | |
intervention. I just want to
clarify, equality impact assessment | 2:05:11 | 2:05:20 | |
seeks to look at the implementation
of policies, have an assessment, see | 2:05:20 | 2:05:24 | |
whether it has helped or hindered
progress. That's all it does. It's a | 2:05:24 | 2:05:31 | |
good thing. It's not a burden, it's
good decision-making. I think the | 2:05:31 | 2:05:40 | |
difference of opinion I have is that
I think a good deal will give much | 2:05:40 | 2:05:49 | |
better aspiration to children and
when we are looking at forecasts of | 2:05:49 | 2:05:56 | |
economists. In the 80s I have been a
member of Parliament, the figures | 2:05:56 | 2:05:59 | |
never seem to right ever -- in the
eight years I have been a member of | 2:05:59 | 2:06:04 | |
Parliament, the figures never seem
to be right ever. I would like to | 2:06:04 | 2:06:07 | |
talk for a moment about Universal
Credit. I campaigned about some of | 2:06:07 | 2:06:12 | |
the issues on Universal Credit and I
believe it as a product is the right | 2:06:12 | 2:06:16 | |
thing to do and I think it was
supported by both parties in the | 2:06:16 | 2:06:20 | |
sense that it supported people who
could not take on an extra hour or | 2:06:20 | 2:06:26 | |
two of work because they lost all of
their benefit. The idea behind it | 2:06:26 | 2:06:29 | |
was that the benefit would be
reduced over a certain period. I | 2:06:29 | 2:06:33 | |
know there are issues and I hope the
Minister has taken note of that | 2:06:33 | 2:06:41 | |
because I continue to raise it with
the Chancellor, but in terms of New | 2:06:41 | 2:06:47 | |
Clause 9, Madam Deputy Speaker,
getting back to the Treasury | 2:06:47 | 2:06:51 | |
putts-mac impact assessment, Madam
Deputy Speaker, I would just like to | 2:06:51 | 2:06:54 | |
say Universal Credit is more in
terms of helping people in their | 2:06:54 | 2:06:57 | |
life chances than a document saying
what happened and what could have or | 2:06:57 | 2:07:06 | |
not hindered it. I'm happy to take
the intervention. All I want to say, | 2:07:06 | 2:07:12 | |
it is good governance to have a
little actual policy at the impact | 2:07:12 | 2:07:16 | |
job policy has on society. I think
the honourable lady makes a very | 2:07:16 | 2:07:24 | |
good point. I can't support this
Clause because I don't think it will | 2:07:24 | 2:07:28 | |
do anything to practically help
people. I think it's just going to | 2:07:28 | 2:07:32 | |
allow academics and economists to
argue over a moot point where I'm | 2:07:32 | 2:07:36 | |
interested in actually helping
people from disadvantaged | 2:07:36 | 2:07:39 | |
backgrounds who want to have the
opportunity to go off and aspire to | 2:07:39 | 2:07:42 | |
be anything they want to. I actually
think it's fairly sad in this day | 2:07:42 | 2:07:46 | |
and age that we are standing here
discussing the fact that we need to | 2:07:46 | 2:07:50 | |
identify whether certain sections of
society need more support than | 2:07:50 | 2:07:53 | |
others. We should be aiming to get
to a society where... Happy to give | 2:07:53 | 2:07:57 | |
way. I thank you very much Madam
Deputy Speaker. I'm very grateful to | 2:07:57 | 2:08:03 | |
the Member for given way. Given that
30% of cuts enacted by Conservative | 2:08:03 | 2:08:10 | |
governments have fallen on the
shoulders of women, would it not be | 2:08:10 | 2:08:16 | |
helpful for those women and indeed
asked as decision-makers to have | 2:08:16 | 2:08:20 | |
known about it before the decisions
to implement them were taken? The | 2:08:20 | 2:08:24 | |
honourable lady makes a point and
they are not because I necessarily | 2:08:24 | 2:08:34 | |
like, but I do believe money has
gone into Social Security and there | 2:08:34 | 2:08:38 | |
are people on low incomes who are
concerned about the 3% on council | 2:08:38 | 2:08:46 | |
tax because it will have a negative
impact on their incomes, although it | 2:08:46 | 2:08:50 | |
helps other areas of society. This
boat is an issue for academics and | 2:08:50 | 2:08:56 | |
economists rather than helping
people on the ground. I know some of | 2:08:56 | 2:09:01 | |
you are shaking your head but you
got involved in politics but the | 2:09:01 | 2:09:05 | |
same reason I did which was to help
people get off on -- get on in life | 2:09:05 | 2:09:09 | |
and achieve the best they can do.
Going back briefly to the welfare | 2:09:09 | 2:09:18 | |
system, because that's my level of
expertise, we want a welfare system | 2:09:18 | 2:09:22 | |
that works. When you look at
Universal Credit and the impact of | 2:09:22 | 2:09:26 | |
New Clause 9 and the Treasury
putts-mac distribution analysis, | 2:09:26 | 2:09:31 | |
because it does provide an impact on
that, my view is very much about | 2:09:31 | 2:09:36 | |
developing policies that help get on
in life and for me New Clause 9 is | 2:09:36 | 2:09:43 | |
about providing information on
what's affected people in the past | 2:09:43 | 2:09:46 | |
over a number of years and by the
time we vote on the next budget, | 2:09:46 | 2:09:51 | |
it's moved on again. I'm happy to
give way. I thank my honourable | 2:09:51 | 2:09:57 | |
friend for giving way and he's
making, as I think everybody knows, | 2:09:57 | 2:10:00 | |
very powerful speech in this debate.
Would he agree with me that this | 2:10:00 | 2:10:06 | |
Clause nine is indicative of the
fundamental difference between that | 2:10:06 | 2:10:10 | |
side and this site? On this side of
the House we care about action and | 2:10:10 | 2:10:13 | |
doing things and improving people's
lives and on that side of the House, | 2:10:13 | 2:10:17 | |
they want more analysis question
mark my honourable friend makes a | 2:10:17 | 2:10:24 | |
very powerful point and you can
understand why he was selected to be | 2:10:24 | 2:10:28 | |
the member of Parliament for pigeon
and Houston. I am proud that in this | 2:10:28 | 2:10:36 | |
debate we have got three
Hertfordshire MPs speaking in this | 2:10:36 | 2:10:40 | |
debate. I'm happy to give way. Thank
you, you are being very generous | 2:10:40 | 2:10:50 | |
with your time. You are absolutely
right. This New Clause highlights | 2:10:50 | 2:10:56 | |
the difference between the
Government and the opposition. The | 2:10:56 | 2:11:01 | |
Government is making changes
regardless of whether it hinders or | 2:11:01 | 2:11:05 | |
hurts people, whereas on this side
of the House we want to have | 2:11:05 | 2:11:08 | |
policies that ensure that they help
society. The honourable and makes a | 2:11:08 | 2:11:13 | |
very powerful point which I respect
but I will assure the honourable | 2:11:13 | 2:11:17 | |
lady I only vote for a policy that I
believe will help people and if I | 2:11:17 | 2:11:21 | |
don't believe it will help people, I
vote against it. I have a record of | 2:11:21 | 2:11:25 | |
doing that and I will continue doing
that. I am happy to give way. I am | 2:11:25 | 2:11:30 | |
grateful to my honourable friend for
giving way. I'm sure he would agree | 2:11:30 | 2:11:34 | |
with me as many would that the
Treasury produce excellent research | 2:11:34 | 2:11:39 | |
documents. But when it comes to
making further and further demands | 2:11:39 | 2:11:43 | |
for research, isn't it indicative of
the gap between the parties, that | 2:11:43 | 2:11:48 | |
they are the researchers and we are
the doers. | 2:11:48 | 2:11:55 | |
I could never disagree with my noble
friend. One of the issues I find | 2:11:55 | 2:12:00 | |
with new clause nine which I find
difficult is around | 2:12:00 | 2:12:05 | |
intergenerational fairness, and I
don't think the clause captures the | 2:12:05 | 2:12:08 | |
issues we have as a society and the
challenges facing the different | 2:12:08 | 2:12:15 | |
generations, so you have some people
who are living in large houses | 2:12:15 | 2:12:19 | |
paying high council tax rates on
very low and fixed incomes, and | 2:12:19 | 2:12:24 | |
young people who may be quite
affluent, but can't afford to | 2:12:24 | 2:12:27 | |
purchase a property in their part of
the country, whereas in a different | 2:12:27 | 2:12:31 | |
part of the country, they could
easily afford to purchase a | 2:12:31 | 2:12:33 | |
property, but they may not be able
to get a job, so they can't get a | 2:12:33 | 2:12:38 | |
mortgage for that, so I think
intergenerational fairness and | 2:12:38 | 2:12:41 | |
ensuring that the Government done
what is done to the Northern | 2:12:41 | 2:12:43 | |
Powerhouse trying to spread the
wealth throughout the country is | 2:12:43 | 2:12:47 | |
important. So I do think is a
Government this Conservative | 2:12:47 | 2:12:51 | |
Government has tried very hard. He
has not always got it right, and I | 2:12:51 | 2:12:55 | |
have voted against them when I
believe they have got it wrong, but | 2:12:55 | 2:12:58 | |
I do think that what they have tried
to do consistently is help people | 2:12:58 | 2:13:02 | |
get on in life, provide a welfare
system that wants to provide a | 2:13:02 | 2:13:06 | |
safety net for those who need it in
times of difficulty, and when it | 2:13:06 | 2:13:11 | |
comes to education, providing people
with the opportunity, because in | 2:13:11 | 2:13:14 | |
this country, education is still the
best way out of poverty, it is still | 2:13:14 | 2:13:18 | |
the best opportunity you've got to
change our life chances, and I'm | 2:13:18 | 2:13:22 | |
proud of what they have done a
insuring millions more children are | 2:13:22 | 2:13:25 | |
being taught in good and outstanding
schools. And when it comes to the | 2:13:25 | 2:13:29 | |
economy itself, the fact that we
have got record rates of employment, | 2:13:29 | 2:13:35 | |
all those people out there earning
tax and contributing to society... I | 2:13:35 | 2:13:40 | |
thank the honourable gentleman
forgiving way. He seems to be making | 2:13:40 | 2:13:46 | |
quite a lengthy speech. He talks
about equality and people getting on | 2:13:46 | 2:13:50 | |
in life, and I respect the fact that
he has rebelled against the | 2:13:50 | 2:13:53 | |
Government when he sees fit, he has
spoken about the importance of a | 2:13:53 | 2:13:57 | |
good education with people coming
out of university, but does he share | 2:13:57 | 2:14:00 | |
my concern that the under 25 is not
included in the national living | 2:14:00 | 2:14:04 | |
wage? From my point of view, I think
there are geographic issues around | 2:14:04 | 2:14:11 | |
the national living wage, so I think
in Hertfordshire it is much more | 2:14:11 | 2:14:14 | |
expensive to live, and one of the
challenges we have in Hertfordshire | 2:14:14 | 2:14:18 | |
is a shocking challenge that I
imagine a lot of people in the rest | 2:14:18 | 2:14:20 | |
of the country would understand. My
constituency is 19 minutes from | 2:14:20 | 2:14:25 | |
King's Cross, and as a result, we
lose a lot of our young people into | 2:14:25 | 2:14:29 | |
London, so when I became a member of
Parliament, there were yet less than | 2:14:29 | 2:14:33 | |
200 apprentices per year is starting
work in Stevenage, and we now have | 2:14:33 | 2:14:42 | |
nearly a thousand a year, because it
was the only way of holding onto our | 2:14:42 | 2:14:45 | |
young people. Set if you are an
apprentice in Stevenage and you were | 2:14:45 | 2:14:48 | |
thinking about new clause nine, then
the distribution all analysis, the | 2:14:48 | 2:14:51 | |
impact on a young person in
Stevenage would be if you become | 2:14:51 | 2:14:57 | |
apprentice, they will pave you to
get a level 4 degrees of you will be | 2:14:57 | 2:15:01 | |
earning £25,000 a year, and you want
get any university debt. I started | 2:15:01 | 2:15:07 | |
my career as a modern apprentice,
that their relatives under UK law, | 2:15:07 | 2:15:11 | |
apprentices can still be paid as
little as £3 50 per hour, so how | 2:15:11 | 2:15:17 | |
does that fit in with building a
country that works for everyone? | 2:15:17 | 2:15:22 | |
£3.50 an hour would not be
acceptable in Hertfordshire. | 2:15:22 | 2:15:24 | |
Employees will have to pay far more
than that to attract a young person | 2:15:24 | 2:15:28 | |
or they just won't get them and that
is the reality. We have the highest | 2:15:28 | 2:15:34 | |
in Hertfordshire at 1.6%,
unemployment rates... I think it is | 2:15:34 | 2:15:39 | |
important that the honourable
gentleman returns to the substance | 2:15:39 | 2:15:42 | |
of the debate, new clause nine. Just
mentioning it every now and then | 2:15:42 | 2:15:48 | |
doesn't do the trick. | 2:15:48 | 2:15:49 | |
You are very kind, Madam Deputy
Speaker, and I had no intention of | 2:15:54 | 2:16:00 | |
misleading you. I wanted to ensure
the fact that the distribution all | 2:16:00 | 2:16:06 | |
analysis of the cumulative impact
Government's tax welfare is a | 2:16:06 | 2:16:10 | |
wide-ranging topic and covers a big
righty, and I was trying to make the | 2:16:10 | 2:16:14 | |
point that I don't want to support
new clause nine because it seems to | 2:16:14 | 2:16:18 | |
be academic as opposed to helping
the people from different | 2:16:18 | 2:16:22 | |
backgrounds achieve their life
chances. So on that note I shall sit | 2:16:22 | 2:16:25 | |
down. Thank you, Madam Deputy
Speaker. The speeches opposite been | 2:16:25 | 2:16:31 | |
so rousing that I've been moved to
my feet to take on the sheer | 2:16:31 | 2:16:37 | |
absurdity of the arguments we have
heard this afternoon. We have heard | 2:16:37 | 2:16:41 | |
member after member stand up and
tell us that they are opposing new | 2:16:41 | 2:16:44 | |
clause nine because the Government
already does it. If the Government | 2:16:44 | 2:16:47 | |
already does it, then why aren't
they supporting new clause nine? The | 2:16:47 | 2:16:50 | |
fact is that the Government doesn't
already do it. What the Government | 2:16:50 | 2:16:54 | |
does is publish an impact assessment
looking at the distribution of | 2:16:54 | 2:16:58 | |
analysis of budget measurements by
house is dependent on income. This | 2:16:58 | 2:17:01 | |
measure was introduced by a previous
Chancellor until the current | 2:17:01 | 2:17:06 | |
Chancellor's predecessor decided it
was politically inconvenient and got | 2:17:06 | 2:17:10 | |
rid of it, and the present
Chancellor, to his credit, decided | 2:17:10 | 2:17:12 | |
to bring it back. That is
interesting, it is useful, it | 2:17:12 | 2:17:17 | |
informs Ministers were now making
decisions, but it doesn't cover the | 2:17:17 | 2:17:19 | |
measures that new clause nine
addresses, and the fact is that the | 2:17:19 | 2:17:24 | |
budget of a Government and the
Finance Bill of a Government is a | 2:17:24 | 2:17:28 | |
reflection of its political
priorities. It tells the country | 2:17:28 | 2:17:30 | |
about the problems it wants to
address, and how it intends to do so | 2:17:30 | 2:17:35 | |
through sufficient provision of
resources. And the simple fact is | 2:17:35 | 2:17:39 | |
that if the Government did an
equalities impact assessment on its | 2:17:39 | 2:17:43 | |
budget measures, we may not be in a
position where women in their 50s | 2:17:43 | 2:17:46 | |
are being clobbered by changes to
their state pension age at a time in | 2:17:46 | 2:17:51 | |
their life that gives them little
time or opportunity to address it, | 2:17:51 | 2:17:54 | |
and as a result of the Government's
refusal to listen to argument and | 2:17:54 | 2:18:00 | |
evidence and reason, I get
constituents in my surgery on Friday | 2:18:00 | 2:18:03 | |
afternoon, women in their 50s, who
tell me that they have lost their | 2:18:03 | 2:18:06 | |
job, they are not able to access
their pension when they expect, they | 2:18:06 | 2:18:11 | |
had planned to retirement and as a
result there ends no longer meet. | 2:18:11 | 2:18:15 | |
And there is nothing they can do
about it at that stage, and had the | 2:18:15 | 2:18:19 | |
Government consider the evidence
they might have made a different | 2:18:19 | 2:18:21 | |
decision. On government applied a
measure of equality impact on their | 2:18:21 | 2:18:25 | |
budget, we may not be in a position
where disabled people have been | 2:18:25 | 2:18:31 | |
consistently and repeatedly
clobbered by changes to welfare and | 2:18:31 | 2:18:33 | |
other areas of public policy. If the
Government did as local authorities | 2:18:33 | 2:18:38 | |
do, look at the equalities impact of
their decision, they might take | 2:18:38 | 2:18:43 | |
steps to mitigate against the impact
on disabled people, but instead we | 2:18:43 | 2:18:47 | |
see both nationally and locally
disabled people are too often seeing | 2:18:47 | 2:18:52 | |
the books balanced on their backs,
which is totally unjustifiable | 2:18:52 | 2:18:59 | |
the books balanced on their backs,
which is totally unjustifiable. And | 2:18:59 | 2:19:00 | |
if the Government looked at their
impact of their measures on black | 2:19:00 | 2:19:03 | |
and minority ethnic people, they may
well defined as we have already | 2:19:03 | 2:19:06 | |
addressed this afternoon that they
take different approaches to the | 2:19:06 | 2:19:09 | |
resources in education to address
the imbalance is there. They may | 2:19:09 | 2:19:12 | |
also find through analysis and
research, words that have become an | 2:19:12 | 2:19:17 | |
anathema to this Government and its
approach to public policy making, | 2:19:17 | 2:19:21 | |
some surprises, like detrimental
changes to small businesses have a | 2:19:21 | 2:19:24 | |
disproportional impact on BME
communities. They may choose to do | 2:19:24 | 2:19:29 | |
is having about it, they may not,
but at least they're policy-making | 2:19:29 | 2:19:33 | |
is better informed. And I just think
that in the debate on this bill in | 2:19:33 | 2:19:36 | |
particular, someone has to stand up
and make the case for a reasoned, | 2:19:36 | 2:19:41 | |
evidence -based public
policy-making. I think it is a total | 2:19:41 | 2:19:45 | |
disgrace that in the democratic
discourse of this country, we now | 2:19:45 | 2:19:48 | |
see the trashing of experts, we are
now warned that if we adopted new | 2:19:48 | 2:19:52 | |
clause nine, academics may debated,
God forbid that people with some | 2:19:52 | 2:19:55 | |
degree of expertise should debate
the laws that we pass, because | 2:19:55 | 2:19:58 | |
goodness knows it doesn't happen in
this chamber often enough. What is | 2:19:58 | 2:20:03 | |
it about expertise of data that the
Government are so afraid of? What is | 2:20:03 | 2:20:08 | |
it about information they find so
terrify? May be the honourable | 2:20:08 | 2:20:10 | |
member for Braintree will tell us.
I'm curious, he expresses his desire | 2:20:10 | 2:20:19 | |
for experts to have a role in the
production of Treasury bills and | 2:20:19 | 2:20:24 | |
finance bills. Does he therefore not
regard Treasury officials as being | 2:20:24 | 2:20:28 | |
experts? Unlike the members
opposite, I have high regard for | 2:20:28 | 2:20:31 | |
Treasury officials, and I don't
trash the data that is produced by | 2:20:31 | 2:20:36 | |
civil servants in the way that
Ministers of the Crown do. And I | 2:20:36 | 2:20:40 | |
think civil servants are very good
example of experts, and I would like | 2:20:40 | 2:20:43 | |
the expertise of the Treasury and
the civil service drawn upon to | 2:20:43 | 2:20:48 | |
produce exactly the kind of
equalities impact assessment that | 2:20:48 | 2:20:50 | |
our front bench is causing for with
new clause nine. It is because of | 2:20:50 | 2:20:57 | |
our civil service and their ability
to gather and gun evidence that I | 2:20:57 | 2:21:00 | |
would like to see a more evidence
-based approach to public | 2:21:00 | 2:21:04 | |
policy-making. With such an approach
we were done have a better quality | 2:21:04 | 2:21:07 | |
of Government, and goodness knows we
need that when you look at the | 2:21:07 | 2:21:11 | |
current state of things. But also we
have a better quality of debate in | 2:21:11 | 2:21:14 | |
this House about what our priorities
are, the challenges facing the | 2:21:14 | 2:21:18 | |
country and how we need to tackle
them, and I think this is... I will | 2:21:18 | 2:21:22 | |
give way one final time. I thank the
honourable friend the giving way. He | 2:21:22 | 2:21:25 | |
makes a big play of analysis. Can he
afford a house of the distribution | 2:21:25 | 2:21:31 | |
of impact of £170 billion of extra
borrowing and the interest payments | 2:21:31 | 2:21:36 | |
on what that will have on our
community. I'm very grateful for | 2:21:36 | 2:21:39 | |
that point, because he raises
exactly the point I have made since | 2:21:39 | 2:21:44 | |
the general election, which is the
manifesto policies that we put | 2:21:44 | 2:21:47 | |
forward, which proved immensely
popular, by the way, across the | 2:21:47 | 2:21:51 | |
country and led to a result that
lots of people weren't expecting. I | 2:21:51 | 2:21:56 | |
think we should do the distribution
of analysis of policies right across | 2:21:56 | 2:21:59 | |
the board to make sure that
resources are properly targeted | 2:21:59 | 2:22:03 | |
where they are needed. But I just
want to say in conclusion, Madame | 2:22:03 | 2:22:08 | |
Deputy Speaker, that we should not
fear information and evidence. It | 2:22:08 | 2:22:12 | |
would lead to better informed
government, and I think the greatest | 2:22:12 | 2:22:16 | |
tragedy of this Prime Minister is
not the fact she is currently being | 2:22:16 | 2:22:20 | |
held hostage by the hard Brexiteers
on the right of her party, but that | 2:22:20 | 2:22:24 | |
those fine words that she gave on
the steps of Downing Street about | 2:22:24 | 2:22:28 | |
creating a more equal society and
tackling the injustices that still | 2:22:28 | 2:22:32 | |
loom large even in the 21st-century
in one of the richest economies in | 2:22:32 | 2:22:35 | |
the world, she has not delivered on
a single one of those sentiments, | 2:22:35 | 2:22:39 | |
and sentiments all well and good,
but we need policies that are backed | 2:22:39 | 2:22:44 | |
up by evidence and reason and the
ability to genuinely tackle the | 2:22:44 | 2:22:50 | |
problems at the Prime Minister set
out so long ago on the steps of | 2:22:50 | 2:22:54 | |
another ten but I fear she will
never be able to implement before | 2:22:54 | 2:22:56 | |
they boot her out next year. Thank
you, Madame Deputy Speaker. Before I | 2:22:56 | 2:23:01 | |
plunge into new clause nine, as
indeed I will, at some length, may I | 2:23:01 | 2:23:06 | |
just concur wholeheartedly with the
statement made by the honourable | 2:23:06 | 2:23:12 | |
member for Ilford North when he
praised civil servants, the | 2:23:12 | 2:23:16 | |
impartiality, their objectivity and
their professionalism, and I have | 2:23:16 | 2:23:19 | |
always found in my experience and
the Treasury to be exactly that, and | 2:23:19 | 2:23:22 | |
I think that is an important point
that we should all register. We have | 2:23:22 | 2:23:27 | |
had, Madame Deputy Speaker, a fairly
wide-ranging debate. I hesitate to | 2:23:27 | 2:23:32 | |
add that on one or two occasions, it
has been marginally informative, and | 2:23:32 | 2:23:37 | |
I think on one occasion, I won't
name the | 2:23:37 | 2:23:50 | |
member, it actually very informative
because I actually learned something | 2:23:52 | 2:23:54 | |
that I hadn't heard before. But the
reason why it has been wide-ranging | 2:23:54 | 2:23:57 | |
I think, Madame Deputy Speaker, is
of course this is an extremely | 2:23:57 | 2:23:59 | |
important issue, and I think what
unites both sides of this House is | 2:23:59 | 2:24:02 | |
that every member of this House
deplores unwarranted inequality, not | 2:24:02 | 2:24:04 | |
that we are all entirely equal,
because of course we are different, | 2:24:04 | 2:24:06 | |
but we have a right to be treated
with equal respect, a right to the | 2:24:06 | 2:24:11 | |
equal opportunity and aspiration, as
my honourable friend the Member for | 2:24:11 | 2:24:15 | |
Stevenage so eloquently termed it.
And if I could just look at new | 2:24:15 | 2:24:21 | |
clause nine in just a little bit of
detail, Madame Deputy Speaker, | 2:24:21 | 2:24:24 | |
because it has been slightly absent
as I was suggesting from the debate | 2:24:24 | 2:24:28 | |
this afternoon. Let's bring it right
back to centre stage. What this new | 2:24:28 | 2:24:33 | |
clause seeks to do, Madame Deputy
Speaker, is to require the | 2:24:33 | 2:24:37 | |
Chancellor of the X to provide a
report, a review, before the House, | 2:24:37 | 2:24:43 | |
within six months of the passing of
this act. And in so doing, to look | 2:24:43 | 2:24:51 | |
at a number of particular aspects of
the impacts of the Finance Bill that | 2:24:51 | 2:24:57 | |
is going through this House this
afternoon. So the review under this | 2:24:57 | 2:25:02 | |
amendment would look at the impact
of those provisions on households at | 2:25:02 | 2:25:05 | |
different levels of income, as has
already been pointed out at length | 2:25:05 | 2:25:09 | |
in this debate, we have indeed
brought back the household | 2:25:09 | 2:25:14 | |
distribution of analysis that looks
at tax and welfare and public | 2:25:14 | 2:25:19 | |
expenditure and the impact of those
elements on the different income | 2:25:19 | 2:25:28 | |
levels by centile. It also seeks to
look at the impact of the provisions | 2:25:28 | 2:25:32 | |
of people with protected
characteristics within the meaning | 2:25:32 | 2:25:34 | |
of the equality 2010, and perhaps
that will be a moment for me to say | 2:25:34 | 2:25:40 | |
some thing very important, which is
of course Ministers always sick to | 2:25:40 | 2:25:44 | |
operate within the law, and the
equalities act is very clear as to | 2:25:44 | 2:25:50 | |
what our duties are as Ministers
when we consider the various | 2:25:50 | 2:25:54 | |
policies that come before us, not
just those of course which come | 2:25:54 | 2:25:59 | |
before us in the context of a major
fiscal event, but those policies and | 2:25:59 | 2:26:03 | |
decisions that we take day in, day
out, some of which never even pass | 2:26:03 | 2:26:08 | |
through this House. But we do it in
just because of the law, Madame | 2:26:08 | 2:26:13 | |
Deputy Speaker. We do it because we
think it is the right thing to do. | 2:26:13 | 2:26:16 | |
The impact of these provisions on
the Treasury's compliance with the | 2:26:16 | 2:26:21 | |
public sector equality duty under
section 1-49 of the Equality Act | 2:26:21 | 2:26:26 | |
2010 and the provisions of equality
in different parts of the United | 2:26:26 | 2:26:30 | |
Kingdom and different regions of
England, and what that comes to | 2:26:30 | 2:26:37 | |
focus on the specific taxes to which
this assessment, this requirement of | 2:26:37 | 2:26:41 | |
the Chancellor of the Exchequer to
prevent this report, would actually | 2:26:41 | 2:26:44 | |
focus upon. And I would like to make
an important point one general point | 2:26:44 | 2:26:49 | |
here, which is that it is far easier
to look at regional aspects of | 2:26:49 | 2:26:55 | |
spending and tax, to look at the
spending elements, than it is to | 2:26:55 | 2:26:58 | |
look at the regional distribution
when it comes to taxation, and that | 2:26:58 | 2:27:04 | |
is for fairly obvious reasons. I
will give way. | 2:27:04 | 2:27:11 | |
Does the Minister agree with me that
to carry out these impact | 2:27:11 | 2:27:16 | |
assessments would be so impractical
that it would slow down Government | 2:27:16 | 2:27:19 | |
business and perhaps that's one of
the reasons why the opposition has | 2:27:19 | 2:27:22 | |
put in this New Clause, to actually
make it difficult for us to get our | 2:27:22 | 2:27:28 | |
policies through? I thank my
honourable friend very much for that | 2:27:28 | 2:27:31 | |
intervention. She touches on an
important point which is that there | 2:27:31 | 2:27:35 | |
is an element of proportionality
here because as I'm going to come on | 2:27:35 | 2:27:39 | |
to argue, Madam Deputy Speaker, one
of the difficulties with accepting | 2:27:39 | 2:27:45 | |
New Clause 9 is that a lot of this
information isn't available. That | 2:27:45 | 2:27:48 | |
isn't an argument for not going out
to find the information, but it does | 2:27:48 | 2:27:51 | |
also indicate that some of it is
extremely difficult to actually | 2:27:51 | 2:27:56 | |
generate. I don't think I would go
as far as my honourable friend in | 2:27:56 | 2:28:00 | |
suggesting that this is a
Machiavellian plan to gum up the | 2:28:00 | 2:28:03 | |
works of Government but I'm sure
some members opposite might be | 2:28:03 | 2:28:07 | |
pleased to see that happen. But I
take this in the spirit of the | 2:28:07 | 2:28:13 | |
wording that I see in front of me
and I certainly give way to the | 2:28:13 | 2:28:16 | |
honourable lady. I thank the
Minister for giving way. I just | 2:28:16 | 2:28:20 | |
wanted to help the Minister a bit.
The women's budget group, lots of | 2:28:20 | 2:28:26 | |
organisations accumulate the data
that's needed as well as the ONS and | 2:28:26 | 2:28:31 | |
the HMRC, said the data is there in
order to carry out the impact | 2:28:31 | 2:28:35 | |
assessment and that the Treasury
Department does some anyway. What | 2:28:35 | 2:28:40 | |
the honourable lady is suggesting is
that one particular set of analysis | 2:28:40 | 2:28:43 | |
is an ideal set to present and can
be seen as in no way misleading, | 2:28:43 | 2:28:50 | |
entirely robust, entirely objective.
Now, if we are to breach that | 2:28:50 | 2:28:54 | |
quality of data, we have to achieve
certain specific aims. One of the | 2:28:54 | 2:28:58 | |
games would have to be that we had
to deal with a lot of analysis to | 2:28:58 | 2:29:03 | |
which she is preparing its very
selective, it doesn't the entire | 2:29:03 | 2:29:08 | |
scale. Some of this analysis good
look at reflecting changes in income | 2:29:08 | 2:29:13 | |
tax, for example, which may benefit
one group over another but without | 2:29:13 | 2:29:19 | |
taking into account increased
spending on child care. If I may | 2:29:19 | 2:29:25 | |
finish on this point, then I'll
certainly give way to the honourable | 2:29:25 | 2:29:27 | |
lady. A lot of these analysis also
just simply look at the static | 2:29:27 | 2:29:33 | |
situations, they don't take into a
fact the fact that these have a | 2:29:33 | 2:29:38 | |
dynamic effect on the economy
themselves, driving up employment, | 2:29:38 | 2:29:42 | |
for example. Many people have spoken
eloquently this afternoon about the | 2:29:42 | 2:29:46 | |
record level of female employment at
the moment. That is something | 2:29:46 | 2:29:52 | |
benefiting women and in terms of the
policies interacting with our | 2:29:52 | 2:29:55 | |
benefit, that is not reflected in
the analysis. I have already | 2:29:55 | 2:29:58 | |
mentioned that a lot of the analysis
being sought here is not easy to | 2:29:58 | 2:30:10 | |
find, particularly with regards to
gender reassignment and sexuality, | 2:30:10 | 2:30:18 | |
it is very hard to define where they
are affected, particularly with the | 2:30:18 | 2:30:23 | |
clauses in New Clause 9 that the
opposition is seeking to address. | 2:30:23 | 2:30:26 | |
Before I give way, and I will then
give way to the honourable lady for | 2:30:26 | 2:30:30 | |
Oxford East, it's been a long while
since we just did, so I will | 2:30:30 | 2:30:36 | |
certainly give way to the honourable
lady. There is also an important | 2:30:36 | 2:30:41 | |
point on the impact of the goals in
particular which is one of the | 2:30:41 | 2:30:44 | |
points of the major thrust of Clause
nine, which is where it's very | 2:30:44 | 2:30:50 | |
difficult to divide the income that
will affect one member of the | 2:30:50 | 2:30:57 | |
household that will then be shared
with another. I will gladly give | 2:30:57 | 2:31:00 | |
way. Thank you very much Madam
Deputy Speaker. I am grateful to the | 2:31:00 | 2:31:10 | |
Minister for his generosity in
giving way and his kind words. I | 2:31:10 | 2:31:14 | |
want to briefly mention that the
Department for Work and Pensions | 2:31:14 | 2:31:17 | |
does produce this kind of modelling
for Social Security change which can | 2:31:17 | 2:31:22 | |
be similarly complex, looking at the
interaction with different aspects, | 2:31:22 | 2:31:27 | |
therefore why should the Treasury
take a different approach? If there | 2:31:27 | 2:31:31 | |
was ambiguity, this could be
cleared. I thank the honourable lady | 2:31:31 | 2:31:34 | |
for her intervention. I bring her
back to New Clause 9 because | 2:31:34 | 2:31:40 | |
whatever the WP appears to be doing
and whether that is right or wrong | 2:31:40 | 2:31:43 | |
or works, it is New Clause 9 we look
at and as I am working through New | 2:31:43 | 2:31:50 | |
Clause 9, what I am arguing is that
it is not a practical way to seek to | 2:31:50 | 2:31:54 | |
achieve what the opposition are
intending to achieve. If we look at | 2:31:54 | 2:32:02 | |
subsection three... I will certainly
give way to my right honourable | 2:32:02 | 2:32:04 | |
friend. Can I wear to be said about
the extent of research the Treasury | 2:32:04 | 2:32:13 | |
does already published. It is my
understanding that there are more | 2:32:13 | 2:32:17 | |
than 2500 Treasury papers already
published and it's more a question, | 2:32:17 | 2:32:20 | |
isn't it, where you draw the line?
If a piece of research is very | 2:32:20 | 2:32:26 | |
difficult and very resource
intensive and Taiwan, that is going | 2:32:26 | 2:32:29 | |
to make it less likely to be done
than a straightforward piece? My | 2:32:29 | 2:32:35 | |
honourable friend makes a very
important point and I've already | 2:32:35 | 2:32:41 | |
pointed out, Madam Deputy Speaker,
around the major fiscal events, we | 2:32:41 | 2:32:44 | |
of course do have household
distributional analysis which covers | 2:32:44 | 2:32:50 | |
welfare and taxation and takes
accumulative approach to that | 2:32:50 | 2:32:56 | |
information and is often relied upon
by Government to take some | 2:32:56 | 2:33:00 | |
decisions. But we do also on
individuals, substantial individual | 2:33:00 | 2:33:06 | |
tax and National Insurance
contribution, we also have the tax | 2:33:06 | 2:33:12 | |
impacts and information notes, the
so-called tins, which were | 2:33:12 | 2:33:14 | |
introduced in 2010 and were not
there actually under the last Labour | 2:33:14 | 2:33:21 | |
Government, for example. So there
are a number of things we are doing | 2:33:21 | 2:33:25 | |
both within the context of the major
fiscal events but also on tax by | 2:33:25 | 2:33:32 | |
tax, National bike -- national
insurance by national insurance | 2:33:32 | 2:33:34 | |
basis where we are looking at using
just the kind of information that | 2:33:34 | 2:33:39 | |
informs decisions around equality.
If I can move on now, the third | 2:33:39 | 2:33:44 | |
section of the Clause nine, which is
of course relating to the taxes to | 2:33:44 | 2:33:48 | |
which this analysis would apply. We
have income tax, and I have made the | 2:33:48 | 2:33:54 | |
point about where we are looking at
impacts upon households and we may | 2:33:54 | 2:34:01 | |
raise the personal allowance, as
indeed we did in the last budget to | 2:34:01 | 2:34:07 | |
£11,850. It could be argued that
that disproportionately favours one | 2:34:07 | 2:34:11 | |
sex over another but when you look
at the effect on the household, | 2:34:11 | 2:34:19 | |
income is typically distributed
within families, within a household, | 2:34:19 | 2:34:22 | |
within a family unit and that is
something which is extremely | 2:34:22 | 2:34:27 | |
difficult, I would go so far as to
say impossible, to actually capture. | 2:34:27 | 2:34:31 | |
With great pleasure I give way. He
made this point the last time we | 2:34:31 | 2:34:36 | |
tried to discuss this, and forgive
me but he seems to be assuming a man | 2:34:36 | 2:34:44 | |
and women, had he managed to get his
head around single women yet because | 2:34:44 | 2:34:49 | |
we see is that women's in cartons
are disproportionately hit by | 2:34:49 | 2:34:55 | |
Government policies, so he could at
least try to measure those women | 2:34:55 | 2:34:59 | |
rather than those who do not live
with a man and confuse him. If the | 2:34:59 | 2:35:05 | |
honourable lady can come up with a
way of identifying those women, we | 2:35:05 | 2:35:08 | |
will probably make some progress.
The point I am making is that this | 2:35:08 | 2:35:14 | |
is riddled with huge complexity and
what New Clause 9 is seeking to | 2:35:14 | 2:35:18 | |
achieve is to present assessments
which have the Emperor martyr of | 2:35:18 | 2:35:21 | |
Government and the Treasury upon
them and they are relied upon to | 2:35:21 | 2:35:27 | |
take very important decisions and
arguments I am prosecuting suggest | 2:35:27 | 2:35:30 | |
that we would end up with an
incomplete picture that could | 2:35:30 | 2:35:37 | |
actually be misleading to what I
know the honourable lady is trying | 2:35:37 | 2:35:46 | |
to achieve and the Government also.
I give way to my honourable friend. | 2:35:46 | 2:35:51 | |
Does he share the view that has been
expressed by many of us this | 2:35:51 | 2:35:54 | |
afternoon that while those on the
benches opposite are looking for | 2:35:54 | 2:35:59 | |
very complicated analysis which we
may not need, we actually have a | 2:35:59 | 2:36:06 | |
very strong record if you take a
step back of reducing inequality and | 2:36:06 | 2:36:11 | |
making things better for those on
the lowest incomes? My honourable | 2:36:11 | 2:36:16 | |
friend makes an extremely important
point and of course we know that the | 2:36:16 | 2:36:20 | |
gender pay gap is at its lowest on
record. I think that's a very | 2:36:20 | 2:36:26 | |
substantial achievement and we are
making considerable headway in that | 2:36:26 | 2:36:32 | |
particular respect. But to look at
some of the other taxes here, we | 2:36:32 | 2:36:39 | |
have employment, disguised
remuneration, a highly compensated | 2:36:39 | 2:36:45 | |
area as my honourable friend the
Member for cities will know as we | 2:36:45 | 2:36:53 | |
have discussed this on many
occasions. I find my mind-boggling | 2:36:53 | 2:36:59 | |
on how we would undertake that
particular taxation. Pension | 2:36:59 | 2:37:05 | |
schemes, once again, extremely
compensated. Passenger duty perhaps | 2:37:05 | 2:37:08 | |
easier than some others. The point
overall, and we do need to look at | 2:37:08 | 2:37:14 | |
this New Clause in its entirety, it
is extremely complicated indeed. | 2:37:14 | 2:37:20 | |
Could we perhaps just say one final
thing about New Clause 9 and the | 2:37:20 | 2:37:24 | |
debate we have had this afternoon?
There should be no doubt that this | 2:37:24 | 2:37:29 | |
side of the House is entirely
committed to ensuring that the drive | 2:37:29 | 2:37:34 | |
for equality through gender and we
drive it very strongly. We should | 2:37:34 | 2:37:41 | |
look to our own record in that
respect. We now have more women in | 2:37:41 | 2:37:44 | |
work than at any time in our
history. In the last year, 60% of | 2:37:44 | 2:37:50 | |
employment growth came from female
employment. We have the lowest | 2:37:50 | 2:37:52 | |
gender pay gap in full-time
employment ever. Those companies | 2:37:52 | 2:38:03 | |
employing 250 people are now
required by law to provide that | 2:38:03 | 2:38:07 | |
gender wage audit and contrary to
what the lady opposite has | 2:38:07 | 2:38:16 | |
suggested, there are teeth, there
are penalties that can be applied by | 2:38:16 | 2:38:20 | |
the EH see our as there are signs
that can follow where that is not | 2:38:20 | 2:38:26 | |
done. For those that are disabled,
we have spent a record in excess of | 2:38:26 | 2:38:30 | |
£50 billion a year on benefits and
as has been said by a number of | 2:38:30 | 2:38:35 | |
members, the National wage has
helped disproportionately the number | 2:38:35 | 2:38:42 | |
of needy in our society. When we
talk about inequality on this side | 2:38:42 | 2:38:45 | |
of the House, we mean it when we say
we want to end it and I urge the | 2:38:45 | 2:38:51 | |
House to reject New Clause 9. Thank
you Madam Deputy Speaker. Having a | 2:38:51 | 2:38:57 | |
detailed understanding of how policy
choices exacerbate or eliminate | 2:38:57 | 2:39:02 | |
inequality at every stage of
policy-making is key to tackling | 2:39:02 | 2:39:05 | |
burning injustices and producing
good policies. Madam Deputy Speaker, | 2:39:05 | 2:39:10 | |
I would like to put New Clause 9 to
the bait. The question is that New | 2:39:10 | 2:39:15 | |
Clause 9 be read a second time. As
many are robbed that opinion say | 2:39:15 | 2:39:21 | |
aye. To the contrary, no. Division,
clear the lobby. | 2:39:21 | 2:39:31 | |
The question is that that the New
Clause be read a second time. As | 2:41:04 | 2:41:10 | |
many that opinion aye. Aye. To the
contrary, no. Ayes to the right, | 2:41:10 | 2:41:20 | |
noes to the left. Tellers for the
ayes are Mr Nick Smith and platinum | 2:41:20 | 2:41:25 | |
Debonair. The tellers for the nose
are Amanda Millie and Rachel Adams. | 2:41:25 | 2:41:32 | |
What the doors. | 2:47:35 | 2:47:36 | |
Order, order. The ayes to the right,
265, the noes to the left, 354. | 2:56:43 | 2:57:01 | |
Thank you. The ayes to the right,
265, the noes to the left, 304, so | 2:57:01 | 2:57:10 | |
the noes have it, the noes have it.
Unlock. We now come to New Clause 3 | 2:57:10 | 2:57:21 | |
with which it would be convenient to
consider the new clauses and | 2:57:21 | 2:57:27 | |
amendments listed on the selection
paper. Peter down to move New Clause | 2:57:27 | 2:57:31 | |
3. Thank you, Madam Deputy Speaker.
I wish to move the amendment in the | 2:57:31 | 2:57:38 | |
name of my right honourable friend,
the Leader of the Opposition, myself | 2:57:38 | 2:57:42 | |
and others on the changes to the
bank levy and particular New Clause | 2:57:42 | 2:57:48 | |
3. Let me start by reiterating what
I said when debating the bank levy. | 2:57:48 | 2:57:54 | |
It said no one -- it says no one
wants to homogenise the banking | 2:57:54 | 2:58:05 | |
services... In fact, around -- 2000
people work in the banking industry | 2:58:05 | 2:58:22 | |
in my constituency and we can't
ignore the important role banks pay | 2:58:22 | 2:58:31 | |
in our society. We should avoid any
bank bashing sessions. We need a | 2:58:31 | 2:58:43 | |
grown-up session to discuss the bank
levy, its effectiveness and why the | 2:58:43 | 2:58:49 | |
Government is now desperate to cut
the levy further. First, let me say | 2:58:49 | 2:58:53 | |
a few words on the political context
surrounding this debate if I can be | 2:58:53 | 2:58:58 | |
indulged slightly. Since we last
debated the bank levy proposed | 2:58:58 | 2:59:02 | |
changes, there have been further
developments that... We have had the | 2:59:02 | 2:59:14 | |
resignation of the Prime Minister's
Deputy, I Cabinet reshuffle which | 2:59:14 | 2:59:19 | |
showed the Secretary of State for
Health refusing to budge, someone | 2:59:19 | 2:59:25 | |
moving to the backbenches instead of
moving to the DWP and the Secretary | 2:59:25 | 2:59:31 | |
of State for Transport was wrongly
announced as the party chairman. It | 2:59:31 | 2:59:34 | |
goes to the heart of the
Government's compensate in regards | 2:59:34 | 2:59:38 | |
to the banking levy. In a recent
black-and-white dinner fundraiser at | 2:59:38 | 2:59:42 | |
which the banking at that and owl
review of the banking levy was no | 2:59:42 | 2:59:48 | |
doubt discussed held at the Natural
History Museum where evidently live | 2:59:48 | 2:59:53 | |
dinosaurs visited dead dinosaurs,
the Prime Minister addressing the | 2:59:53 | 2:59:58 | |
Jurassic attendees said, we are
fighting to win the battle of ideas | 2:59:58 | 3:00:06 | |
to fight socialism today. The
question is how they plan to defeat | 3:00:06 | 3:00:12 | |
socialism in the age of the Internet
and things, well, they held a | 3:00:12 | 3:00:18 | |
raffle. At £100 per ticket, they
rattled whilst discussing the | 3:00:18 | 3:00:22 | |
banking levy and relating issues,
they Rav and eight gun 500 thousand | 3:00:22 | 3:00:30 | |
shoot donated by a donor who knows
all about the banking levy. | 3:00:30 | 3:00:48 | |
Remaining united in Parliament is an
important part of remain -- of | 3:00:48 | 3:00:55 | |
ensuring that Jeremy Corbyn remains
in opposition. | 3:00:55 | 3:01:11 | |
No red box, no changes and no
embarrassing U-turn is either. And | 3:01:22 | 3:01:31 | |
an inability to talk about the
banking levy and how we could go | 3:01:31 | 3:01:35 | |
forward with that particular issue.
So rather than outline a long-term | 3:01:35 | 3:01:40 | |
financial plan, we have yet another
Finance Bill engineered for the | 3:01:40 | 3:01:44 | |
benefit of the few. And there is
little in the bill to tackle our | 3:01:44 | 3:01:49 | |
dreadful productivity performance,
our stuttering growth, our high | 3:01:49 | 3:01:52 | |
inflation and lack of investment in
our infrastructure and people which, | 3:01:52 | 3:01:56 | |
if we raised more from the banking
levy, we could do something about. | 3:01:56 | 3:02:01 | |
Madam Deputy Speaker, in this
context, the Government comes up | 3:02:01 | 3:02:04 | |
with the bright idea of offering
another tax break to the banks by | 3:02:04 | 3:02:08 | |
further limiting the scope of the
bank levy and this would ensure that | 3:02:08 | 3:02:12 | |
banks from Twenty20 will pay the
levy only on their UK balance | 3:02:12 | 3:02:19 | |
sheets, not on their overseas
activities. Our opposition to the | 3:02:19 | 3:02:23 | |
bank levy has been clear, we have
consistently argued for a more | 3:02:23 | 3:02:29 | |
proportional bank levy and pointed
out that the levy introduced in 2011 | 3:02:29 | 3:02:35 | |
would raise substantially less than
Labour's bankers bonus, in other | 3:02:35 | 3:02:40 | |
words we have always stood against
the fetish in relation to posterity. | 3:02:40 | 3:02:44 | |
I am more than happy to give way. I
thank the gentleman for giving way | 3:02:44 | 3:02:48 | |
but I must gently point out that his
party's position on the banking levy | 3:02:48 | 3:02:53 | |
has been anything but clear. When it
was first introduced, they opposed | 3:02:53 | 3:02:58 | |
it, then they called forehead to be
retained in place and the amendments | 3:02:58 | 3:03:01 | |
today, they neither propose to
retain or abolish it, said his | 3:03:01 | 3:03:06 | |
party's position is entirely unclear
and perhaps it could take this | 3:03:06 | 3:03:12 | |
opportunity to clarify it? We
opposed it because it was a | 3:03:12 | 3:03:15 | |
reduction in the taxes banks were
paying. I know the honourable | 3:03:15 | 3:03:19 | |
gentleman wants to be generous with
people who've already got money and | 3:03:19 | 3:03:23 | |
very ungenerous to people who
haven't got money, but he should | 3:03:23 | 3:03:27 | |
really give considerable thought to
that before he intervenes on these | 3:03:27 | 3:03:31 | |
matters because he doesn't do his
party anything on their reputation | 3:03:31 | 3:03:34 | |
because that approach is mean and
miserly. What we voted against in | 3:03:34 | 3:03:42 | |
2011, the Finance Bill which
introduced the banking levy along | 3:03:42 | 3:03:45 | |
with cuts to corporation tax with
tax breaks to the most well off, | 3:03:45 | 3:03:49 | |
that is the context I would say to
the honourable gentleman and that is | 3:03:49 | 3:03:53 | |
why we also expressed our concern in
2015 over the Government pollock | 3:03:53 | 3:03:57 | |
cuts to the bank levy and the
introduction of the corporation tax | 3:03:57 | 3:04:01 | |
surcharge why we would vote against
this measure in the bill today. And | 3:04:01 | 3:04:06 | |
we support the honourable member for
Walthamstow, who will I suspect | 3:04:06 | 3:04:11 | |
called for a review about the
provisions for excess profits of PFI | 3:04:11 | 3:04:18 | |
company for the purpose of
qualifying worldwide groups in | 3:04:18 | 3:04:26 | |
taxation and other provisions act,
it is a step in the direction which | 3:04:26 | 3:04:30 | |
we support in tackling the whole
construct of PFI schemes. Back to | 3:04:30 | 3:04:38 | |
the bank levy, the bank levy was not
the brainchild of a Conservative | 3:04:38 | 3:04:42 | |
Government, it was not introduced by
the previous Chancellor who was | 3:04:42 | 3:04:45 | |
suddenly moved by public | 3:04:45 | 3:04:56 | |
outrage, and to alongside the banks
plunged us into such difficulties in | 3:04:58 | 3:05:06 | |
modern times. It was designed to
ensure banks got massive pay-outs as | 3:05:06 | 3:05:13 | |
happened with the Royal Bank of
Scotland, it was designed to make | 3:05:13 | 3:05:18 | |
sure they pay their fair share and I
refer you to the explanatory notes | 3:05:18 | 3:05:22 | |
where that is laid out clearly and
unambiguously. The very concept of a | 3:05:22 | 3:05:28 | |
bank levy was developed at the G20
summit in 2009, Madam Deputy | 3:05:28 | 3:05:33 | |
Speaker. It was championed by the
previous Labour Government who | 3:05:33 | 3:05:38 | |
subsequently introduced the bankers
bonus. In 2011, the Government | 3:05:38 | 3:05:47 | |
dumped the bankers bonus tax and
adopted the bank levy. At that time, | 3:05:47 | 3:05:52 | |
Labour made it clear that the
threshold was far too low in | 3:05:52 | 3:05:55 | |
proportion to the money that would
have been raised if the Government | 3:05:55 | 3:05:59 | |
stuck with Labour's bonus tax.
Instead, ministers folded under | 3:05:59 | 3:06:03 | |
pressure from the banks and set the
levy at a low rate of 2.6 billion. | 3:06:03 | 3:06:09 | |
The threshold was established and
here we come to the issue of taking | 3:06:09 | 3:06:13 | |
expert advice. The threshold was
established despite Treasury | 3:06:13 | 3:06:22 | |
officials knowing it was far too hot
low. Under original plans, it would | 3:06:22 | 3:06:27 | |
have raised £3.9 billion a year,
£1.3 billion more than the 2.6 | 3:06:27 | 3:06:34 | |
billion currently indicated. The
Government lobbied by the privileged | 3:06:34 | 3:06:37 | |
few ensured the threshold remains
low. 0.39% for long-term | 3:06:37 | 3:06:46 | |
liabilities, the level set was not,
to put too fine a point on it, a | 3:06:46 | 3:06:52 | |
pretty tasteless joke when compared
to another country who introduced a | 3:06:52 | 3:06:57 | |
similar levy. It was less than one
third of France's level, | 3:06:57 | 3:07:02 | |
substantially smaller than Hungary's
and even lower than that of the | 3:07:02 | 3:07:08 | |
United States of America. And in
2015 under pressure from the | 3:07:08 | 3:07:12 | |
ministers and the Government's
friends, some of them in the back | 3:07:12 | 3:07:16 | |
sector, once more the Chancellor cut
the bank levy rate and the current | 3:07:16 | 3:07:23 | |
occupant of number 11 has continued
on the same social, ensuring that by | 3:07:23 | 3:07:31 | |
2020 the UK's biggest banks will
have received a tax giveaway worth a | 3:07:31 | 3:07:37 | |
whopping £4.7 billion, £4.7 billion
that could have been spent on public | 3:07:37 | 3:07:42 | |
services, notably on children
services for example which have been | 3:07:42 | 3:07:45 | |
cut to the bone. The honourable
gentleman says the banking sector | 3:07:45 | 3:07:52 | |
has received a whacking tax cut. I
would dispute that in my comments | 3:07:52 | 3:07:55 | |
later but the figures are being
used. In 2000 and paid three point | 3:07:55 | 3:08:06 | |
£10 billion, last year there was a
25% increase, so they are paying | 3:08:06 | 3:08:14 | |
more by some amount. That's not
surprising because they've returned | 3:08:14 | 3:08:19 | |
to profitability because the public,
the taxpayer, bankrolled the banks. | 3:08:19 | 3:08:24 | |
That is why they are back into
profitability and they ought to pay | 3:08:24 | 3:08:28 | |
their fair share as a result of
taxpayers, every member of | 3:08:28 | 3:08:34 | |
Parliament's constituent in this
House paid towards that. When those | 3:08:34 | 3:08:37 | |
profits came in, it was not
surprising that they would go up | 3:08:37 | 3:08:40 | |
because we helped them out and they
have got to help our public services | 3:08:40 | 3:08:44 | |
out. That is the fact of the matter.
The Government introduced the 8% | 3:08:44 | 3:08:51 | |
corporation tax surcharge which they
claimed would offset the reduction | 3:08:51 | 3:08:54 | |
to the bank levy. If we look at the
forecast from the Bob ER, we can | 3:08:54 | 3:09:00 | |
clearly see that the surcharge will
not match the ball in the bank levy. | 3:09:00 | 3:09:04 | |
Under the forecasts, the surcharge
increases by 0.3 billion pounds a | 3:09:04 | 3:09:18 | |
year, whilst the levy falls by 7p a
year. That is about printed in the | 3:09:18 | 3:09:25 | |
-- was the levy falls by 7p a year.
That is a fact printed in the | 3:09:25 | 3:09:33 | |
Government's book. We are told there
was no money for productive | 3:09:33 | 3:09:41 | |
investment and that austerity must
continue yet the Government has | 3:09:41 | 3:09:45 | |
conspired to undermine any
remuneration from the banks that | 3:09:45 | 3:09:52 | |
caused this sorry state of affairs
in the first place. Once again, the | 3:09:52 | 3:09:55 | |
opposition is hamstrung by the
Government use of parliamentary | 3:09:55 | 3:10:01 | |
procedure. The last occupant in the
Treasury left a note for the | 3:10:01 | 3:10:10 | |
incoming Conservative Liberal
coalition Government in 2010 and | 3:10:10 | 3:10:14 | |
isn't the reality that of course
there is money, we raise taxes and | 3:10:14 | 3:10:19 | |
we spend unwisely as a Conservative
Government, in particular in | 3:10:19 | 3:10:23 | |
infrastructure, which surely be
honourable gentleman would agree is | 3:10:23 | 3:10:26 | |
now at record levels. It's just that
we are still having to clear up the | 3:10:26 | 3:10:30 | |
mess left by that last Labour
Government. The honourable lady can | 3:10:30 | 3:10:34 | |
believe what she wants. The fact of
the matter is, who's going to pay | 3:10:34 | 3:10:38 | |
much attention to a former Chief
Secretary to the Treasury who took | 3:10:38 | 3:10:49 | |
heart from the former chief
secretary of the Treasury was out of | 3:10:49 | 3:10:57 | |
that job because of issues around
his parliamentary expenses and you | 3:10:57 | 3:11:01 | |
expect us to pay no attention to
that whatsoever. That's what | 3:11:01 | 3:11:05 | |
happened. David Laws... I'm not
going to give way. I'm going to | 3:11:05 | 3:11:10 | |
carry on. This isn't a dialogue, I
believe, Madam Deputy Speaker, as he | 3:11:10 | 3:11:15 | |
would no doubt tell me. If we have a
timid, feckless Government ashamed | 3:11:15 | 3:11:22 | |
and frightened of its own Shadow who
is continuing to give more money | 3:11:22 | 3:11:30 | |
back to the banks, notwithstanding
the fact that they keep on telling | 3:11:30 | 3:11:32 | |
us that there isn't sufficient
resource coming in to support public | 3:11:32 | 3:11:38 | |
services. So by moving New Clause 3,
we seek first to require the | 3:11:38 | 3:11:43 | |
Government to carry out a review of
the bank levy including its | 3:11:43 | 3:11:47 | |
effectiveness in relation to its
stated aim. Secondly, we seek to | 3:11:47 | 3:11:52 | |
establish the extent of cuts made in
2015 on the revenues from the levy. | 3:11:52 | 3:11:57 | |
Thirdly, to calculate how much would
have been raised had the Government | 3:11:57 | 3:12:01 | |
stuck with Labour's bankers bonus
tax. Now, such a report would put | 3:12:01 | 3:12:06 | |
under the microscope for all to see
the Government's malpractice, | 3:12:06 | 3:12:10 | |
because that's what it amounts to,
whilst offering tax giveaways to the | 3:12:10 | 3:12:16 | |
banks who can more than afford them.
It would require the Minister to | 3:12:16 | 3:12:21 | |
acknowledge that far more would have
been raised under Labour's bankroll | 3:12:21 | 3:12:25 | |
tax and just as importantly that the
current levy has done little to | 3:12:25 | 3:12:30 | |
influence and mitigate questionable
practices in our financial services | 3:12:30 | 3:12:36 | |
industry. It's surprisingly
indicative of the bread that they | 3:12:36 | 3:12:39 | |
have failed to keep records of banks
that regularly pay the levy and a | 3:12:39 | 3:12:44 | |
full list of how much they actually
have paid and we would like that | 3:12:44 | 3:12:48 | |
information in our new clauses. That
is why in the name of transparency, | 3:12:48 | 3:12:51 | |
a concept alien to the Government, I
have got to say, the opposition has | 3:12:51 | 3:12:56 | |
tabled an amendment seeking to
create a public register for the | 3:12:56 | 3:12:59 | |
bank levy. | 3:12:59 | 3:13:03 | |
Once we can see the true cost we can
grasp the extent of the choices they | 3:13:03 | 3:13:07 | |
have been making and how they have
favoured a small, privileged group | 3:13:07 | 3:13:12 | |
over the many citizens who are in
desperate need of support and this | 3:13:12 | 3:13:16 | |
goes to the heart of this new
clause. The concerns I had set out | 3:13:16 | 3:13:21 | |
regarding the banking levy are not a
question of how the banking sector | 3:13:21 | 3:13:24 | |
is taxed and regulated, but they
speak directly to the approach of | 3:13:24 | 3:13:30 | |
this government. Government is in
the business of making choices. In | 3:13:30 | 3:13:34 | |
this case, the government has chosen
a giveaway with billions of pounds | 3:13:34 | 3:13:37 | |
to the wealthy few instead of
helping to lend austerity for the | 3:13:37 | 3:13:45 | |
many. Or, for even a few of the
many. This is a shameful set of | 3:13:45 | 3:13:50 | |
affairs looking at it from any
angle. The money going to banks from | 3:13:50 | 3:13:55 | |
a cut to their levy could be used to
support children's services, which | 3:13:55 | 3:14:01 | |
are in a state of atrophy as a
direct result of the government's | 3:14:01 | 3:14:05 | |
choices. Only in the last few days,
the government admitted that the | 3:14:05 | 3:14:11 | |
honourable member for Batley and
Spen, the cash-strapped local | 3:14:11 | 3:14:14 | |
authorities have been forced to
close over 500 children's centres. | 3:14:14 | 3:14:20 | |
This is a direct result of funding
cuts to children's services, | 3:14:20 | 3:14:28 | |
research published by Barnardos in
December found that funding for | 3:14:28 | 3:14:33 | |
children's centres in England have
been halved by 1.2 billion up to 600 | 3:14:33 | 3:14:36 | |
million since 2010. That is why we
want to have a look at the bank | 3:14:36 | 3:14:42 | |
levy. The picture is set to worsen.
Norfolk County Council approved | 3:14:42 | 3:14:48 | |
plans to half the budget for
children's centres to cope with the | 3:14:48 | 3:14:52 | |
cuts being passed on to them by the
government. On the same day, | 3:14:52 | 3:14:57 | |
councils in Somerset agreed plans to
close two thirds of children's | 3:14:57 | 3:15:01 | |
centres. That is why we want to look
up the banking levy and have a | 3:15:01 | 3:15:05 | |
review of this. We don't have an
assessment of the specific impact of | 3:15:05 | 3:15:11 | |
the austerity in Northamptonshire.
The council Burke, the Conservative | 3:15:11 | 3:15:16 | |
council is facing meltdown as a
direct result of the government's | 3:15:16 | 3:15:19 | |
agenda. That is why we want to look
at the banking levy. It is safe to | 3:15:19 | 3:15:24 | |
say children, who no doubt will be
suffering as much as the wider | 3:15:24 | 3:15:29 | |
population as public services edge
closer to collapse. As these | 3:15:29 | 3:15:34 | |
services have been decimated, we
have seen a doubling of serious | 3:15:34 | 3:15:37 | |
child protection cases and twice the
number of children put into care | 3:15:37 | 3:15:40 | |
protection plans. That is why we
want to look at this particular | 3:15:40 | 3:15:45 | |
issue, let's have a compare and
contrast. Last year 270,000 children | 3:15:45 | 3:15:50 | |
were placed into care. The support
for foster care, sure start | 3:15:50 | 3:15:55 | |
children's centres have been reduced
and we have got to find out, how can | 3:15:55 | 3:15:59 | |
we support those services. Youth
centres are closing, short breaks | 3:15:59 | 3:16:03 | |
for disabled children, provided by
local authorities to give parents a | 3:16:03 | 3:16:08 | |
break. Is that what we want? That is
why we need to look at the banking | 3:16:08 | 3:16:13 | |
level. The most vulnerable children
in our country are paying the price | 3:16:13 | 3:16:17 | |
for seven years of the government's
economic strategy. Meanwhile, the | 3:16:17 | 3:16:22 | |
banking levy is being cut. That is
why we want to look at it, that is | 3:16:22 | 3:16:27 | |
why we are challenging the
government to come and support our | 3:16:27 | 3:16:31 | |
review. Asking children to pay the
price of giving the banking, | 3:16:31 | 3:16:35 | |
reducing the banking levy is not
acceptable. It is mismanagement and | 3:16:35 | 3:16:41 | |
it is really, really not acceptable.
In fact, said Tony Hawk had | 3:16:41 | 3:16:49 | |
described the devastating cuts which
are being left on a dangerously | 3:16:49 | 3:16:56 | |
sing. And the protection services
provided for through not cutting the | 3:16:56 | 3:17:04 | |
banking level would be a welcome
relief to those particular services. | 3:17:04 | 3:17:09 | |
We are demanding the government
change course on the banking levy. | 3:17:09 | 3:17:12 | |
It might make them unpopular with
some people in the past, but I think | 3:17:12 | 3:17:19 | |
children come first, not their
friends. That is why we are asking | 3:17:19 | 3:17:23 | |
for this particular review. It would
be the right thing to do for | 3:17:23 | 3:17:27 | |
millions of people in this country
who need government support to give | 3:17:27 | 3:17:30 | |
them the best chance in life. Should
the Minister decide to do the right | 3:17:30 | 3:17:34 | |
thing and match Labour's plans to
invest in children's services, he | 3:17:34 | 3:17:39 | |
will receive the backing of this
bench. If I can turn to one of the | 3:17:39 | 3:17:44 | |
clauses in relation to tax
avoidance. The anti-avoidance | 3:17:44 | 3:17:50 | |
measures are feeble and listless
when we consider the problem at | 3:17:50 | 3:17:53 | |
hand. Both the Paradise papers have
revealed tax avoidance on an | 3:17:53 | 3:18:00 | |
industrious scale being operated in
British Overseas Territories and | 3:18:00 | 3:18:03 | |
Crown dependencies. The government
has responded with feigned interest | 3:18:03 | 3:18:07 | |
and a handful of measures. The
Minister in his efforts to keep up | 3:18:07 | 3:18:11 | |
the appearances of being seen to do
something has instead, reinforce the | 3:18:11 | 3:18:15 | |
view this government is on the side
of the tax avoidance and not the | 3:18:15 | 3:18:19 | |
taxpayers. I can hear the minister
chatting away and I am not sure that | 3:18:19 | 3:18:28 | |
is because he doesn't agree with me,
but he does know it is true. There | 3:18:28 | 3:18:33 | |
is no question about that. Only a
third of the £1 billion originally | 3:18:33 | 3:18:38 | |
forecast in some of the measures
they gave to the House will be | 3:18:38 | 3:18:42 | |
raised. So the gap between the tax
take originally expected for the | 3:18:42 | 3:18:49 | |
anti-tax avoidance measures
introduced since 2010 and the | 3:18:49 | 3:18:51 | |
revised forecast is totalled £2.1
billion. 25% less than the Treasury | 3:18:51 | 3:18:59 | |
previously forecast and it is a
complete shambles. I will give way. | 3:18:59 | 3:19:06 | |
I thank him for being generous with
his time. He is trying to suggest | 3:19:06 | 3:19:12 | |
the government has a bad track
record on clamping down avoidance | 3:19:12 | 3:19:16 | |
and evasion. The key measure is the
tax gap. Under the last Labour | 3:19:16 | 3:19:19 | |
government it was 8%. It has now
fallen to 6%, the lowest in the | 3:19:19 | 3:19:25 | |
world. Will the honourable gentleman
congratulate the financial Secretary | 3:19:25 | 3:19:30 | |
and acknowledged this government is
doing a better job in this area than | 3:19:30 | 3:19:34 | |
the last Labour won? It doesn't take
into account international profit | 3:19:34 | 3:19:39 | |
shifting and the honourable
gentleman knows that and he should | 3:19:39 | 3:19:42 | |
consider that. These figures not
only add to the growing hole in our | 3:19:42 | 3:19:47 | |
finances but demonstrate the
government's lack of interest in | 3:19:47 | 3:19:49 | |
taking on tax avoidance. I am glad
the honourable gentleman raised the | 3:19:49 | 3:19:53 | |
question about the last Labour
government's record. What of our | 3:19:53 | 3:20:00 | |
record on tax avoidance, seeing as
he raised the issue. Labour brought | 3:20:00 | 3:20:06 | |
in anti-tax avoidance measures in
1997, 1998, 1999, 2000, 2001, 2002, | 3:20:06 | 3:20:18 | |
2003, 2004, 2005, 2006, 2008, 2009,
2007 and the 2010 budget. In March | 3:20:18 | 3:20:29 | |
2004, the Labour government
introduced a discourse scheme which | 3:20:29 | 3:20:32 | |
required anyone marketing at tax
mitigation scheme to give HMRC | 3:20:32 | 3:20:37 | |
advanced notice. Giving them the
ability to count the scheme with new | 3:20:37 | 3:20:45 | |
legislation. In 2004, it was
announced the government would | 3:20:45 | 3:20:53 | |
introduce legislation with
retrospective counter any future | 3:20:53 | 3:20:55 | |
scheme. So Labour's tax policy and
enforcement programme has outlined | 3:20:55 | 3:21:00 | |
16 measurements the government could
take down immediately to crackdown | 3:21:00 | 3:21:06 | |
on tax avoidance including
publishing a register of offshore | 3:21:06 | 3:21:09 | |
trusts. In that fashion, the
opposition's new clause six would | 3:21:09 | 3:21:13 | |
require the government to commission
a review of effectiveness of | 3:21:13 | 3:21:17 | |
anti-avoidance provisions in the
Finance Bill and their impact in | 3:21:17 | 3:21:20 | |
reducing the tax gap. I am proud of
Labourmeasure in relation to tax | 3:21:20 | 3:21:26 | |
avoidance. I am proud to stand up
here and say that. I just leave | 3:21:26 | 3:21:31 | |
members to ponder over this
question... How can the government | 3:21:31 | 3:21:35 | |
possibly justify cuts in the banking
levy while an average of 30% and | 3:21:35 | 3:21:40 | |
even more, in some constituencies,
of our children live in poverty. | 3:21:40 | 3:21:44 | |
That question will not go away
however much the government wants it | 3:21:44 | 3:21:48 | |
to. Review of operation and
effectiveness of bank levy. The | 3:21:48 | 3:21:58 | |
question is new clause three be read
as second time. Chris Hill. Thank | 3:21:58 | 3:22:03 | |
you. It is, as always, an enormous
pleasure to follow the shadow chief | 3:22:03 | 3:22:12 | |
secretary. His speeches are always
entertaining. They are all so very | 3:22:12 | 3:22:18 | |
occasionally informative as well. It
is nonetheless, a pleasure to follow | 3:22:18 | 3:22:22 | |
him. The honourable gentleman spent
a great deal of time talking about | 3:22:22 | 3:22:25 | |
the bank levy and various new
clauses standing his name on that | 3:22:25 | 3:22:30 | |
topic. I would like to start by
addressing the central thesis of the | 3:22:30 | 3:22:36 | |
honourable gentleman's comments on
the bank levy, which was to suggest | 3:22:36 | 3:22:41 | |
banks are not paying their fair
share, particularly in light of the | 3:22:41 | 3:22:45 | |
fact that two of the banks receive
state money around about 2009. It is | 3:22:45 | 3:22:51 | |
a matter of incontrovertible fact,
banks, as organisations, as | 3:22:51 | 3:22:56 | |
corporate, are today paying more tax
proportionally than other kinds of | 3:22:56 | 3:23:02 | |
corporate some of the kinds of
corporations that are not banks. It | 3:23:02 | 3:23:08 | |
is right that they do that he
mentioned, they did receive taxpayer | 3:23:08 | 3:23:12 | |
money. They pay this extra money,
compared to other businesses in two | 3:23:12 | 3:23:17 | |
ways. That surplus tax of 8%. And of
course the bank levy. Although the | 3:23:17 | 3:23:28 | |
bank levy is being reduced, it will
still remain in force. Banks will | 3:23:28 | 3:23:32 | |
continue to pay proportionately more
tax than non-bank businesses after | 3:23:32 | 3:23:37 | |
the implementation of this budget.
It is a vital point I think to get | 3:23:37 | 3:23:41 | |
across. The honourable gentleman
also tried to make the point that | 3:23:41 | 3:23:47 | |
somehow, he tried to link funding
for children's services to the bank | 3:23:47 | 3:23:52 | |
levy. I gave some figures during one
of my interventions on the total | 3:23:52 | 3:23:55 | |
amount of tax banks are paying. You
can argue about why they pay the | 3:23:55 | 3:24:01 | |
extra tax, it is at least in part,
due to the surplus profit rate and | 3:24:01 | 3:24:06 | |
to the bank levy. It may also be due
to the fact their profits have gone | 3:24:06 | 3:24:10 | |
up. Whatever the cause of that, the
fact is, they are paying seven or £8 | 3:24:10 | 3:24:17 | |
billion a year more in tax now than
they were some time ago. I think | 3:24:17 | 3:24:21 | |
this adjusts children's services
have been deprived of money as a | 3:24:21 | 3:24:29 | |
consequence to bank taxation doesn't
bear scrutiny when the financial | 3:24:29 | 3:24:35 | |
services sector is paying
significantly more tax than it was | 3:24:35 | 3:24:38 | |
before, whatever the cause of that
may be. I will give way. I'm | 3:24:38 | 3:24:41 | |
grateful. He is I think, and he
knows this, unfairly paraphrasing | 3:24:41 | 3:24:50 | |
the shadow chief secretary. What my
honourable friend has pointed out is | 3:24:50 | 3:24:53 | |
politics is about choices and this
government has decided, to the set | 3:24:53 | 3:24:58 | |
of proposals, to reduce, in this
case, the amount of tax the banks | 3:24:58 | 3:25:02 | |
will pay, alongside a situation
where many core services in the | 3:25:02 | 3:25:07 | |
services, public services supported
on both sides of the House are on | 3:25:07 | 3:25:11 | |
their needs. References to the back
rows situation or attempting to | 3:25:11 | 3:25:15 | |
paraphrase what he said, is
incorrect, it is an analysis of the | 3:25:15 | 3:25:19 | |
choices this government have made.
The central fact, the key fact, the | 3:25:19 | 3:25:26 | |
cold, hard fact which won't go away
is financial services are paying | 3:25:26 | 3:25:31 | |
eight or £9 billion more in tax now
than they were before. That is eight | 3:25:31 | 3:25:36 | |
or £9 billion that can be spent on
children's services in his | 3:25:36 | 3:25:41 | |
constituency, and in mine, on the
NHS or schools. We should welcome | 3:25:41 | 3:25:45 | |
the fact the sector is producing
this extra taxation, partly because | 3:25:45 | 3:25:49 | |
it has become more successful and
partly because the rate of tax has | 3:25:49 | 3:25:53 | |
been increased over the last seven
or eight years. The honourable | 3:25:53 | 3:25:56 | |
gentleman made a point about
choices. His intervention was | 3:25:56 | 3:26:03 | |
underpinned by an assumption. The
assumption he made in his | 3:26:03 | 3:26:09 | |
intervention, was that if you
increase the rate of taxation, you | 3:26:09 | 3:26:14 | |
invariably raise more revenue. I
would challenge that assertion. The | 3:26:14 | 3:26:20 | |
famous Laffer curve that challenges
that assumption, it is possible to | 3:26:20 | 3:26:27 | |
reduce the rate of taxation and at
the same time collect more tax. | 3:26:27 | 3:26:31 | |
Because you incentivise investment
and growth. There is no better | 3:26:31 | 3:26:36 | |
illustration of that than the
trajectory of corporation tax taken | 3:26:36 | 3:26:39 | |
as a whole over the last seven
years, where the rate of corporation | 3:26:39 | 3:26:43 | |
tax has come down from 28% down to
19%, heading down to 17% in a couple | 3:26:43 | 3:26:50 | |
of years. The cash taken corporation
tax over that same period has gone | 3:26:50 | 3:26:56 | |
from 35 billion up to 53 or 55
billion. You can cut the rate of tax | 3:26:56 | 3:27:01 | |
and by stimulating the economy and
investment, you can collect more | 3:27:01 | 3:27:05 | |
money. Similarly, it doesn't follow
that if you put the rate of tax up, | 3:27:05 | 3:27:10 | |
you necessarily collect more money
because you made this incentivise | 3:27:10 | 3:27:13 | |
investment and job creation. I will
give way. | 3:27:13 | 3:27:19 | |
We have had this discussion in many
finance bills that we have discussed | 3:27:19 | 3:27:22 | |
over the last 12 months. No one on
either side of the House denies the | 3:27:22 | 3:27:27 | |
existence of the Laffer curve. We
simply point out as a fact that the | 3:27:27 | 3:27:33 | |
corporation tax that the government
has introduced has cost this company | 3:27:33 | 3:27:39 | |
country revenue. Specifically onto
this amendment, the bank levy is a | 3:27:39 | 3:27:49 | |
levy on the risk assessed capital on
the balance sheet of the big banks. | 3:27:49 | 3:27:55 | |
This would not apply to the
calculation of what the return would | 3:27:55 | 3:27:58 | |
be. I will take each of those two
points in turn. The honourable | 3:27:58 | 3:28:05 | |
gentleman says that if the rate
remained at 20% we would be | 3:28:05 | 3:28:12 | |
collecting more than 23 billion.
That is an assertion and it is not | 3:28:12 | 3:28:16 | |
one which I agree without
contention. For example, plenty of | 3:28:16 | 3:28:21 | |
businesses that made investments
owing to love corporation tax which | 3:28:21 | 3:28:24 | |
way would not have otherwise done. A
number of corporations and company | 3:28:24 | 3:28:28 | |
which had located there headquarters
outside the UK and therefore paid | 3:28:28 | 3:28:36 | |
corporation tax outside the UK who
in response to cutting the rate of | 3:28:36 | 3:28:40 | |
tax have come back on shore and now
paid corporation tax here. I do not | 3:28:40 | 3:28:45 | |
think it follows at all that a
higher rate of corporation tax, 28% | 3:28:45 | 3:28:49 | |
in the case that he mentions, was
leads to a higher tax yield. The | 3:28:49 | 3:28:54 | |
evidence and the direction of travel
shows that as the rate comes down | 3:28:54 | 3:28:58 | |
the collective goes up. I just do
not agree with this as the rate | 3:28:58 | 3:29:01 | |
comes down the collective goes up. I
just do not agree be collecting 70 | 3:29:01 | 3:29:08 | |
or 80 billion. I do not agree. On
the question specifically of the | 3:29:08 | 3:29:14 | |
bank levy, the honourable gentleman
suggested that because it is a tax | 3:29:14 | 3:29:19 | |
on a balance sheet, again, I dispute
that. Banks are mostly | 3:29:19 | 3:29:24 | |
international. HSBC for example, our
largest bank, is a very | 3:29:24 | 3:29:28 | |
international bank, they can choose
where they deploy capital. Their | 3:29:28 | 3:29:32 | |
finance director will sit on the
side where to allocate capital | 3:29:32 | 3:29:35 | |
around the world. If the taxation of
regulatory regime in a particular | 3:29:35 | 3:29:40 | |
jurisdiction leads to the return of
that jurisdiction being | 3:29:40 | 3:29:46 | |
unattractive, they will respond that
is by allocating their resources, in | 3:29:46 | 3:29:50 | |
this case their banking equity,
somewhere else. I think there is | 3:29:50 | 3:29:53 | |
unquestionably an affect to the bank
levy. This does actually linked to a | 3:29:53 | 3:30:04 | |
related point. One that the shadow
chief secretary mentioned. That is | 3:30:04 | 3:30:08 | |
the disaggregation of the bank levy
to the non-UK part of a UK | 3:30:08 | 3:30:14 | |
headquartered bank 's balance sheet.
In these international times it is a | 3:30:14 | 3:30:21 | |
matter of choice for a bank like
HSBC to decide where its | 3:30:21 | 3:30:26 | |
headquarters are. In particular, in
relation, they were famously | 3:30:26 | 3:30:29 | |
thinking of moving to a three years
ago. And particular in relation to | 3:30:29 | 3:30:35 | |
their non-UK assets. The majority of
their balance sheets is non-UK. They | 3:30:35 | 3:30:39 | |
have huge operations in Africa and
the far east. Were we to continue | 3:30:39 | 3:30:42 | |
levering the bank levy on their
non-UK balance sheet, there would be | 3:30:42 | 3:30:47 | |
a powerful, perhaps even
irresistible temptation for them to | 3:30:47 | 3:30:52 | |
change their arrangements such that
those profits and balance sheet were | 3:30:52 | 3:30:58 | |
booked through some other centre
like Shanghai or more likely Hong | 3:30:58 | 3:31:01 | |
Kong or possibly Singapore. So it is
beneficial for the UK to have those | 3:31:01 | 3:31:07 | |
assets books here because we get to
the corporation tax, including the | 3:31:07 | 3:31:10 | |
corporation tax surcharge to books
through London. Clearly there are | 3:31:10 | 3:31:15 | |
jobs connected with that as well.
But if you leave the bank levy on | 3:31:15 | 3:31:19 | |
the non-UK balance sheet and we
drive that business overseas. The | 3:31:19 | 3:31:23 | |
businesses overseas are ready but if
it is books here. If we drive the | 3:31:23 | 3:31:27 | |
business overseas we will lose the
corporation tax and the jobs. This | 3:31:27 | 3:31:32 | |
is a sensible corporation measure
which protects London's status as a | 3:31:32 | 3:31:37 | |
financial centre. That's part of the | 3:31:37 | 3:31:39 | |
balance sheet is very
internationally mobile. I will take | 3:31:39 | 3:31:41 | |
all the interventions now. This is
integral arguments to the economic | 3:31:41 | 3:31:49 | |
prosperity to the UK. On the point
he has raised, we would seek to keep | 3:31:49 | 3:31:55 | |
the substantial national asset in
the UK. It is Brexit that will drive | 3:31:55 | 3:31:58 | |
it away. HSBC was Mac plans at the
moment are entirely linked to the | 3:31:58 | 3:32:03 | |
banking conditions on Brexit. If
there was one phrase I would like to | 3:32:03 | 3:32:08 | |
etch onto the door this chamber it
is causation and correlation are not | 3:32:08 | 3:32:12 | |
the same thing. That replies to to
the honourable gentleman's argument. | 3:32:12 | 3:32:19 | |
25% is the rate in most countries.
Even conservative councils are | 3:32:19 | 3:32:26 | |
effectively going bankrupt here.
Surely that requires a greater | 3:32:26 | 3:32:29 | |
degree of reflection and self
analysis. Of the disastrous tax | 3:32:29 | 3:32:36 | |
policies of the government over the
past two years. On the point about | 3:32:36 | 3:32:41 | |
correlation and causation, of course
I understand that correlation and | 3:32:41 | 3:32:44 | |
causation are not the same things.
However, I said that corporation tax | 3:32:44 | 3:32:49 | |
reductions points to some of the
causal links. The two causal links I | 3:32:49 | 3:32:53 | |
cited were firstly encouraging
investment, the second was for | 3:32:53 | 3:32:59 | |
companies to choose to move their
domicile for example from | 3:32:59 | 3:33:02 | |
Switzerland back to the UK. There
are two causal explanations as to | 3:33:02 | 3:33:08 | |
why a reduction in the rate of tax
might lead to a reduction in the | 3:33:08 | 3:33:12 | |
rate of tax yield. New clause three
says that this new clause allows the | 3:33:12 | 3:33:21 | |
government to carry out a banking
levy including its effectiveness and | 3:33:21 | 3:33:26 | |
the changes made in 2015 and the
comparable effectiveness of the | 3:33:26 | 3:33:30 | |
bankrupt tax. The stated aims are
set out in the government's | 3:33:30 | 3:33:33 | |
documents. Banks and building
societies make a fair contribution | 3:33:33 | 3:33:39 | |
reflecting the risks they pose etc.
We are asking for a rebuke. If the | 3:33:39 | 3:33:44 | |
honourable gentleman is so sure and
his case, why not let have the | 3:33:44 | 3:33:50 | |
review and see who's right in this
debate? The government conducts | 3:33:50 | 3:33:56 | |
analyses and reviews of the whole
time. I'm not sure you need to put | 3:33:56 | 3:33:59 | |
the face of primary legislation.
Since the honourable gentleman makes | 3:33:59 | 3:34:05 | |
reference to the new clauses. New
clause three, new clause four and | 3:34:05 | 3:34:09 | |
new clause three I think which stand
in his name, I will turn now to | 3:34:09 | 3:34:14 | |
those. The clauses as the gentleman
says call for various reviews and | 3:34:14 | 3:34:21 | |
various registers. Of course,
analysis is important. That analysis | 3:34:21 | 3:34:25 | |
I believe takes place in the
Treasury already. I'm sure the | 3:34:25 | 3:34:29 | |
financial Secretary will comment on
that in due course. What is | 3:34:29 | 3:34:32 | |
interesting is that in this set of
clauses which has been tabled by the | 3:34:32 | 3:34:40 | |
opposition is not so much what is in
them but what is not in them. It is | 3:34:40 | 3:34:44 | |
the dog that did not bark if I could
borrow from Sir Arthur Conan Doyle. | 3:34:44 | 3:34:48 | |
I mention an intervention that the
Labour Party are meant to have taken | 3:34:48 | 3:34:54 | |
a number of positions on the bank
levy. Voting against it in 2011, | 3:34:54 | 3:34:59 | |
against the surplus tax in 2015 and
then stating in public that they | 3:34:59 | 3:35:04 | |
wish to leave those things and leave
the bank levy in place despite | 3:35:04 | 3:35:07 | |
having voted against its
introduction. I'm rather confused. I | 3:35:07 | 3:35:14 | |
was rather hoping that they might
enlighten us as to what their | 3:35:14 | 3:35:18 | |
position actually was on the bank
levy. This is primary legislation, | 3:35:18 | 3:35:23 | |
the Finance Bill, soon to become the
Finance Acts, I hope, the opposition | 3:35:23 | 3:35:27 | |
had a chance in this chamber today
to explain to the House and to the | 3:35:27 | 3:35:30 | |
country how they think our tax
system should work in relation to | 3:35:30 | 3:35:34 | |
the bank levy. They could have
tables had they chosen to an | 3:35:34 | 3:35:37 | |
amendment saying they wanted to
leave the bank levy in place as it | 3:35:37 | 3:35:40 | |
was. They could have tabled an
amendment abolishing it altogether. | 3:35:40 | 3:35:44 | |
Yet they have done none of those
things. They have simply called for | 3:35:44 | 3:35:51 | |
analysis. I am disappointed their
plans have not been brought up. I | 3:35:51 | 3:36:01 | |
will give way. The gentleman cannot
have it both wait. The government | 3:36:01 | 3:36:07 | |
introduced an arcane procedure first
used by Winston Churchill in 1920 to | 3:36:07 | 3:36:10 | |
stop is moving substantive
amendments. Whatever he wants us to | 3:36:10 | 3:36:17 | |
do, does he recognise that we would
not be able to change it anyway. I | 3:36:17 | 3:36:21 | |
am not sure. This is a moment when
the honourable member for North East | 3:36:21 | 3:36:28 | |
Somerset is required to advise on
such matters. I do not share his | 3:36:28 | 3:36:32 | |
level of expertise. In parliamentary
procedure. But I do note that the | 3:36:32 | 3:36:40 | |
shadow chief secretary's extensive
and amusing remarks he did not | 3:36:40 | 3:36:45 | |
specify the Labour Party's official
position on the bank levy. There are | 3:36:45 | 3:36:51 | |
certainly no party procedure that
prohibits him from doing so. He | 3:36:51 | 3:36:54 | |
could quite easily have chosen to
specify exactly what his view was. | 3:36:54 | 3:36:58 | |
Should it continue as it is, should
it go or should it go somewhere | 3:36:58 | 3:37:03 | |
else. But he did not do so. So I am
disappointed by the lack of clarity | 3:37:03 | 3:37:07 | |
on that point. His colleague in one
of his many interventions said a few | 3:37:07 | 3:37:12 | |
moments ago that HSBC might
contemplate their jurisdiction in | 3:37:12 | 3:37:19 | |
light of Brexit. Of course, in fact
HSBC were debating where to domicile | 3:37:19 | 3:37:23 | |
themselves well before the
referendum. I must say that if | 3:37:23 | 3:37:31 | |
anyone or if anything threatens the
City of London's status as a global | 3:37:31 | 3:37:36 | |
financial centre it is not the
matter is being debated today, it is | 3:37:36 | 3:37:40 | |
not Brexit, it is the right
Honourable member for Islington | 3:37:40 | 3:37:43 | |
North and the comments he made a day
or two ago which threatened to in | 3:37:43 | 3:37:49 | |
the words of one commentator turn
London into a new version of John | 3:37:49 | 3:37:53 | |
Yang. That is what he said. It was
in the Evening Standard. -- | 3:37:53 | 3:37:57 | |
Pyongyang. Edited by a highly
reputable journalist. Now PWC has | 3:37:57 | 3:38:06 | |
done some analysis on the tax
contribution that the bank services | 3:38:06 | 3:38:13 | |
make. They found that £72.1 billion
in taxes were paid by the financial | 3:38:13 | 3:38:19 | |
services sector. That is around
about 9% of the UK's total tax take. | 3:38:19 | 3:38:24 | |
So it is no laughing matter when
misguided and populist politicians | 3:38:24 | 3:38:32 | |
take a cheap shot at the city to get
some headlines. If business is | 3:38:32 | 3:38:38 | |
driven away the implications for our
tax take and for employment will be | 3:38:38 | 3:38:41 | |
very severe and the people affected
will of course be children and the | 3:38:41 | 3:38:49 | |
NHS if we lose that tax revenue
being generated by the city. That is | 3:38:49 | 3:38:54 | |
why I should perhaps ask the shadow
chief secretary to gently convey to | 3:38:54 | 3:38:58 | |
his dear leader that comments such
made a day or two ago very unhelpful | 3:38:58 | 3:39:05 | |
felicity. They endanger job and
jeopardise the tax that city pays. | 3:39:05 | 3:39:12 | |
Whether it is through fiscal
measures or through words, when we | 3:39:12 | 3:39:15 | |
endanger jobs and tax revenue that
fund the NHS, that is two thirds of | 3:39:15 | 3:39:21 | |
the NHS's by that being funded by
the city -- budget. We should | 3:39:21 | 3:39:27 | |
protect that tax revenue and those
jobs. I will leave it to the two | 3:39:27 | 3:39:33 | |
gentleman to decide who intervenes.
I am more than happy to convey to my | 3:39:33 | 3:39:37 | |
honourable friend the Leader of the
Opposition his comments which I do | 3:39:37 | 3:39:43 | |
not accept. But will he also passed
on my comments to the Prime Minister | 3:39:43 | 3:39:47 | |
that she is making a mess of Brexit
that is far more dangerous to this | 3:39:47 | 3:39:51 | |
country than the comments allegedly
said by the Leader of the | 3:39:51 | 3:39:56 | |
Opposition. There is no allegation.
They were said publicly. I will of | 3:39:56 | 3:40:00 | |
course convey his comments as well.
I will do that in the spirit of | 3:40:00 | 3:40:03 | |
reciprocation. But I dispute the
comments about Brexit. We saw before | 3:40:03 | 3:40:11 | |
Christmas that we are moving onto
the next stage and I'm looking | 3:40:11 | 3:40:14 | |
forward to speeches from my Cabinet
colleagues in the days and weeks | 3:40:14 | 3:40:17 | |
which I appreciate an a different
topic to the one currently at hand. | 3:40:17 | 3:40:23 | |
Mr Speaker, for the record I must
defend the Leader of the Opposition | 3:40:23 | 3:40:26 | |
and say that the comments were that
finance must serve industry and in | 3:40:26 | 3:40:31 | |
this country we have defined ways to
increase lending to business to | 3:40:31 | 3:40:36 | |
increase more productive outcomes
for the country. All things that | 3:40:36 | 3:40:38 | |
were Revista said by the former
Chancellor of the Exchequer who now | 3:40:38 | 3:40:47 | |
works for the Evening Standard. I
thought those comments were very | 3:40:47 | 3:40:50 | |
favourable. I'm not sure I can
response to that. I think his | 3:40:50 | 3:41:00 | |
colleagues remarks went rather
further than he just suggested. | 3:41:00 | 3:41:04 | |
Perhaps it is time, Madam Deputy
Speaker, to move on to clauses | 3:41:04 | 3:41:10 | |
relating to tax avoidance and tax
evasion regularly new clause six. In | 3:41:10 | 3:41:21 | |
his remarks, the shadow chief
secretary made a series of quite | 3:41:21 | 3:41:25 | |
serious allegations about the
government's effectiveness over the | 3:41:25 | 3:41:30 | |
last seven years. In combating tax
avoidance. And tax evasion. I have | 3:41:30 | 3:41:37 | |
to say that I disagree quite
strongly with the premise of his | 3:41:37 | 3:41:41 | |
points. He suggested that the
governments, current governments, | 3:41:41 | 3:41:46 | |
had been slow to act. Or indeed had
not acted in these areas. So I would | 3:41:46 | 3:41:54 | |
gently draw his attention to the
fact that the government has taken | 3:41:54 | 3:41:57 | |
in the last seven years 75 different
measures designed to combat tax | 3:41:57 | 3:42:04 | |
evasion and tax avoidance. These
have raised cumulatively since 2010 | 3:42:04 | 3:42:08 | |
£160 billion. Any of those measures
close loopholes, glaring loopholes, | 3:42:08 | 3:42:15 | |
which had been left open by the
predecessor Labour government. Some | 3:42:15 | 3:42:22 | |
of those are mentioned. For example,
under the last Labour government it | 3:42:22 | 3:42:27 | |
was possible to have permanent
non-Dom status. This Bill will end | 3:42:27 | 3:42:32 | |
permanent non-bomb status. We had
prior to 2010 the so called Mayfair | 3:42:32 | 3:42:41 | |
tax. Where some people in the hedge
fund industry ended up playing less | 3:42:41 | 3:42:44 | |
tax than their cleaners. A 10% rate
of tax by having their capital gains | 3:42:44 | 3:42:50 | |
tax carried with them trouble --
entrepreneurial benefits. Avoiding | 3:42:50 | 3:43:00 | |
stamp duty by placing residential
property into corporate wrappers has | 3:43:00 | 3:43:05 | |
been tightened up. There is probably
more we can do but it has certainly | 3:43:05 | 3:43:09 | |
been tightened up. Moreover, we have
made sure that foreign purchases of | 3:43:09 | 3:43:16 | |
residential property do pay capital
gains tax on their disposals. That | 3:43:16 | 3:43:19 | |
will now shortly in this finance
Bill the applied to commercial | 3:43:19 | 3:43:25 | |
property as well. I have listed five
or six of those 75 measures, all of | 3:43:25 | 3:43:29 | |
which are been taken since 2010. It
is no accident. There is a causal | 3:43:29 | 3:43:35 | |
link between those actions and the
additional amount of tax being | 3:43:35 | 3:43:38 | |
collected. | 3:43:38 | 3:43:43 | |
I am sorry I was late for the
beginning of his speech and he has | 3:43:43 | 3:43:47 | |
given us a list of what the
Conservative Government did over the | 3:43:47 | 3:43:52 | |
last seven years. The previous
Conservative Government, before the | 3:43:52 | 3:43:56 | |
last Labour government, didn't do
very much about all these loopholes | 3:43:56 | 3:44:02 | |
the honourable gentleman has given
us a litany on. He's ace-king me to | 3:44:02 | 3:44:08 | |
comment on the actions of the
government over 20 years ago. I am | 3:44:08 | 3:44:12 | |
commenting on the government who has
been in office over the last eight | 3:44:12 | 3:44:15 | |
years and the record is proud and I
stand behind it. It is because of | 3:44:15 | 3:44:20 | |
these measures are tax has reduced
down to 6%, the lowest in the world. | 3:44:20 | 3:44:26 | |
Better than the tax gap under the
last Labour government. My head the | 3:44:26 | 3:44:30 | |
honourable member for Walthamstow, I
think it was her, from a sedentary | 3:44:30 | 3:44:35 | |
position draw reference to profit
shifting. Maybe it was the | 3:44:35 | 3:44:39 | |
honourable member for Ilford South.
It was that shadow chief secretary. | 3:44:39 | 3:44:45 | |
She made reference to profit
shifting. Profit shifting is a | 3:44:45 | 3:44:51 | |
serious matter and that is why I am
pleased the UK Government are at the | 3:44:51 | 3:44:56 | |
fore front of the oh ACD initiative
and I am right in saying action five | 3:44:56 | 3:45:03 | |
of that is designed to clamp down on
profit sharing. I am pleased the UK | 3:45:03 | 3:45:13 | |
Government have been taking action
in that area. I will give way. I am | 3:45:13 | 3:45:20 | |
delighted from his position of
expertise he is reminding us of the | 3:45:20 | 3:45:23 | |
great record we have of collecting
tax which pays for schools, | 3:45:23 | 3:45:28 | |
hospitals and police services up and
down the country, as well as in | 3:45:28 | 3:45:32 | |
Redditch, which I care about the
most. Does he agree we have | 3:45:32 | 3:45:36 | |
collected £12.5 billion more than if
we had left the tax gap at the same | 3:45:36 | 3:45:41 | |
state labour left us with. It is 12
point billion pounds -- £12.5 | 3:45:41 | 3:45:48 | |
billion to be spent in
constituencies. It sounds | 3:45:48 | 3:45:52 | |
theoretical, the tax gap being 6%
rather than 8% bequest to others by | 3:45:52 | 3:45:57 | |
Gordon Brown, but that 2% is
billions of pounds, which funds the | 3:45:57 | 3:46:03 | |
NHS and schools. Talking about these
avoidance measures we're not talking | 3:46:03 | 3:46:07 | |
about something which is of academic
interest, it is precisely these | 3:46:07 | 3:46:13 | |
measures which funds are public
services and that is why they are so | 3:46:13 | 3:46:16 | |
important. Turning now to the
opposition's amendments and new | 3:46:16 | 3:46:23 | |
clauses. I was once again, on
looking at the Amendment paper | 3:46:23 | 3:46:27 | |
earlier, rather surprised. The
official amendment or new Clause | 3:46:27 | 3:46:33 | |
six, tabled by the opposition calls
for a review and analysis. Analysis | 3:46:33 | 3:46:39 | |
which I'm sure is conducted already
by the Treasury and the financial | 3:46:39 | 3:46:44 | |
Secretary will point out in a few
moments, but there was an absence, a | 3:46:44 | 3:46:50 | |
silence, Tumbleweed was rolling
across the Amendment paper where I | 3:46:50 | 3:46:55 | |
would have expected to see an
abundance of ideas from the fertile | 3:46:55 | 3:46:59 | |
mind of the shadow chief secretary,
proposing ideas that we might have | 3:46:59 | 3:47:03 | |
adopted or at the very least, in his
speech, if he couldn't have done it | 3:47:03 | 3:47:11 | |
as an amendment because of some
arcane parliamentary reason, he | 3:47:11 | 3:47:14 | |
might at least, in his speech, have
proposed some ideas because I note | 3:47:14 | 3:47:23 | |
the financial Secretary to the
Treasury is an extremely attentive | 3:47:23 | 3:47:26 | |
and receptive minister. And have the
shadow chief secretary proposed some | 3:47:26 | 3:47:34 | |
constructive ideas, I am sure the
financial Secretary would have | 3:47:34 | 3:47:38 | |
listened very carefully. I am very
disappointed that after all the | 3:47:38 | 3:47:41 | |
noise and there I say, his bluster,
all the noise we heard in his | 3:47:41 | 3:47:48 | |
speech, we didn't hear any concrete
ideas. I am sure we are open to new | 3:47:48 | 3:47:54 | |
ideas, yet we didn't hear any in
what was otherwise a very amusing | 3:47:54 | 3:47:59 | |
and entertaining speech. So I am
disappointed, I have to say I am | 3:47:59 | 3:48:06 | |
disappointed. If the financial
Secretary is in the market for new | 3:48:06 | 3:48:11 | |
ideas on avoidance Kos -- because
I'm sure he is, one that was | 3:48:11 | 3:48:19 | |
discussed yesterday in the debate on
sanctions, that is making the | 3:48:19 | 3:48:23 | |
ultimate beneficial ownership of
property and land recorded in the | 3:48:23 | 3:48:27 | |
land Registry, something that was
suggested by David Cameron a couple | 3:48:27 | 3:48:33 | |
of years ago. If we did that, when
the ultimate beneficial ownership of | 3:48:33 | 3:48:39 | |
those properties change, we might
levy stamp duty on that beneficial | 3:48:39 | 3:48:47 | |
ownership as if the ownership of
that property had been transferred. | 3:48:47 | 3:48:50 | |
Because it is held in a lot of
corporate wrappers. Ownership of the | 3:48:50 | 3:48:58 | |
company is transferred and then
there is no record of that in the UK | 3:48:58 | 3:49:03 | |
and therefore no stamp duty is paid.
So there is an idea which might | 3:49:03 | 3:49:08 | |
raise some more stamp duty. I could
hardly criticise the shadow chief | 3:49:08 | 3:49:11 | |
secretary for his lack of ideas
without proposing at least one | 3:49:11 | 3:49:15 | |
myself. I hope the front bench will
give some thought to that idea in | 3:49:15 | 3:49:20 | |
due course. In concluding, let me
simply say, I am glad I said | 3:49:20 | 3:49:31 | |
something which finds favour on the
opposition bases. -- benches. The | 3:49:31 | 3:49:43 | |
action on the bank levy contemplated
in this bill is the right action, we | 3:49:43 | 3:49:48 | |
are taxing Banks more heavily and
raising more money than we have done | 3:49:48 | 3:49:52 | |
before but we must be more mindful
the risk we drive some of these | 3:49:52 | 3:49:58 | |
companies overseas at a time when
they contribute 9% of our total | 3:49:58 | 3:50:02 | |
income. I am proud this government
has delivered the lowest tax gap in | 3:50:02 | 3:50:06 | |
the world, has improved the position
by a quarter from that they | 3:50:06 | 3:50:10 | |
inherited. It pays the public
services, as my honourable friend | 3:50:10 | 3:50:14 | |
from Redditch pointed out, it is a
good record, a record I am proud of | 3:50:14 | 3:50:18 | |
and I look forward to supporting
this Bill this afternoon. I rise to | 3:50:18 | 3:50:26 | |
show my support for the amendments
tabled in the name of the opposition | 3:50:26 | 3:50:30 | |
front bench and also to formally
move amendments one, two, three and | 3:50:30 | 3:50:35 | |
four in this particular section.
These amendments all speak to a | 3:50:35 | 3:50:41 | |
long-held concern of mine. I was
into PFI before all the cool kids | 3:50:41 | 3:50:46 | |
were. Which speak to are concerned
that is not enough as politicians to | 3:50:46 | 3:50:53 | |
identify when something has gone
wrong and shrug our shoulders and | 3:50:53 | 3:50:56 | |
say, it is complicated. Because the
consequences for the communities we | 3:50:56 | 3:51:02 | |
represent and this country's public
finances are so toxic, it is vital | 3:51:02 | 3:51:07 | |
we act. George Bernard Shaw said
sometimes political necessities turn | 3:51:07 | 3:51:11 | |
out to be political mistakes. Let me
be clear, I am not seeking to blame | 3:51:11 | 3:51:17 | |
anyone. Governments of all colours
used PFI. They started in 1992 and | 3:51:17 | 3:51:22 | |
they have gone on to the present
day. But the last Labour government | 3:51:22 | 3:51:27 | |
used PFI to fund things. It wasn't
an ideological decision, it was | 3:51:27 | 3:51:31 | |
about keeping borrowing off the
books. But we know how costly these | 3:51:31 | 3:51:36 | |
decisions have been for this
country. We know now that every | 3:51:36 | 3:51:41 | |
single school and hospital and
street lighting and motorway that | 3:51:41 | 3:51:45 | |
might have been built that was
needed, but the consequences of | 3:51:45 | 3:51:48 | |
these costs mean we may not be able
to build these things in the future. | 3:51:48 | 3:51:52 | |
What I am here today to do is to
propose a way we can act now, as our | 3:51:52 | 3:51:58 | |
parliament, to get money back for
public services. Could be one of us | 3:51:58 | 3:52:02 | |
will have one of these projects in
our constituencies. We can talk | 3:52:02 | 3:52:07 | |
about the numbers involved, £60
billion worth of Capitol Building on | 3:52:07 | 3:52:10 | |
which we will pay back £200 billion.
Truly, these are the legal loan | 3:52:10 | 3:52:16 | |
sharks of the public sector.
Charging an excessive rate of | 3:52:16 | 3:52:21 | |
interest, in comparison to public
sector borrowing for building and | 3:52:21 | 3:52:24 | |
running services for us. Members
opposite might say, the cost you're | 3:52:24 | 3:52:29 | |
talking about includes services, so
it is worth breaking down those | 3:52:29 | 3:52:33 | |
charges. Last year, this country
paid out £10 billion in PFI | 3:52:33 | 3:52:40 | |
repayments. Over half of that was
for interest and charges. So the | 3:52:40 | 3:52:43 | |
money we are paying out for PFI is
not paying for those schools and | 3:52:43 | 3:52:47 | |
hospitals to be run. It is paying
the profits for the companies we | 3:52:47 | 3:52:51 | |
borrowed from to be able to build in
the first place. The National Audit | 3:52:51 | 3:52:57 | |
Office has done absolutely sterling
work uncovering just how bad value | 3:52:57 | 3:53:01 | |
for money calculation it was to go
with PFI. On average, these projects | 3:53:01 | 3:53:06 | |
are up to 4% more expensive than
government borrowing at the time and | 3:53:06 | 3:53:10 | |
now in total, with fees included,
they are more expensive. We know | 3:53:10 | 3:53:21 | |
that interest matters because we
know the costs aren't about the | 3:53:21 | 3:53:28 | |
management of the project, they are
about the profits being made. Every | 3:53:28 | 3:53:32 | |
MP who is being lobbied about their
schools and hospitals, needs to | 3:53:32 | 3:53:37 | |
recognise that 20% of the extra
money the government says it is | 3:53:37 | 3:53:41 | |
giving to schools and hospitals will
not touch the sides of the emergency | 3:53:41 | 3:53:45 | |
wards. It will not go into the
budgets of teachers to pay for the | 3:53:45 | 3:53:48 | |
books and the classes are
schoolchildren need. It will go out | 3:53:48 | 3:53:54 | |
of the public sector into pure
profit for these companies. The | 3:53:54 | 3:53:57 | |
Centre for health and the public
interest has gone through the | 3:53:57 | 3:54:01 | |
accounts of these companies, just a
few hundred that do the schools and | 3:54:01 | 3:54:05 | |
hospitals, to identify just how much
money. £1 billion in form of pre-tax | 3:54:05 | 3:54:10 | |
profit from the NHS deals alone. 125
of the 700 PFI projects. We know the | 3:54:10 | 3:54:19 | |
company that holds the contract for
University College London, has made | 3:54:19 | 3:54:24 | |
£190 million alone in the past
decade, out of the £725 million the | 3:54:24 | 3:54:31 | |
NHS has paid it. In short, it has
made enough in profits to build and | 3:54:31 | 3:54:35 | |
run an entire hospital. We need to
talk about the human cost. I became | 3:54:35 | 3:54:42 | |
interested in PFI when I could see
the damage it was doing to my local | 3:54:42 | 3:54:47 | |
hospital, Whipps Cross in
Walthamstow. And to Frederick Brehme | 3:54:47 | 3:54:52 | |
School in Walthamstow where the
headteacher is now desperately | 3:54:52 | 3:54:54 | |
struggling to balance her budget in
the face of cuts from this | 3:54:54 | 3:54:57 | |
government to the school's budget.
But the one repayment she cannot cut | 3:54:57 | 3:55:02 | |
is the PFI repayments. But the
biggest PFI in our NHS, £1 billion | 3:55:02 | 3:55:11 | |
capital build, £7 billion repaid is
paying £150 million a year of which | 3:55:11 | 3:55:16 | |
£74 million is interest alone. No
wonder the hospital is in such | 3:55:16 | 3:55:21 | |
persistent financial difficulties. I
will give way. She is making a | 3:55:21 | 3:55:29 | |
powerful case, Whipps Cross Hospital
also serves my constituents, but to | 3:55:29 | 3:55:32 | |
the east you have Queens hospital in
Romford. The PFI are such that they | 3:55:32 | 3:55:39 | |
are creating enormous financial
pressures on the barking, Heybridge | 3:55:39 | 3:55:44 | |
and Redbridge NHS trusts. The she
agreed this underpins the urgency of | 3:55:44 | 3:55:48 | |
this issue, looking out what really
has happened and clawing back some | 3:55:48 | 3:55:52 | |
of the excessive greed to better
fund our public services? My | 3:55:52 | 3:55:57 | |
next-door neighbour MP pre-empts the
argument I am. These amendments | 3:55:57 | 3:56:01 | |
speak to the 700 existing contracts.
I believe and I'm pleased the | 3:56:01 | 3:56:08 | |
support from the front bench, the
damage these contracts are doing | 3:56:08 | 3:56:12 | |
now, every day, in those schools
where headteachers are having to | 3:56:12 | 3:56:16 | |
consider sacking people, but cannot
cut the repayments and where these | 3:56:16 | 3:56:20 | |
hospitals are cancelling operations
but cannot reduce the repayments to | 3:56:20 | 3:56:23 | |
their lenders, we must do something
urgently. And we can do something. | 3:56:23 | 3:56:28 | |
The sixth form College in Haywards
Heath where there is no sixth form, | 3:56:28 | 3:56:33 | |
because nobody will take on the PFI
debt of that school. | 3:56:33 | 3:56:38 | |
Northamptonshire Council, we keep
talking about it. It is selling its | 3:56:38 | 3:56:41 | |
own buildings because it is going
bankrupt, but it will owe £240 | 3:56:41 | 3:56:47 | |
million to PFI deals, just five PFI
deals in the next two to five years | 3:56:47 | 3:56:54 | |
in which £77 million is interest
payment. Siri Council, also in | 3:56:54 | 3:56:59 | |
financial difficulties. Again, £386
million PFI commitments, it will not | 3:56:59 | 3:57:05 | |
be able to reduce, of which 51
million is interest alone. | 3:57:05 | 3:57:13 | |
We now know from Carillion that the
idea of working with the private | 3:57:13 | 3:57:19 | |
sector would somehow transfer the
risk of these construction and | 3:57:19 | 3:57:22 | |
management projects to the private
sector has been thoroughly debunked. | 3:57:22 | 3:57:27 | |
Because it is very, very simple. We
do not let schools and hospitals go | 3:57:27 | 3:57:33 | |
bust because we know that means that
kids don't get taught and patients | 3:57:33 | 3:57:37 | |
don't get treated. So why have we
got into deals and why do we | 3:57:37 | 3:57:42 | |
continue to get into deals that
presume that somehow we can get out | 3:57:42 | 3:57:45 | |
of them if contractors don't deliver
is a mystery to me. Certainly it is | 3:57:45 | 3:57:50 | |
a debate for another time in this
place about what is a better way to | 3:57:50 | 3:57:55 | |
borrow from, when there is so little
competition for our business. I | 3:57:55 | 3:57:59 | |
believe that is where the answer
lies. When we look at this industry | 3:57:59 | 3:58:03 | |
and we looked at was new clauses
one, two, three and four, new | 3:58:03 | 3:58:08 | |
amendments come we're not talking
about an industry of hundreds of | 3:58:08 | 3:58:13 | |
companies, that work by the Centre
for health and public interest also | 3:58:13 | 3:58:17 | |
found that 92% of all the PFI deals
within the NHS were owned or appear | 3:58:17 | 3:58:23 | |
to have equity from just eight
companies. These are a small number | 3:58:23 | 3:58:28 | |
of companies who have captured a
market and are therefore setting a | 3:58:28 | 3:58:32 | |
price and we and the public sector
is paying the consequences. I look | 3:58:32 | 3:58:37 | |
to one of those that owns my local
hospital, which is cross, it has | 3:58:37 | 3:58:44 | |
just 25 members of staff. It is not
just day-to-day doing the blood | 3:58:44 | 3:58:53 | |
tests. It stands to make £18 billion
from PFI deals. It has is property | 3:58:53 | 3:59:00 | |
based over in Guernsey. Those eight
companies, Barclays, into serve, etc | 3:59:00 | 3:59:10 | |
are making millions of pounds in
profit as we are watching our | 3:59:10 | 3:59:15 | |
councils go bust, our schools get
closed down and our hospitals | 3:59:15 | 3:59:18 | |
struggling. And, yes, it has got
harder to this government because | 3:59:18 | 3:59:24 | |
the cuts they have made but under
any government, asking our public | 3:59:24 | 3:59:28 | |
services to pay back at these
excessive rates of interest would be | 3:59:28 | 3:59:32 | |
untenable. So let's look at what we
could actually do and where these | 3:59:32 | 3:59:36 | |
amendments have come from. I hear
and I understand the calls from | 3:59:36 | 3:59:40 | |
people to get rid of these contracts
out right and say we're not going to | 3:59:40 | 3:59:44 | |
pay but we know that these contracts
are just as expensive to counsel as | 3:59:44 | 3:59:49 | |
they are to carry on. -- cancel.
They have been costed specifically | 3:59:49 | 3:59:58 | |
to make sure interests are
protected. It is not just about | 3:59:58 | 4:00:04 | |
repayment charges and covering those
costs, we would have two cover the | 4:00:04 | 4:00:07 | |
interest rate swaps which were built
into these contracts to make sure | 4:00:07 | 4:00:12 | |
they were always profitable. It
would cost 220 billion to tell these | 4:00:12 | 4:00:17 | |
contracts. And indeed, the judgment
from the Council of Europe in the | 4:00:17 | 4:00:22 | |
1980s clarifies explicitly the law
around nationalisation and the | 4:00:22 | 4:00:27 | |
compensation that would be required
to be paid to companies were we to | 4:00:27 | 4:00:32 | |
cancel these contracts. But let me
tell MPs on this, contracts and laws | 4:00:32 | 4:00:36 | |
might speak on the side of this of
what is known to the public sector, | 4:00:36 | 4:00:42 | |
but tax law isn't. And yes, I have
been through the hundreds of pages | 4:00:42 | 4:00:46 | |
of the contracts, I have seen those
clauses but I've also been through | 4:00:46 | 4:00:50 | |
the clauses that clarify that tax
rates can change. The government | 4:00:50 | 4:00:54 | |
agrees because when I asked them,
they seem to think that the benefits | 4:00:54 | 4:00:58 | |
they had got from changes in the tax
regime are to the victors the | 4:00:58 | 4:01:02 | |
spoils. That is why I have disabled
these amendments because I believe | 4:01:02 | 4:01:06 | |
that Parliament and MPs struggling
in their constituency with these | 4:01:06 | 4:01:10 | |
loans would take a very different
view. Corporation tax matters | 4:01:10 | 4:01:16 | |
because when the value for money
assessment was done in using PFI, | 4:01:16 | 4:01:19 | |
there was a explicit calculation and
how much tax these companies would | 4:01:19 | 4:01:25 | |
pay. Most of the 700 existing deals
were signed at rates of 13% or more. | 4:01:25 | 4:01:31 | |
I'm sure the member for Croydon and
his advocacy of cutting corporation | 4:01:31 | 4:01:36 | |
tax would not agree that when these
companies are now facing rates of | 4:01:36 | 4:01:40 | |
17% and his local schools and
hospitals, and I know that many | 4:01:40 | 4:01:44 | |
hospitals are affected by PFI in
south London, are not getting the | 4:01:44 | 4:01:49 | |
investment they definitely need to
keep going. This is an amount of | 4:01:49 | 4:01:54 | |
money they agree to pay at the point
at which contracts were signed. We | 4:01:54 | 4:01:57 | |
have been through the accounts. The
number which the Centre for health | 4:01:57 | 4:02:01 | |
and public interest can give our
small C Conservative because we | 4:02:01 | 4:02:07 | |
cannot be clear. But already these
companies have had a windfall of | 4:02:07 | 4:02:14 | |
£190 million in the NHS alone
through reductions in corporation | 4:02:14 | 4:02:18 | |
tax. In our school system it would
be a £60 million windfall by 2020. | 4:02:18 | 4:02:26 | |
Now, that money is money we expected
for our public services. We also did | 4:02:26 | 4:02:31 | |
not expect to pay excessive rates of
interest and yet the evidence is | 4:02:31 | 4:02:35 | |
there. So the question for all of us
is what can we do to act. Amendments | 4:02:35 | 4:02:39 | |
one, two, three and four speak to
what we can do now. This year, | 4:02:39 | 4:02:46 | |
within months, is to send a very
clear message to the PFI companies | 4:02:46 | 4:02:50 | |
that time is up. We're not going to
accept these kinds of contract any | 4:02:50 | 4:02:55 | |
more and the damage that they are
doing to our local public services. | 4:02:55 | 4:02:59 | |
If they will not, the small group of
them, come forward with a proposal | 4:02:59 | 4:03:03 | |
to reduce these repayments, I would
gently urge the Minister, I know his | 4:03:03 | 4:03:08 | |
department has been resistance to
some of my questions about how often | 4:03:08 | 4:03:11 | |
he has met with these companies, but
I hope he could agree that he did | 4:03:11 | 4:03:16 | |
get these eight companies around the
table, looking at their portfolios | 4:03:16 | 4:03:19 | |
of loans and reducing the cost, then
we could generate some real savings. | 4:03:19 | 4:03:30 | |
Asking individual hospitals and
schools to renegotiate against their | 4:03:30 | 4:03:32 | |
expensive lawyers will save very
little. But if the government took | 4:03:32 | 4:03:34 | |
the lead on this and negotiated with
these eight companies, we could get | 4:03:34 | 4:03:40 | |
money back now. If we cannot get
them to negotiate, if they continue | 4:03:40 | 4:03:44 | |
to be stubborn and resist any change
in these contracts, then yes, let us | 4:03:44 | 4:03:49 | |
use a windfall tax to make sure we
get cashback for our public | 4:03:49 | 4:03:53 | |
services. Amendment one is a review.
I have the member for Croydon will | 4:03:53 | 4:03:58 | |
enjoy much as I do reading the
resolutions for these. But it simply | 4:03:58 | 4:04:06 | |
asks for a review of how much it
would raise were we to apply the | 4:04:06 | 4:04:11 | |
bank levy to these financing
companies. If that does not attempt | 4:04:11 | 4:04:15 | |
him, then I tempt him to Amendment
three which is more explicitly about | 4:04:15 | 4:04:18 | |
calculating windfall tax on these
companies. It seeks to work out just | 4:04:18 | 4:04:23 | |
how much extra they have made from
the original deals and thence to | 4:04:23 | 4:04:27 | |
claw it back by adjusting their tax
allowances accordingly. At this | 4:04:27 | 4:04:32 | |
point all we want to do is clarify
how much it would raise to give the | 4:04:32 | 4:04:36 | |
government is the negotiating tactic
they need to get these companies to | 4:04:36 | 4:04:39 | |
do what is right, to get round a
table, just as we would when people | 4:04:39 | 4:04:44 | |
come to us in our constituencies and
they have got themselves into debt, | 4:04:44 | 4:04:47 | |
we would look to consolidate their
loans. This amendment is about | 4:04:47 | 4:04:52 | |
sending a clear message to this
industry that Parliament will act, | 4:04:52 | 4:04:56 | |
we will not go another year of
listening to those headteachers and | 4:04:56 | 4:05:01 | |
hospital managers telling us they
cannot cope with these loans, that | 4:05:01 | 4:05:04 | |
we will do something about it. The
government will claim that they are | 4:05:04 | 4:05:09 | |
entitled to this bonus because they
will took on the risk of the | 4:05:09 | 4:05:11 | |
buildings but it is clearly an
unexpected bonus and it is clearly | 4:05:11 | 4:05:17 | |
an opportunity to make progress. I
simply say to the Minister if he | 4:05:17 | 4:05:23 | |
will not accept these amendments and
commits to negotiating with these | 4:05:23 | 4:05:26 | |
companies today to get the urgently
needed money back for hospitals and | 4:05:26 | 4:05:32 | |
schools all around the country which
are going bust, he has to explain | 4:05:32 | 4:05:36 | |
just how he is going to get us a
better deal on these existing | 4:05:36 | 4:05:40 | |
contracts, because I will put him on
record. It's maybe that we cannot | 4:05:40 | 4:05:45 | |
tell these contracts but certainly,
as you have seen today, a Labour | 4:05:45 | 4:05:49 | |
government would get those companies
round the table. We would make sure | 4:05:49 | 4:05:52 | |
they pay their dues those excessive
profits abroad back in. So we did | 4:05:52 | 4:05:58 | |
not see teachers in our
constituencies to have to fund | 4:05:58 | 4:06:01 | |
raised to pay for books and pencils
for art students was these companies | 4:06:01 | 4:06:10 | |
making millions or billions of
pounds at our expense. Sometimes | 4:06:10 | 4:06:14 | |
necessity becomes a political
mistake but the necessity here is to | 4:06:14 | 4:06:19 | |
axe and I urge the Minister to
listen. I'm going to keep my | 4:06:19 | 4:06:26 | |
comments focused on the bank levy,
PFI and tax evasion. I believe that | 4:06:26 | 4:06:33 | |
results speak for greater than
rhetoric. The banking sector paid | 4:06:33 | 4:06:39 | |
billions of pounds in the 2016-2017
year. I also understand that the | 4:06:39 | 4:06:52 | |
proposals at the moment suggest that
they will raise an additional 1.8 | 4:06:52 | 4:06:57 | |
billion of pounds for the Exchequer.
I have a lot of sympathy for the | 4:06:57 | 4:07:05 | |
honourable member for Walthamstow
and her comments, however, I do | 4:07:05 | 4:07:08 | |
think that one size fits all is not
appropriate. I have experience with | 4:07:08 | 4:07:12 | |
PFI. In 2012 I launched a campaign.
The last Labor Secretary signed a | 4:07:12 | 4:07:20 | |
deal for the surgery centre in
Stevenage to be operated by | 4:07:20 | 4:07:24 | |
brilliant. As a results, eight and
found half -- 8500 deals were lost. | 4:07:24 | 4:07:34 | |
As a result, I ran a very long and
hard campaign and I persuaded the | 4:07:34 | 4:07:41 | |
Health Secretary in 2013 to
nationalise that facility and return | 4:07:41 | 4:07:44 | |
it to my local hospital trust. So a
piece of the NHS was privatised by | 4:07:44 | 4:07:52 | |
the last Labour Health Secretary. If
there is a specific issue you are | 4:07:52 | 4:07:57 | |
able as the local member to go in
there and make a change. I took | 4:07:57 | 4:08:03 | |
currently on in 2012 and I want. As
a result we launched a campaign to | 4:08:03 | 4:08:07 | |
stop a blacklisting and then we won
again on stopping blacklisting | 4:08:07 | 4:08:12 | |
amongst construction workers. So it
is very important that individual | 4:08:12 | 4:08:16 | |
members of Parliament identify
problems with PFI in their areas and | 4:08:16 | 4:08:18 | |
then we can work and tackle on them
as individuals. In terms of tax | 4:08:18 | 4:08:24 | |
evasion, I think it is very
important that people look at what | 4:08:24 | 4:08:29 | |
they can do as individuals. Again,
back in 2012, I launched a campaign | 4:08:29 | 4:08:37 | |
before it was fashionable for tax
transparency to be launched. I wrote | 4:08:37 | 4:08:43 | |
to all FTSE 100 executives in
association with Christian Aid | 4:08:43 | 4:08:48 | |
asking them if they would help
developing countries around the | 4:08:48 | 4:08:51 | |
world with tax transparency. It is
almost a race to the bottom in some | 4:08:51 | 4:08:56 | |
areas with what each country will
offer the these large national is to | 4:08:56 | 4:09:03 | |
move around. It was all before tax
evasion was far more fashionable. As | 4:09:03 | 4:09:15 | |
a result, the government got
involved and I'm very pleased to see | 4:09:15 | 4:09:17 | |
that since 2000 and additional
billions of pounds has been raised. | 4:09:17 | 4:09:25 | |
For me that there's an additional
hundred £60 billion that has been | 4:09:25 | 4:09:29 | |
invested in local National Health
Service. It has been paid for by the | 4:09:29 | 4:09:36 | |
government and not by outside
organisations or PFI. It is money | 4:09:36 | 4:09:39 | |
that is being invested in children's
futures in my constituency. I do | 4:09:39 | 4:09:45 | |
think that individual members of
Parliament and a great opportunity | 4:09:45 | 4:09:47 | |
to go out there may change in their
areas if there specific issues they | 4:09:47 | 4:09:53 | |
can tackle and it is possible to win
on those issues. I was a as | 4:09:53 | 4:10:07 | |
surprised as you were at the brevity
of that speech. I was willing the | 4:10:07 | 4:10:11 | |
member of Croydon South to keep
going for an extra 30 seconds to hit | 4:10:11 | 4:10:16 | |
the 30 minute mark because he was so
close but not quite there. I want to | 4:10:16 | 4:10:20 | |
talk specifically on the issues of
the various topics that we were | 4:10:20 | 4:10:24 | |
discussing around the bank levy, tax
avoidance and briefly on PFI. Just | 4:10:24 | 4:10:30 | |
say that we will be supporting the
amendments put forward by the | 4:10:30 | 4:10:34 | |
honourable for Walthamstow. I will
not expand on that because I think | 4:10:34 | 4:10:39 | |
she has covered the issue fairly
broadly. On the bank levy, it was in | 4:10:39 | 4:10:45 | |
the 2017 manifesto that we do not
support the reductions there have | 4:10:45 | 4:10:49 | |
been to the bank levy and we support
the reversal of those reductions. | 4:10:49 | 4:10:53 | |
What is being put forward by the
Labour Party in relation to this is | 4:10:53 | 4:10:56 | |
a very good way to tackle this
given, as has been said in some of | 4:10:56 | 4:11:01 | |
the exchanges across the House, it
was not an amendment of a | 4:11:01 | 4:11:04 | |
resolution, and not an ability for
us to remove some of the more it | 4:11:04 | 4:11:10 | |
interesting and exciting things we
would have liked to do. I hope the | 4:11:10 | 4:11:13 | |
next time there is a finance Bill
the government does choose to do | 4:11:13 | 4:11:16 | |
that and I hope that if we end up
with a Labour Party they will make | 4:11:16 | 4:11:21 | |
that change and ensure that it comes
through without any budgets process | 4:11:21 | 4:11:28 | |
of finance Bill that we have because
that is the only way we can have | 4:11:28 | 4:11:31 | |
that reasonable level of discussion
around this. Moving on specifically | 4:11:31 | 4:11:36 | |
to the bank levy, as I said, we
oppose the reductions there have | 4:11:36 | 4:11:40 | |
been. The new clause three that has
been put forward in relation to this | 4:11:40 | 4:11:45 | |
I think tackles this in the most
sensible way that we can as the | 4:11:45 | 4:11:48 | |
opposition in this debate,
constrained as we are. It is about | 4:11:48 | 4:11:53 | |
looking at the effectiveness of the
bank levy and looking at how much | 4:11:53 | 4:11:56 | |
money does in fact take in and
whether or not there will be other | 4:11:56 | 4:12:01 | |
opportunities to do different things
that would involve more money being | 4:12:01 | 4:12:04 | |
taken into the Chaudhary. I think we
are in a strange position. It was | 4:12:04 | 4:12:08 | |
funny to hear people talking about
the city. When I speak to people in | 4:12:08 | 4:12:13 | |
the city it seems like my views as a
fairly left-wing person in the SNP | 4:12:13 | 4:12:17 | |
seem to have accorded pretty closely
with some of the city views right | 4:12:17 | 4:12:23 | |
now, whereas most of them are upset
about the set. Actually I have more | 4:12:23 | 4:12:28 | |
in common with them than I feel I
have ever had before where is the | 4:12:28 | 4:12:32 | |
Conservatives have less in common is
an with them because they are very | 4:12:32 | 4:12:38 | |
upset about the issues that will be
thrown up because of Brexit. So we | 4:12:38 | 4:12:42 | |
are in a very strange situation
right now where this is the case. | 4:12:42 | 4:12:50 | |
I will not stop mentioning, trying
to follow on from the work of Roger | 4:12:50 | 4:12:55 | |
Mullen, it was welcome the
government did create a review | 4:12:55 | 4:13:00 | |
around SLP, but we are to see actual
solid action coming out of that and | 4:13:00 | 4:13:06 | |
it would be nice to know when we'll
see the SLP stamp down on and get a | 4:13:06 | 4:13:11 | |
situation where it will be no longer
in existence and we have a system | 4:13:11 | 4:13:16 | |
where people can not abuse the
Scottish Limited partnerships. It'll | 4:13:16 | 4:13:20 | |
be interesting to see that coming
forward in relation to tax avoidance | 4:13:20 | 4:13:24 | |
and evasion. For more creative
solutions to this, the SNP have | 4:13:24 | 4:13:29 | |
called for rules are ranked this to
be devolved to Scotland. We think it | 4:13:29 | 4:13:35 | |
would be done better, as we think we
would do everything better. But | 4:13:35 | 4:13:40 | |
around this matter, we feel, the
government has been recognised in | 4:13:40 | 4:13:44 | |
the action it has taken, we feel
would be in a better position to | 4:13:44 | 4:13:59 | |
tackle tax avoidance and evasion.
The member for Croydon South talked | 4:13:59 | 4:14:03 | |
about fairness and how the situation
is perhaps more further than it has | 4:14:03 | 4:14:09 | |
been in relation to the tax gap. But
the point we are making and will | 4:14:09 | 4:14:14 | |
continue to make, the system isn't
fair. If we have any tax, where a | 4:14:14 | 4:14:21 | |
situation, for example, we don't
have enough customs officers to make | 4:14:21 | 4:14:25 | |
all the checks we need to make, we
have a situation where people can | 4:14:25 | 4:14:29 | |
avoid tax because there aren't
enough customs officers to check. | 4:14:29 | 4:14:36 | |
Any situation where there is any
tax, no matter how that compares to | 4:14:36 | 4:14:42 | |
other countries, is a problem for
us. On the issue of comparison to | 4:14:42 | 4:14:47 | |
other countries, there was a report
in 2014 which showed smaller | 4:14:47 | 4:14:54 | |
countries had a smaller tax because
they are better able to crack down | 4:14:54 | 4:14:59 | |
on tax avoidance, because they can
have a situation where they can | 4:14:59 | 4:15:03 | |
better police things coming in and
out, where they can ensure tax | 4:15:03 | 4:15:08 | |
avoidance and evasion doesn't
happen. Just another point in the | 4:15:08 | 4:15:13 | |
case for Scottish independence.
Around these things, the new clause | 4:15:13 | 4:15:17 | |
three if the Labour Party decided to
move that, we would support them in | 4:15:17 | 4:15:20 | |
that basis. I am not going to take a
long time to speak about this, my | 4:15:20 | 4:15:26 | |
point have been made in previous
part of this debate, but we support | 4:15:26 | 4:15:30 | |
making more changes to this to crack
down on tax avoidance, tax evasion | 4:15:30 | 4:15:36 | |
and undo the reduction to the bank
levy. It is a real pleasure to | 4:15:36 | 4:15:45 | |
follow the CLARE BALDING: From
Aberdeen North and other | 4:15:45 | 4:15:48 | |
contributions that have been made.
-- laid I want to bust the myth that | 4:15:48 | 4:15:57 | |
we and the side of the House, some
kind of friends of the forest bank | 4:15:57 | 4:16:02 | |
and bad people trying to swindle
money out of the honest taxpayer. | 4:16:02 | 4:16:07 | |
Nothing could be further from the
truth. We on this side want to see a | 4:16:07 | 4:16:12 | |
healthy, financial system
underpinned by banks and banks | 4:16:12 | 4:16:21 | |
contributing fairly as they have
done under this government. We must | 4:16:21 | 4:16:25 | |
look at the facts on the record
which speak for themselves in this | 4:16:25 | 4:16:30 | |
case, as my honourable friend from
Croydon has so eloquently listed. I | 4:16:30 | 4:16:35 | |
think the fact we have set out a
plan to raise an additional £9 | 4:16:35 | 4:16:41 | |
billion by 2022, which will be a
significant contribution to the | 4:16:41 | 4:16:45 | |
Exchequer, which is going to help
fund the public services that people | 4:16:45 | 4:16:49 | |
rely on. The banks are making money
out of businesses in this country. | 4:16:49 | 4:16:54 | |
They need to make a return, they
need to contribute fairly and the | 4:16:54 | 4:16:59 | |
measures in this bill are measures
that will ensure this happens. I | 4:16:59 | 4:17:03 | |
really think that when Labour start
to attack us and our policies, they | 4:17:03 | 4:17:10 | |
need to look at themselves in the
mirror. They need to look at the | 4:17:10 | 4:17:14 | |
number of times they voted against
introducing corporation tax and bank | 4:17:14 | 4:17:18 | |
levy measures which have raised
money from the banks, as we have | 4:17:18 | 4:17:23 | |
seen. They were the party that
allowed the Mayfair loophole to | 4:17:23 | 4:17:28 | |
develop with hedge fund managers
getting away without paying any tax, | 4:17:28 | 4:17:32 | |
where their cleaners were paying
tax. And, can I remind the House, it | 4:17:32 | 4:17:38 | |
was this Chancellor in this budget
that put the tax on private jets. | 4:17:38 | 4:17:44 | |
Can there be anything else that
indicates more strongly that we are | 4:17:44 | 4:17:48 | |
about fairness and taxing the
proceeds of profit in the right way | 4:17:48 | 4:17:51 | |
to fund our public services. When
the honourable member talks about | 4:17:51 | 4:18:00 | |
banks are making a fair
contribution, I disagree with that | 4:18:00 | 4:18:06 | |
agenda. The banks are making a fair
contribution. Look, I don't mind | 4:18:06 | 4:18:13 | |
making statements and I am wrong
when people make mistakes and people | 4:18:13 | 4:18:17 | |
bring that to my attention. I did
say they were not making a fair | 4:18:17 | 4:18:23 | |
contribution, we were talking about
the context of the government's own | 4:18:23 | 4:18:27 | |
definition of what they should be
doing. Have a look at the work, have | 4:18:27 | 4:18:31 | |
a look at the book and do your
research and then make an | 4:18:31 | 4:18:34 | |
accusation. I thank the honourable
member for his intervention, I am | 4:18:34 | 4:18:39 | |
not making an accusation and my
apologies that I misrepresented him. | 4:18:39 | 4:18:44 | |
I want to make the point I think
banks to make a fair contribution | 4:18:44 | 4:18:49 | |
and the measures in this bill will
enable them to do so. The £160 | 4:18:49 | 4:18:55 | |
billion raised by the Exchequer for
the measures we have brought in | 4:18:55 | 4:18:58 | |
since we have been in government.
She is making an important point | 4:18:58 | 4:19:04 | |
that on the side of the House we
don't just obsess about the rate and | 4:19:04 | 4:19:08 | |
punitive rate for party political
purposes. The point is to grow the | 4:19:08 | 4:19:15 | |
economy, maximise the tax take and
the money and per click services. My | 4:19:15 | 4:19:26 | |
honourable friend is right. It is a
fact that when you lower the tax | 4:19:26 | 4:19:32 | |
rate, you do increase the tax taken
that as a fact we are seeing time | 4:19:32 | 4:19:36 | |
and time again which has benefited
our economy. I cannot take any more | 4:19:36 | 4:19:41 | |
interventions. I am moving towards
my conclusion. I would like the | 4:19:41 | 4:19:46 | |
Minister to touch on his winding up
in some of the issues around crypto | 4:19:46 | 4:19:51 | |
currencies and Bitcoin, which are
important and not covered by | 4:19:51 | 4:19:54 | |
regulation at the moment. I think
all of us would like to be assured | 4:19:54 | 4:20:00 | |
the Treasury is making sure that we
do not allow loopholes to develop | 4:20:00 | 4:20:05 | |
web possibly we could see tax
evasion and tax avoidance in that | 4:20:05 | 4:20:09 | |
area. There are some alarming
reports at the moment for people | 4:20:09 | 4:20:14 | |
being arrested for money laundering,
billions of pounds to this method. I | 4:20:14 | 4:20:20 | |
believe it is an area that isn't
regulated at all. I wish to make one | 4:20:20 | 4:20:24 | |
comment about the Honourable lady
from Walthamstow. She is very well | 4:20:24 | 4:20:31 | |
informed and I recognise the hard
work she has done. I do share a | 4:20:31 | 4:20:34 | |
number of the concerns about PFI, my
constituency in Worcester, the | 4:20:34 | 4:20:42 | |
hospital serves people from reddish
and is in special measures on does | 4:20:42 | 4:20:46 | |
have a financial issue. We are
worried about that in reddish and I | 4:20:46 | 4:20:50 | |
would like to hear the Minister
reassure my constituents that, I | 4:20:50 | 4:20:55 | |
don't think the amendment is the
right way of doing it, but I would | 4:20:55 | 4:20:59 | |
like to see the action he will take
to reassure my constituents in | 4:20:59 | 4:21:02 | |
reddish judge that they are not
reaping profits that they shouldn't | 4:21:02 | 4:21:07 | |
be getting. I would like to ask the
honourable lady from Walthamstow to | 4:21:07 | 4:21:12 | |
clarify, is it the position of the
Labour front bench now that they are | 4:21:12 | 4:21:16 | |
not going to take all the PFI
contracts back into public | 4:21:16 | 4:21:20 | |
ownership? She mentioned £220
billion that it would cost to take | 4:21:20 | 4:21:26 | |
them back into, and I think that is
the official position of the Labour | 4:21:26 | 4:21:29 | |
Party. It is confusing to think what
the Labour Party is proposing, I | 4:21:29 | 4:21:37 | |
don't think we really know what the
position is on that. So clarity | 4:21:37 | 4:21:40 | |
would be welcomed. I come to my
final point and we have heard Brexit | 4:21:40 | 4:21:48 | |
mentioned earlier. We have heard
remarks about exit and the Labour | 4:21:48 | 4:21:52 | |
Party's position and claims that
somehow Brexit is damaging our | 4:21:52 | 4:21:55 | |
economy. The honourable gentleman
did mention Brexit from accidentally | 4:21:55 | 4:22:03 | |
position. What people fear more than
Brexit is a Labour government that | 4:22:03 | 4:22:12 | |
would damage the economy, damage
jobs and business investment. That | 4:22:12 | 4:22:16 | |
is what businesses are worried
about. To conclude, I will give way. | 4:22:16 | 4:22:22 | |
I simply wish to say there must be
an objective assessment given the | 4:22:22 | 4:22:26 | |
strength of the economic risk the
place to Brexit. Brexit in terms of | 4:22:26 | 4:22:32 | |
financial services could take it
away, could make it a situation | 4:22:32 | 4:22:35 | |
where there is not the legal right
to do the kind of business which | 4:22:35 | 4:22:38 | |
currently take place within the
United Kingdom. To compare that with | 4:22:38 | 4:22:43 | |
differences of opinion over
political policies, there is no | 4:22:43 | 4:22:46 | |
comparison. In this government must
take the economic risks of Brexit | 4:22:46 | 4:22:51 | |
seriously. I thank the honourable
gentleman and I can see Madam Deputy | 4:22:51 | 4:22:56 | |
Speaker being crossed that we have
moved off the point. So I do not | 4:22:56 | 4:23:00 | |
support this amendment because what
I believe the government has put | 4:23:00 | 4:23:04 | |
forward is already tackling the
issues of tax avoidance and evasion | 4:23:04 | 4:23:07 | |
and those are the things that will
ultimately benefit our economy and | 4:23:07 | 4:23:10 | |
constituents. It is an honour to
follow my honourable friend from | 4:23:10 | 4:23:18 | |
Redditch and I would like to speak
specifically in support of | 4:23:18 | 4:23:22 | |
amendments one, two, three and four.
The PFI system was demonstrated by | 4:23:22 | 4:23:30 | |
my honourable friend from
Walthamstow, not working. And we | 4:23:30 | 4:23:33 | |
need to change it. It is not right
half of the costs for PFI schemes | 4:23:33 | 4:23:42 | |
are interest payments. Local
services are under desperate | 4:23:42 | 4:23:44 | |
pressure at the moment. In April 20
16, 17 schools across Edinburgh were | 4:23:44 | 4:23:50 | |
closed due to fears the buildings
were on structurally unsafe. It | 4:23:50 | 4:23:55 | |
included three primary schools in
Edinburgh West. All 17 schools | 4:23:55 | 4:23:59 | |
affected were constricted under PPP
and PFI initiatives. In Edinburgh | 4:23:59 | 4:24:05 | |
West, one primary school -- three
primary schools all close. Parents | 4:24:05 | 4:24:12 | |
were left worried and frustrated. It
is clear to me, I have heard today | 4:24:12 | 4:24:17 | |
and what I have witnessed my self,
this payday loan approach to | 4:24:17 | 4:24:26 | |
building is costing us dearly.
Councils in Scotland on across the | 4:24:26 | 4:24:30 | |
UK had no choice but to use PPP or
PFI agreements. They now find | 4:24:30 | 4:24:35 | |
themselves in the position that
interest rates and charges are | 4:24:35 | 4:24:39 | |
detracting from service provision
when they are already strapped for | 4:24:39 | 4:24:44 | |
cash. This morning, at an all party
Parliamentary group, I heard | 4:24:44 | 4:24:51 | |
evidence of how palliative and end
of life care for children is being | 4:24:51 | 4:24:55 | |
affected by the lack of council
funding. And how the integration of | 4:24:55 | 4:25:00 | |
health and social care is being
restricted. That is outrageous. In | 4:25:00 | 4:25:07 | |
Scotland, PPP and PFI contracts are
largely the responsibility of the | 4:25:07 | 4:25:12 | |
Scottish Government under devolved
competencies. But I cannot be with | 4:25:12 | 4:25:16 | |
my honourable friend from Aberdeen
North that the Scottish Government | 4:25:16 | 4:25:18 | |
took over, it would automatically be
better. The evidence we have in | 4:25:18 | 4:25:27 | |
Scotland would counter that
argument. While it would be | 4:25:27 | 4:25:31 | |
illegitimate to forcibly take
contracts back in-house, it is | 4:25:31 | 4:25:34 | |
important we redress the windfall
profits handed to these companies by | 4:25:34 | 4:25:38 | |
Tory Corporation tax cuts. It is
both legitimate and fair to impose a | 4:25:38 | 4:25:43 | |
windfall tax to be imposed on those
profits. Because, as we have heard | 4:25:43 | 4:25:47 | |
from my honourable friend, that
would hit those corporations where | 4:25:47 | 4:25:53 | |
it would actually get their
attention. In their profits. So, I | 4:25:53 | 4:26:00 | |
would ask all the members in the
House to put the benefits that we | 4:26:00 | 4:26:06 | |
need, the cash injection we need for
local services across the UK first | 4:26:06 | 4:26:12 | |
on their list of priorities and find
whatever way possible, to get either | 4:26:12 | 4:26:17 | |
money back, or impose a windfall tax
on these corporations. Petered out. | 4:26:17 | 4:26:30 | |
Carne said there is very little in
the debate from the other side which | 4:26:30 | 4:26:34 | |
has convinced me why we should
withdraw our new clause. I suspect | 4:26:34 | 4:26:40 | |
there is very little... Order. I beg
the honourable gentleman's pardon. I | 4:26:40 | 4:26:47 | |
have made a mistake in having
thought the Minister had already | 4:26:47 | 4:26:51 | |
addressed the House. I do beg the
Minister's pardon. Minister. There | 4:26:51 | 4:26:58 | |
was a ripple of dissatisfaction when
you fail to call me, which was | 4:26:58 | 4:27:04 | |
almost imperceptible, but
nonetheless. Thank you for | 4:27:04 | 4:27:06 | |
correcting your error. | 4:27:06 | 4:27:12 | |
In this debate we have heard about a
range of issues including the | 4:27:12 | 4:27:16 | |
changes made to the private finance
initiative. I will respond to each | 4:27:16 | 4:27:22 | |
in turn. Let me begin with the bank
levy. Honourable members opposite | 4:27:22 | 4:27:28 | |
have raised a number of objections
to the levy. Made by the Finance | 4:27:28 | 4:27:34 | |
Bill to the government. And the
broader approach to taxation. These | 4:27:34 | 4:27:39 | |
are unjustified. The government
remains committed to make sure banks | 4:27:39 | 4:27:43 | |
make an additional contribution
beyond that paid by other | 4:27:43 | 4:27:45 | |
businesses. This inflicts Bury
reflect the unique risk -- this | 4:27:45 | 4:27:54 | |
reflects the unique risk they pose
to the economy. I felt the Commons | 4:27:54 | 4:27:59 | |
earlier focused far too much on the
bank levy itself, which is indeed | 4:27:59 | 4:28:06 | |
declining but there is good reason
for that because in 2015, when we | 4:28:06 | 4:28:10 | |
the relevant decisions, we recognise
that the risks presented to the | 4:28:10 | 4:28:17 | |
banks had quite considerably eased,
and indeed the stress testing that | 4:28:17 | 4:28:21 | |
the Bank of England has carried out
more recently on the banks, which | 4:28:21 | 4:28:25 | |
has been very rigorous and has been
the first occasion on which not a | 4:28:25 | 4:28:30 | |
single bank has failed that stress
test, is indicative to the fact that | 4:28:30 | 4:28:33 | |
one of the raison d'etre that the
bank levy has started to recede. The | 4:28:33 | 4:28:41 | |
banks are less of a risk than they
were before and therefore charges on | 4:28:41 | 4:28:46 | |
the liabilities that they hold
become less relevant. What the | 4:28:46 | 4:28:49 | |
shadow Secretary for the Treasury
did not focus on so much was the | 4:28:49 | 4:28:53 | |
surcharge to the bank and tax which
came in on the 1st of January 2016, | 4:28:53 | 4:28:59 | |
which is an additional 8% on the
profitability of banks. At the | 4:28:59 | 4:29:05 | |
current time, whereas corporations
were paying 19%, we were now looking | 4:29:05 | 4:29:10 | |
at a total rate of 27%. I thank my
Right Honourable friend for giving | 4:29:10 | 4:29:18 | |
way. Is it not the case in this
chamber that taking both of those | 4:29:18 | 4:29:26 | |
members together, the reduction in
the levy with the surcharge overrule | 4:29:26 | 4:29:31 | |
reduces the configuration over time.
Whisper that out very clearly in the | 4:29:31 | 4:29:35 | |
debate. The amount is receding over
time even with the surcharge. That | 4:29:35 | 4:29:45 | |
is not the case. I will explain some
of the figures in the moment. There | 4:29:45 | 4:29:49 | |
are other elements that are not
being taken into account. One of | 4:29:49 | 4:29:52 | |
them is the additional fact that the
banks are not permitted to take | 4:29:52 | 4:30:00 | |
offset against their profits, the
payments they make by way of PFI, | 4:30:00 | 4:30:08 | |
PPI, I beg your pardon, compensation
payments and indeed that they work | 4:30:08 | 4:30:15 | |
to a more restrictive corporate
interest restriction regime where | 4:30:15 | 4:30:18 | |
they are only allowed to call 25% of
their interest charging profits. | 4:30:18 | 4:30:30 | |
Taking those together, we have a
situation where we have raised from | 4:30:30 | 4:30:33 | |
the bank since 2010 some £44 billion
more than we would have raised if we | 4:30:33 | 4:30:39 | |
treated them as other corporate
businesses. All my members opposite | 4:30:39 | 4:30:43 | |
have quoted that changes to the bank
levy are misleading. Including | 4:30:43 | 4:30:58 | |
introducing, as I said, the 8%
surcharge. Overall, this is the | 4:30:58 | 4:31:03 | |
figure that the honourable lady, I
think would be interested in, is | 4:31:03 | 4:31:07 | |
that rather than reducing revenue,
these changes are expected to raise | 4:31:07 | 4:31:12 | |
£4.6 billion over the current
forecast figure. The average | 4:31:12 | 4:31:16 | |
revenue... Thank you very much. I'm
grateful for the Minister. He is | 4:31:16 | 4:31:23 | |
very generous with his time. We have
just looked at the projections up to | 4:31:23 | 4:31:29 | |
2022 and for the current year we
have 3.0 from the 11 .6 from the | 4:31:29 | 4:31:37 | |
surcharge. When we get to 2022 we
have 1.3 from the levy. That seems | 4:31:37 | 4:31:44 | |
like a significant reduction, almost
a half. Over the forecast period | 4:31:44 | 4:31:52 | |
going forwards, if you take into
account the respective changes, we | 4:31:52 | 4:31:56 | |
will raise £4.6 billion as a
consequence of that. The point that | 4:31:56 | 4:32:01 | |
I am making is that it is just
simply not a right to focus only on | 4:32:01 | 4:32:06 | |
the declining part of this equation,
the reduction in the banking levy | 4:32:06 | 4:32:12 | |
charge, as opposed to also focusing
on the fact that is due to increased | 4:32:12 | 4:32:18 | |
profitability of banks on our watch
Andy surcharge percents taxation | 4:32:18 | 4:32:20 | |
were raising more on the consequence
of those measures. Perhaps we can | 4:32:20 | 4:32:30 | |
get into the nitty-gritty of this.
The average revenue of the bank levy | 4:32:30 | 4:32:36 | |
between its introduction in 2011 and
2015 was around 2.6 billion. As a | 4:32:36 | 4:32:41 | |
result of this package, a deal from
the surcharge and the levy in 2022 | 4:32:41 | 4:32:46 | |
is forecast to be 3.2 billion. By
2023 we will have raised, around 44 | 4:32:46 | 4:32:54 | |
billion in additional bank taxes
since the 2010 election. Honourable | 4:32:54 | 4:32:59 | |
members opposite have also mentioned
that the bank levy is set as a low | 4:32:59 | 4:33:03 | |
level compared to other countries.
In fact, not all financial centres | 4:33:03 | 4:33:07 | |
have a bank level from. -- bank
levy. The United States do not have | 4:33:07 | 4:33:13 | |
one at all. A number of EU countries
introduced after the financial | 4:33:13 | 4:33:18 | |
crisis but we cannot make
comparisons as the rules are | 4:33:18 | 4:33:21 | |
different. We have heard that the
argument that we should reintroduce | 4:33:21 | 4:33:26 | |
tax on bankers paid. One of the aim
is to ensure sustainable long-term | 4:33:26 | 4:33:35 | |
basis on taxing ranks based on --
banks. It was all is intended as a | 4:33:35 | 4:33:45 | |
one-off tax. Reintroducing this tax
would be ineffective and | 4:33:45 | 4:33:48 | |
unsustainable compared to the
package banking measures we have | 4:33:48 | 4:33:53 | |
introduced. Even the last Labour
Chancellor pointed out that it | 4:33:53 | 4:33:56 | |
cannot be repeated without
significant tax avoidance. | 4:33:56 | 4:34:00 | |
Honourable members also proposed
that HM Revenue and Customs soon | 4:34:00 | 4:34:04 | |
publish a register of tax paid by
individual banks under the levy. But | 4:34:04 | 4:34:09 | |
taxpayer confidentiality is rightly
called principle of trust in our tax | 4:34:09 | 4:34:17 | |
system. HM Revenue and Customs does
not publish details by the amount of | 4:34:17 | 4:34:22 | |
tax paid by any individual business.
By this government continues to | 4:34:22 | 4:34:25 | |
support measures to support... We
must balance this with maintaining | 4:34:25 | 4:34:34 | |
confidentiality to maintain
confidence in our system. I thank my | 4:34:34 | 4:34:41 | |
Right Honourable friend. With the
minister except that the | 4:34:41 | 4:34:46 | |
transparency that is being sought is
really in the public demand after | 4:34:46 | 4:34:51 | |
all these years of difficulty that
they face and as a time when so many | 4:34:51 | 4:34:58 | |
communities are finding their
council tax increased and are now | 4:34:58 | 4:35:01 | |
running at 5%. This seems to be an
inherent unfairness in the tax | 4:35:01 | 4:35:05 | |
system. I would not accept that.
This goes back to my point about the | 4:35:05 | 4:35:10 | |
balance of measures that we are
taking. The focus that the | 4:35:10 | 4:35:15 | |
opposition is applying to the bank
levy itself which indeed is | 4:35:15 | 4:35:19 | |
declining through time but I would
point to the surcharge, the | 4:35:19 | 4:35:24 | |
additional 8%, which is 8% more on
corporation tax and other | 4:35:24 | 4:35:28 | |
non-banking businesses are expected
to pay. The banks or so are not | 4:35:28 | 4:35:34 | |
permitted to carry forward interest
rates charges to the same degree as | 4:35:34 | 4:35:40 | |
other businesses and indeed they are
not allowed to offset against tax | 4:35:40 | 4:35:45 | |
the compensation payments they have
been paying over the previous | 4:35:45 | 4:35:49 | |
period. All of those things, as I
said a further £44 billion, in 2010 | 4:35:49 | 4:35:57 | |
compares what they would have paid
had they been a non-banking | 4:35:57 | 4:35:59 | |
business. Thank you for giving way.
Would you not accept that at the | 4:35:59 | 4:36:08 | |
same time the corporation tax is
being reduced overall, I accept the | 4:36:08 | 4:36:11 | |
point about bank levy, we are seeing
conversely a significant increase in | 4:36:11 | 4:36:17 | |
council tax to the public. As I
think the honourable member and my | 4:36:17 | 4:36:25 | |
honourable friend the member for
Croydon South pointed out, as we | 4:36:25 | 4:36:29 | |
have reduced the overall level of
corporation tax as applies to banks | 4:36:29 | 4:36:34 | |
and non-banking businesses, we are
seeing an increase of some 50% over | 4:36:34 | 4:36:38 | |
the period and we have come down
from 28% to 19%. So we have been | 4:36:38 | 4:36:43 | |
raising more revenue as a
consequence of those particular | 4:36:43 | 4:36:45 | |
changes. But finally, new clause
five would require governments to | 4:36:45 | 4:36:52 | |
publish further analysis in the
impact of the bank levy and the | 4:36:52 | 4:36:54 | |
Bill. This is a really been
published. We have also published | 4:36:54 | 4:37:02 | |
information certified about the
overall impact by the package of | 4:37:02 | 4:37:07 | |
measures for banks. It is important
to legislate for those changes now | 4:37:07 | 4:37:10 | |
in order to give certainty on the
tax position so they can give plans | 4:37:10 | 4:37:15 | |
for the future. The changes
contained in clause 33 and schedule | 4:37:15 | 4:37:21 | |
nine complete package measures which
raise it tax from banks which is | 4:37:21 | 4:37:28 | |
more supportive of UK financial
services. We should pass without | 4:37:28 | 4:37:34 | |
amendment. I will now turned by the
amendments tabled by the member for | 4:37:34 | 4:37:39 | |
Walthamstow and a call that she has
made for windfall tax on private | 4:37:39 | 4:37:45 | |
finance initiative companies.
Perhaps I should also pay tribute at | 4:37:45 | 4:37:47 | |
this point to my honourable friends,
the member for Stevenage, who in his | 4:37:47 | 4:37:52 | |
speech outlined the vigorous work
that he has also carried out in this | 4:37:52 | 4:37:57 | |
particular area and in support of
his constituents. There are | 4:37:57 | 4:38:02 | |
approximately 700 operational PFI
products which originated under the | 4:38:02 | 4:38:10 | |
initial PFI -- projects. The vast
majority of these projects were | 4:38:10 | 4:38:15 | |
signed between 1997 and 2010. 620 of
them or 86% of all PFI projects | 4:38:15 | 4:38:23 | |
under the last Labour government.
The government has taken actions to | 4:38:23 | 4:38:26 | |
ensure that the PFI projects deliver
better money for the taxpayer. That | 4:38:26 | 4:38:32 | |
is why we have introduced the
operational PPP efficiency programme | 4:38:32 | 4:38:35 | |
in 2011 which as reported savings
for this project. We're working with | 4:38:35 | 4:38:43 | |
departments to improve day-to-day
effectiveness on the management of | 4:38:43 | 4:38:48 | |
their contracts. We have also made
improvements through PF to to offer | 4:38:48 | 4:38:54 | |
taxpayers better value for money on
projects. The honourable lady argued | 4:38:54 | 4:38:59 | |
that the windfall tax would help
fund a blog services from what she | 4:38:59 | 4:39:02 | |
sees as their profits, I am clear
that it would not. A retrospective | 4:39:02 | 4:39:10 | |
windfall tax would do damage to
public services and with tax NHS | 4:39:10 | 4:39:15 | |
trusts rather than the providers it
is intended to target. Even aside | 4:39:15 | 4:39:20 | |
from these flaws, the amendments
that she has tabled would not work | 4:39:20 | 4:39:24 | |
and I will set that out why in more
detail. It would cost this and | 4:39:24 | 4:39:30 | |
future governments that try to sign
contracts with businesses weather in | 4:39:30 | 4:39:34 | |
PFI or in another area, this country
has a hard-won reputation for tax | 4:39:34 | 4:39:38 | |
certainty. Businesses that have
legitimately enter a contract with | 4:39:38 | 4:39:45 | |
government and it would undermine
this principle. There would be extra | 4:39:45 | 4:39:49 | |
cost for the taxpayer whenever the
government needed to engage the | 4:39:49 | 4:39:52 | |
private sector. Secondly, private
finance initiative contracts, which | 4:39:52 | 4:39:59 | |
you say you have read through, our
long-term agreements which typically | 4:39:59 | 4:40:07 | |
include anti-discriminatory clauses.
This means that targets and PFI | 4:40:07 | 4:40:12 | |
initiatives without applying to
similar projects undertaken by other | 4:40:12 | 4:40:16 | |
companies, taxation can be recovered
from the procuring authorities. A | 4:40:16 | 4:40:21 | |
windfall tax would therefore only be
a tax on local authorities, NHS | 4:40:21 | 4:40:27 | |
trusts and government. I'm sure that
is not the outcome that the | 4:40:27 | 4:40:30 | |
honourable lady is seeking. Madam
Deputy Speaker, amendments one and | 4:40:30 | 4:40:35 | |
two propose that the bank levy could
be extended to private levy groups, | 4:40:35 | 4:40:42 | |
but PFI groups are not banks. They
borrow money to finance products and | 4:40:42 | 4:40:46 | |
earn a return like many other
businesses do. It is not possible to | 4:40:46 | 4:40:52 | |
bring PFI groups within the scope of
the bank levy. It could not be | 4:40:52 | 4:40:57 | |
applied to these groups. The changes
imposed in amendment three and four | 4:40:57 | 4:41:03 | |
would also not work. The last
finance acts introduced corporate | 4:41:03 | 4:41:06 | |
restriction rules to limit the
amount that corporate codes deducts | 4:41:06 | 4:41:15 | |
from taxable profits. Limiting
corporate groups to carry forward | 4:41:15 | 4:41:18 | |
there an unused interest allowance
and offsetting this against future | 4:41:18 | 4:41:23 | |
profits. This would only apply where
the group contains a private | 4:41:23 | 4:41:28 | |
company. The proposed changes put
forward by these amendments are | 4:41:28 | 4:41:37 | |
convoluted. It would fall on the
public bodies holding the PFI | 4:41:37 | 4:41:43 | |
projects to pay extra tax. Even if
one could impose tax liabilities on | 4:41:43 | 4:41:52 | |
PFI providers, this would not be a
sensible approach. Edwards penalise | 4:41:52 | 4:41:56 | |
other companies -- it would penalise
other companies in the same | 4:41:56 | 4:42:02 | |
corporate group and allow them to
avoid the tax. The point that have | 4:42:02 | 4:42:06 | |
been raised concerning tax avoidance
and evasion. I have little to add a | 4:42:06 | 4:42:12 | |
lot has been set out on the early
stages of the Bill. Public group | 4:42:12 | 4:42:18 | |
review is not necessary. This
government an extremely strong | 4:42:18 | 4:42:23 | |
record in tackling tax evasion both
domestically and internationally. | 4:42:23 | 4:42:30 | |
£175 billion that would have gone
unpaid. The UK is the only country | 4:42:31 | 4:42:35 | |
to measure and publish a tax cap
directly -- direct and indirect | 4:42:35 | 4:42:39 | |
taxes every year. As other members
appointed out, our tax cap is one of | 4:42:39 | 4:42:44 | |
the lowest in the world, at 6%, and
this has come down from 7.9% under | 4:42:44 | 4:42:49 | |
Labour in 2005-6. Despite our
demonstrable successes here, the | 4:42:49 | 4:42:53 | |
Government cannot and will not be
complacent, we will continue to keep | 4:42:53 | 4:42:56 | |
the tax system under review at all
times, and I urge the House to | 4:42:56 | 4:42:59 | |
reject the new clauses and
amendments. Just very briefly, the | 4:42:59 | 4:43:07 | |
response from the member had
complacency like a line through a | 4:43:07 | 4:43:16 | |
stick of rock, do a
self-congratulation, there is a | 4:43:16 | 4:43:19 | |
rejection of a review of any area
whatsoever. Not only have the | 4:43:19 | 4:43:25 | |
Government not allowed us to make
any significant changes, they are | 4:43:25 | 4:43:28 | |
not even prepared to listen to us
asking for reviews, for example from | 4:43:28 | 4:43:34 | |
my honourable friend, the member
from welcome stove. I was | 4:43:34 | 4:43:39 | |
acceptable, the Government are not
even prepared to go that far, having | 4:43:39 | 4:43:43 | |
shackled is this much, and I think
is quite disgraceful, and quite | 4:43:43 | 4:43:47 | |
friendly as well, the Government in
this Parliament should be ashamed of | 4:43:47 | 4:43:51 | |
itself that it is shackling the
opposition to this degree, and we | 4:43:51 | 4:43:54 | |
will push this new clause. The
question is that new clause three B | 4:43:54 | 4:44:03 | |
read a second time. As many as are
of the opinion, say "aye". To the | 4:44:03 | 4:44:06 | |
contrary, "no".. To the lobby. | 4:44:06 | 4:44:23 | |
Order! Order, the question is the
new clause three be read a second | 4:45:42 | 4:45:47 | |
time. As many as are of the opinion,
say "aye". To the contrary, "no".. | 4:45:47 | 4:45:56 | |
Tell us for the noes, Amanda Melling
and Nigel Adams. | 4:45:56 | 4:46:09 | |
Lock the doors! | 4:52:13 | 4:52:23 | |
Order! Order! | 4:59:27 | 4:59:37 | |
The ayes to the right, 267, the noes
366. The ayes to the right, 267, the | 4:59:39 | 4:59:56 | |
noes to the left, 306. The noes have
it. The noes habit, unlocked. -- | 4:59:56 | 5:00:07 | |
have it. To move a woman the.
Formerly moved Madam Deputy Speaker. | 5:00:07 | 5:00:19 | |
Amendment three be made. Eisenach.
No smack. Clear the lobby. Eisenach. | 5:00:19 | 5:00:38 | |
Two order! The question is that
amendment three be made, As many as | 5:01:27 | 5:01:34 | |
are of the opinion, say "aye". . On
the contrary, no. Amanda Manning, | 5:01:34 | 5:01:45 | |
and Nigel. Nigel items. -- Adams. | 5:01:45 | 5:01:58 | |
Lobby doors! | 5:08:31 | 5:08:35 | |
Order! Order! The ayes to the right:
265. The noes to the left: 305. | 5:13:10 | 5:13:30 | |
The ayes to the right: 265. | 5:13:30 | 5:13:32 | |
The noes to the left: 305. | 5:13:32 | 5:13:37 | |
The noes have it, the noes have it.
We now come to new clause seven, | 5:13:37 | 5:13:55 | |
with which it will be convened to
consider the new clauses and | 5:13:55 | 5:13:59 | |
amendments listed on the selection
paper. Thank you very much, Madam | 5:13:59 | 5:14:06 | |
Deputy Speaker. With your
permission, I would like to speak | 5:14:06 | 5:14:09 | |
briefly to the SMP's new clause ten,
and to amendment number 12 from my | 5:14:09 | 5:14:15 | |
friend from Alfred North, both of
whom we are supporting at the | 5:14:15 | 5:14:18 | |
opposition, then I will formally
moved into detail of the | 5:14:18 | 5:14:23 | |
opposition's clauses seven and
eight. With regard to clause ten, | 5:14:23 | 5:14:27 | |
the opposition welcomes the
Government's decision to allow the | 5:14:27 | 5:14:30 | |
Scottish Fire and Rescue Service,
and the Scottish police authority to | 5:14:30 | 5:14:33 | |
claimant respective VAT clause. The
clause... To establish a nationwide | 5:14:33 | 5:14:42 | |
Fire and Rescue Service for
Scotland. The Treasury Minister at | 5:14:42 | 5:14:44 | |
the time wrote that based on the
information currently available, it | 5:14:44 | 5:14:50 | |
seems that following the Scottish
Government's plan to reform, neither | 5:14:50 | 5:14:54 | |
the new police authority nor the
Fire and Rescue Service will be | 5:14:54 | 5:14:58 | |
eligible for VAT refunds under
section 33 of the VAT act of 1994. | 5:14:58 | 5:15:03 | |
As colleagues will know, that
government's decision meant the | 5:15:03 | 5:15:06 | |
Scottish police and Fire Service
lost out on VAT refunds worth more | 5:15:06 | 5:15:11 | |
than £30 million, of which the
Scottish police forces lost out on | 5:15:11 | 5:15:16 | |
about £26 million. To some extent, I
could argue this was a sign of | 5:15:16 | 5:15:21 | |
recklessness in a time of austerity,
the Government would leave Scottish | 5:15:21 | 5:15:26 | |
firefighters and police officers to
fend for themselves. While the | 5:15:26 | 5:15:29 | |
opposition welcomes the change of
heart that has come for the | 5:15:29 | 5:15:32 | |
Government in this regard, we
recognise the need for there to be a | 5:15:32 | 5:15:35 | |
proper process put in place for
retrospective claims on VAT refunds. | 5:15:35 | 5:15:41 | |
The view that my honourable friend
from Aberdeen North has imposed | 5:15:41 | 5:15:45 | |
would ensure the processor VAT
refunds is transparent, and the | 5:15:45 | 5:15:49 | |
Scottish Fire and Rescue Service and
the Scottish police authorities | 5:15:49 | 5:15:53 | |
claims for VAT are profit is
properly refunded by the Government. | 5:15:53 | 5:15:55 | |
The review would also ensure that
such an ill-informed decision backed | 5:15:55 | 5:16:00 | |
up by insubstantial reasoning is not
allowed to happen again, that is why | 5:16:00 | 5:16:04 | |
we'll be supporting new clause ten.
If I move on now to amendment 12, as | 5:16:04 | 5:16:12 | |
proposed by my honourable friend
from Ilford North, this amendment | 5:16:12 | 5:16:15 | |
focuses on an issue that I raise
within the finance Bill committee, | 5:16:15 | 5:16:18 | |
the fact that taxi drivers with zero
in mission capable vehicles would | 5:16:18 | 5:16:25 | |
not be exempt from excise duty until
next year. As we discussed in the | 5:16:25 | 5:16:29 | |
committee, and I am sure the mystery
members is, taxi drivers need to | 5:16:29 | 5:16:33 | |
purchase their car over a long
period due to its relatively high | 5:16:33 | 5:16:36 | |
cost. Many years of the country,
taxi drivers are shifting to lower | 5:16:36 | 5:16:42 | |
or zero in mission capable taxis. I
ask the Minister for information on | 5:16:42 | 5:16:46 | |
whether further changes were needed
to the measures in the finance Bill, | 5:16:46 | 5:16:50 | |
so as not to choke off the take-up
of zero mission capable taxis. I was | 5:16:50 | 5:16:56 | |
grateful to the Minister for stating
there would be a consultation around | 5:16:56 | 5:16:58 | |
new measures to occur the spring,
I'm unsure if that has begun yet or | 5:16:58 | 5:17:05 | |
not, perhaps the Minister can
enlighten us on that point. In the | 5:17:05 | 5:17:09 | |
meantime, it seems sensible, as my
honourable friend has proposed, that | 5:17:09 | 5:17:13 | |
we prevent taxi drivers from being
hit when they have taken what is an | 5:17:13 | 5:17:18 | |
environmentally friendly choice, one
which has considerable financial | 5:17:18 | 5:17:23 | |
consequences for them because these
vehicles are more expert -- | 5:17:23 | 5:17:26 | |
expensive than standard taxis.
Having covered both of those matters | 5:17:26 | 5:17:31 | |
in the new clause and amendment
which we are supporting, with your | 5:17:31 | 5:17:34 | |
permission, I would like to former
-- formally move labour's clauses | 5:17:34 | 5:17:40 | |
seven and eight. These require
review of the post relief on stamp | 5:17:40 | 5:17:44 | |
duty for first-time buyers, followed
by an annual report on its | 5:17:44 | 5:17:47 | |
effectiveness. These reviews and the
report would consider the impact of | 5:17:47 | 5:17:51 | |
the new measure on house prices and
housing supplies, and cover who has | 5:17:51 | 5:17:57 | |
benefited from this policy. The need
for such reviews is very clear, the | 5:17:57 | 5:18:03 | |
OB are's assessment of this measure
set out in black and white, it is | 5:18:03 | 5:18:07 | |
likely to increase prices by 0.3%,
and to benefit a very small number | 5:18:07 | 5:18:12 | |
of people. In their words, the main
gainers from the new stamp duty | 5:18:12 | 5:18:17 | |
policy are people who already own
property, not the first time buyers | 5:18:17 | 5:18:22 | |
themselves. They added that some
potential first-time buyers with | 5:18:22 | 5:18:25 | |
smaller deposits might now be able
to borrow a little more, allowing | 5:18:25 | 5:18:29 | |
them to buy properties that they
otherwise would not be able to | 5:18:29 | 5:18:32 | |
afford. But they would be doing that
more expensively was up and this is | 5:18:32 | 5:18:37 | |
in the context where the average
price of a home in England for | 5:18:37 | 5:18:41 | |
first-time buyers has gone up by
almost £40,000 since 2010. In fact, | 5:18:41 | 5:18:49 | |
only about 3500 additional homes are
at it -- predicted to be sold as a | 5:18:49 | 5:18:53 | |
result of this new incentive. They
are now falling, notwithstanding the | 5:18:53 | 5:19:01 | |
change? The House prices are
falling, I do not believe that is | 5:19:01 | 5:19:05 | |
something that is uniform across the
country. There would also be | 5:19:05 | 5:19:09 | |
implications for people if there
were very rapid changes, that would | 5:19:09 | 5:19:14 | |
be a concern for many, but we filled
in this area, where it comes to the | 5:19:14 | 5:19:19 | |
cost for first-time buyers, that
there has not been a significant | 5:19:19 | 5:19:22 | |
change. And if the honourable member
has evidence that there has been a | 5:19:22 | 5:19:25 | |
change for first-time buyers, I
would certainly like to see that, | 5:19:25 | 5:19:28 | |
there may have been a change across
the whole piece, but that has | 5:19:28 | 5:19:31 | |
certainly not been impacting on
those who are trying to buy the | 5:19:31 | 5:19:34 | |
lowest cost houses, those first-time
buyers, they are struggling at the | 5:19:34 | 5:19:39 | |
moment more than ever before, many
of them. We as an opposition would | 5:19:39 | 5:19:42 | |
say that the situation might be
different if this measure was | 5:19:42 | 5:19:45 | |
accompanied by others to promote the
production of genuinely affordable | 5:19:45 | 5:19:48 | |
homes. But as it stands, any
additional homes will not be in | 5:19:48 | 5:19:53 | |
place before the stamp duty cut
takes place, at least those promoted | 5:19:53 | 5:19:58 | |
by any government policy. The
funding allocated in this regard is | 5:19:58 | 5:20:03 | |
woefully inadequate. At the last
debate we had in this chamber, it | 5:20:03 | 5:20:08 | |
was revealed that the infrastructure
monies, such as they are, would not | 5:20:08 | 5:20:11 | |
start to come forward until 2019-20.
That will mean that the stamp duty | 5:20:11 | 5:20:17 | |
cuts cost of £585 million in 2018-19
would not be accompanied by those | 5:20:17 | 5:20:23 | |
housing infrastructures measures.
The same will occur that next year, | 5:20:23 | 5:20:27 | |
and it is only two years later that
the extra funds for the | 5:20:27 | 5:20:32 | |
infrastructure fund will be
forthcoming, but in any case, they | 5:20:32 | 5:20:34 | |
will amount to less than half over
the public purse will have renounced | 5:20:34 | 5:20:39 | |
because of the cut in stamp duty. It
is actually disturbing that the | 5:20:39 | 5:20:43 | |
Government has chosen the plough
ahead with this measure, in the | 5:20:43 | 5:20:46 | |
absence of measures to significantly
boost surprised. I will repeat | 5:20:46 | 5:20:50 | |
because we have had in the previous
debate, for the Government to come | 5:20:50 | 5:20:56 | |
clean about the advice he received
about this measure. What do the | 5:20:56 | 5:20:58 | |
economist and the Treasury say about
this change? In the absence of | 5:20:58 | 5:21:04 | |
measures to substantially increase
supply. Ministers can claim that we | 5:21:04 | 5:21:07 | |
have heard back from the Chancellor
that the OER has not taken the small | 5:21:07 | 5:21:11 | |
cuts of housing measures into its
analysis, but most experts who have | 5:21:11 | 5:21:17 | |
taken them into account, the very
small extent of changes that went | 5:21:17 | 5:21:21 | |
into account, can occur -- concur
with the OB are's original | 5:21:21 | 5:21:24 | |
assessment. Was is also the case
with treasury officials? We deserve | 5:21:24 | 5:21:27 | |
to know, as well do -- as are... If
there is a rise in house prices for | 5:21:27 | 5:21:36 | |
those first-time buyers, as
anticipated by the OB are, I would | 5:21:36 | 5:21:40 | |
point out that the Government's own
assessments of a previous stamp duty | 5:21:40 | 5:21:44 | |
cut, again in the absence of
measures to boost supply of | 5:21:44 | 5:21:48 | |
affordable housing, indicated that
the tax relief has not had and is | 5:21:48 | 5:21:52 | |
just a significant impact on the
improving affordability for | 5:21:52 | 5:21:56 | |
first-time buyers. We also need to
know the regional impact of this | 5:21:56 | 5:22:02 | |
measure. As colleagues mentioned in
the previous debate that we had on | 5:22:02 | 5:22:04 | |
this matter, the upper limit of
£500,000 in high-cost areas and | 5:22:04 | 5:22:09 | |
£300,000 elsewhere means that the
change will not have a positive | 5:22:09 | 5:22:13 | |
impact across huge swathes of the
country aside from reducing the | 5:22:13 | 5:22:19 | |
Avenue -- revenue pot overall,
meeting other taxes on individuals | 5:22:19 | 5:22:23 | |
and companies have to take up the
slack. Public services are going to | 5:22:23 | 5:22:26 | |
be cut further. Of course, for many
people, home ownership is a distant | 5:22:26 | 5:22:32 | |
dream, there is no way they could
afford the necessary deposit. | 5:22:32 | 5:22:35 | |
Today's figures show that real wages
have fallen for the seven -- seventh | 5:22:35 | 5:22:39 | |
month in a row, that should give us
all pause for thought here about | 5:22:39 | 5:22:45 | |
whether this measure is appropriate.
Very happy to. In my constituency | 5:22:45 | 5:22:54 | |
and area, it is very difficult for
first-time buyers to afford a | 5:22:54 | 5:22:57 | |
deposit. They very much welcome the
help the Government is making to | 5:22:57 | 5:23:00 | |
give them a little more of an
opportunity when they are competing | 5:23:00 | 5:23:04 | |
against those people who are selling
properties and more able to afford | 5:23:04 | 5:23:07 | |
as afford a deposit. This is very
welcome, and it is coupled with | 5:23:07 | 5:23:14 | |
measures to increase housing supply,
we are seeing significant and not | 5:23:14 | 5:23:18 | |
necessarily popular increases in the
housing target for areas like my own | 5:23:18 | 5:23:23 | |
decision when C, coupled with what
is going on to make sure houses are | 5:23:23 | 5:23:26 | |
actually built. So I somewhat
contest her point on that. Thank | 5:23:26 | 5:23:34 | |
you, Madam Deputy Speaker. In
practise, most of the commentary | 5:23:34 | 5:23:37 | |
that I have seen from experts and
those working in the Housing | 5:23:37 | 5:23:40 | |
Secretary -- sector, it is suggested
that in areas where there is extreme | 5:23:40 | 5:23:46 | |
competition between different types
of buyers, such as first-time buyers | 5:23:46 | 5:23:51 | |
and those buying additional
properties, etc, investors and | 5:23:51 | 5:23:53 | |
others looking to move to a second
or third property, there is a | 5:23:53 | 5:23:57 | |
potential for such a move to maybe
help initially, but actually the | 5:23:57 | 5:24:01 | |
overall cost increase will also
affect those first-time buyers, so | 5:24:01 | 5:24:07 | |
they would be buying at a higher
price. Most of the impact of this | 5:24:07 | 5:24:11 | |
measure, as indeed, but he finished,
as indeed with previous stamp cut -- | 5:24:11 | 5:24:19 | |
stamp duty changes where there has
not been a boost in supply, as being | 5:24:19 | 5:24:23 | |
to help those selling properties,
not those buying them. That was the | 5:24:23 | 5:24:28 | |
Government's own, the conservative
government's own assessment of the | 5:24:28 | 5:24:31 | |
impact of its previous cut the stamp
duty in the absence of additional | 5:24:31 | 5:24:34 | |
measures to boost supply. Very happy
to. She gave a tour de force during | 5:24:34 | 5:24:40 | |
the committee stage at these
proceedings. On the narrow point | 5:24:40 | 5:24:43 | |
about impact of these changes, in
terms of price, I have a quote from | 5:24:43 | 5:24:48 | |
the director of ISS, Paul Johnson.
He says that although there may be | 5:24:48 | 5:24:50 | |
an increase in the price, this is
not mean first-time buyers are worse | 5:24:50 | 5:24:55 | |
off, they are in general better off.
Instead of paying 100,000 pounds for | 5:24:55 | 5:25:02 | |
a house, they are paying £200,000
for £200,000 worth of house. . I'm | 5:25:02 | 5:25:10 | |
grateful for the intervention, I am
aware of what Mr Johnson has said | 5:25:10 | 5:25:13 | |
about this, but I think he has
fallen into the trap of just looking | 5:25:13 | 5:25:17 | |
at the impact of that change on an
individual prior, and forgetting | 5:25:17 | 5:25:21 | |
that it will have an impact on the
individual housing market, | 5:25:21 | 5:25:24 | |
particularly in areas where there is
very strong supply and demand, and | 5:25:24 | 5:25:28 | |
where change like this is actually
likely to push a price. I agree with | 5:25:28 | 5:25:32 | |
Mr Johnson on many things, but in
this case, the context has been | 5:25:32 | 5:25:36 | |
missed out on, and I think it is
important we bear in mind. Very | 5:25:36 | 5:25:41 | |
important, moving on to more for
content, I will be happy to take the | 5:25:41 | 5:25:45 | |
member's additional interjection...
I just wanted to clarify a point, to | 5:25:45 | 5:25:51 | |
evidence suggests that house prices
are not increasing, in fact the | 5:25:51 | 5:25:55 | |
Royal Institute of chartered
surveyors has echoed this point, | 5:25:55 | 5:25:59 | |
although we are scaremongering, the
actual suggest evidence suggests | 5:25:59 | 5:26:01 | |
they are not rising. Thank you very
much, however I fear that, I am sure | 5:26:01 | 5:26:10 | |
that the member is very well versed
in this area, when it comes across | 5:26:10 | 5:26:13 | |
for first-time buyers, there has
been that increase that is supported | 5:26:13 | 5:26:19 | |
by the evidence, and that is exactly
what we are concerned about within | 5:26:19 | 5:26:23 | |
this area. It is where we need to be
taking action. Indeed, it is the | 5:26:23 | 5:26:32 | |
Government's own rhetoric, they say
they want to help those first-time | 5:26:32 | 5:26:35 | |
buyers, so I think it is important
that we should take them at their | 5:26:35 | 5:26:40 | |
own word, and indeed look at what
the OBR itself sad when it assessed | 5:26:40 | 5:26:48 | |
this policy. Again, I would go back
to whether the Government received | 5:26:48 | 5:26:51 | |
any advice on this issue about its
likely impact, and I think it is his | 5:26:51 | 5:26:56 | |
appointment this disappointing we
have not had any clarity on that | 5:26:56 | 5:27:00 | |
matter. | 5:27:00 | 5:27:01 | |
This concept that there is a price
available to first-time buyers that | 5:27:01 | 5:27:07 | |
differs from anyone else. I can't
accept that there will be markets | 5:27:07 | 5:27:11 | |
segmented markets where there may be
a difference, but if prices are | 5:27:11 | 5:27:17 | |
falling marginally, that will be to
the benefit of all buyers whether | 5:27:17 | 5:27:20 | |
they be the first time or second or
seventh time property buyers. I | 5:27:20 | 5:27:24 | |
think it may be instructive and I am
delighted to hear from the member, I | 5:27:24 | 5:27:30 | |
think it may be instructive for us
to look at the shape of the market, | 5:27:30 | 5:27:34 | |
and which elements may be reducing
price and which may not. I would | 5:27:34 | 5:27:39 | |
like to mention that actually I
looked briefly at some of the media | 5:27:39 | 5:27:43 | |
coverage suggesting that any
reduction seems to be reversed | 5:27:43 | 5:27:45 | |
recently, and in fact, it appears
that the highest cost areas with the | 5:27:45 | 5:27:52 | |
most expensive properties, there may
have been a reduction in Price. But | 5:27:52 | 5:27:57 | |
I would just ask, are those the
properties that first-time buyers | 5:27:57 | 5:28:01 | |
are likely to be looking to unless
they are incredibly well off | 5:28:01 | 5:28:06 | |
initially? Nisi may be, but actually
most of them in this country are not | 5:28:06 | 5:28:11 | |
looking to be moving into properties
worth multiples of £1 million, | 5:28:11 | 5:28:15 | |
they're looking to move into
properties which are much | 5:28:15 | 5:28:19 | |
affordable. And therefore the lack
of action from the Government to | 5:28:19 | 5:28:21 | |
help them is enormously disturbing.
And that is why we do not support | 5:28:21 | 5:28:26 | |
this measure when others would have
been more effective and | 5:28:26 | 5:28:28 | |
particularly, we do not support the
measure in the absence of action | 5:28:28 | 5:28:31 | |
being taken to boost supply of
affordable housing, and I would | 5:28:31 | 5:28:35 | |
mention of course that the
Government definition affordable | 5:28:35 | 5:28:38 | |
houses enables a home with £400,000
for sale, to be classified as | 5:28:38 | 5:28:44 | |
affordable. I am sure that members
on all sides of the House would not | 5:28:44 | 5:28:48 | |
appreciate that definition of
affordability. Now as I mentioned | 5:28:48 | 5:28:55 | |
before, yes. She is generously
giving away which I knowledge, she | 5:28:55 | 5:29:01 | |
talked about some of the constraints
and supply as she specifically | 5:29:01 | 5:29:06 | |
mentioned non-banking by property
developers. Would auction -- where | 5:29:06 | 5:29:09 | |
they would be given planning
permission they choose not to build | 5:29:09 | 5:29:14 | |
up her long period of time. There
are proposals as she would know, in | 5:29:14 | 5:29:17 | |
order to finish developers work that
way, what is the opposition view on | 5:29:17 | 5:29:22 | |
that? Yes I am grateful to the
Member for mentioning that, | 5:29:22 | 5:29:27 | |
actually, labour has ported for some
time as change, and I think they | 5:29:27 | 5:29:36 | |
called the Venezuelan star socialism
from the other side, we are very | 5:29:36 | 5:29:39 | |
concerned, about this, but I would
say we are also concerned about | 5:29:39 | 5:29:42 | |
matters in the planning system which
up up and touched by the Government. | 5:29:42 | 5:29:45 | |
Like the fact that the rules on
viability but all the cards and the | 5:29:45 | 5:29:49 | |
developer pockets and if you want to
develop any social supply, you have | 5:29:49 | 5:29:53 | |
pressures on the affordability of
the rest of that development. So | 5:29:53 | 5:29:56 | |
we're very aware of this, and it is
something we have worked on | 5:29:56 | 5:30:00 | |
consistently. And sadly not always
been supported I am happy that the | 5:30:00 | 5:30:04 | |
member has come onboard with policy
on this one that the Government as | 5:30:04 | 5:30:07 | |
well. When it comes to the general
lack of measures, parting? OK, when | 5:30:07 | 5:30:17 | |
it comes to the lack of action and
other elements of the housing | 5:30:17 | 5:30:24 | |
crisis, which is problematic, given
that the stamp duty change seems to | 5:30:24 | 5:30:28 | |
be the only real significant change
in relation to housing policy, I | 5:30:28 | 5:30:34 | |
think that sadly all of us are
seeing the impact the housing crisis | 5:30:34 | 5:30:37 | |
as members, we see it in our post
back, and our surgeries, and we see | 5:30:37 | 5:30:43 | |
it very sadly on many of our streets
when it comes to rough sleeping. It | 5:30:43 | 5:30:49 | |
has doubled under the Conservatives,
I have to say, if the number one | 5:30:49 | 5:30:53 | |
issue mentioned to me on the
doorstep in my constituency, and I'm | 5:30:53 | 5:30:57 | |
sure that advocates for many other
urban MPs. And even those who do not | 5:30:57 | 5:31:02 | |
see within the constituency, sadly,
probably see it when they come to | 5:31:02 | 5:31:05 | |
work here and of course we had eight
terrible tragedy and that regard | 5:31:05 | 5:31:09 | |
recently. Yes, thank you. The
housing stress is a major driver for | 5:31:09 | 5:31:15 | |
homelessness which the causes are
complex, -- except that the | 5:31:15 | 5:31:18 | |
reduction act is a major step
forward in terms of unlocking | 5:31:18 | 5:31:21 | |
resources and gay people into a home
is the first up -- getting people, | 5:31:21 | 5:31:27 | |
as a lasting forward in their lives?
Thank you I'm preferred | 5:31:27 | 5:31:36 | |
intervention, I will, to some other
contributors to the problem which | 5:31:36 | 5:31:39 | |
are not dealt with in the finance
Bill or indeed any of the budget, in | 5:31:39 | 5:31:42 | |
that regard, while supported many of
the principles within the act, | 5:31:42 | 5:31:50 | |
again, the problem is that without
adequate supply, accommodation, you | 5:31:50 | 5:31:55 | |
can apply new requirements on no --
local authorities and duties, but if | 5:31:55 | 5:32:01 | |
you do not find them and do not
provide the supply to discharge | 5:32:01 | 5:32:05 | |
them, you'll end up in a situation
where they are having to make | 5:32:05 | 5:32:07 | |
choices between individuals and
certainly that is being discovered | 5:32:07 | 5:32:13 | |
in my own local authority. Their
support for the principal of that | 5:32:13 | 5:32:16 | |
act, but without the means to
deliver it, there's considerable | 5:32:16 | 5:32:20 | |
concern actually, so just in
relation, I'm grateful to the Member | 5:32:20 | 5:32:26 | |
for focusing on this issue, and his
focus on it is not reflected sadly | 5:32:26 | 5:32:31 | |
within the budget of the finance
Bill. We only had mention of three | 5:32:31 | 5:32:35 | |
small-scale pilot to help deal with
rough sleeping, which is woefully | 5:32:35 | 5:32:41 | |
inadequate, it is no match to the
commitment of the strategy. Under | 5:32:41 | 5:32:44 | |
labour, we had one and it we had it
down, and eliminated it, and many | 5:32:44 | 5:32:51 | |
areas, we also said that we reserve
housing units for people with a | 5:32:51 | 5:32:55 | |
history of a rough sleeping. Now the
Government has a commitment to | 5:32:55 | 5:33:00 | |
handle by 2022, but to do it has to
change policies. And there is huge | 5:33:00 | 5:33:05 | |
uncertainty, first of all but the
funding of supportive housing that | 5:33:05 | 5:33:07 | |
has led to a reduction in investment
in that area, I necessarily. | 5:33:07 | 5:33:12 | |
Particularly after the negative
lessons around the supporting people | 5:33:12 | 5:33:14 | |
finding, where there was taken away,
we hope that will not help -- will | 5:33:14 | 5:33:19 | |
not happen. We have seen cuts to
council to budget in the area which | 5:33:19 | 5:33:25 | |
meant there is no homelessness
places going to be supported | 5:33:25 | 5:33:28 | |
initially by the County Council in
my area and others as well. It has | 5:33:28 | 5:33:32 | |
been coupled with a reduction in
Social Security a metal support, | 5:33:32 | 5:33:35 | |
that has left a burgeoning numbers
of people slipping on the streets. | 5:33:35 | 5:33:37 | |
Of course this is not just about
rough sleeping, it's generally about | 5:33:37 | 5:33:41 | |
homelessness. And when we to
proficiency, we have seen in the | 5:33:41 | 5:33:47 | |
recent research that the Government
is still failing to tackle the | 5:33:47 | 5:33:51 | |
fundamental problems within our
broken housing market. And they do | 5:33:51 | 5:33:58 | |
not the stamp duty change will deal
with those problems, for example, | 5:33:58 | 5:34:02 | |
the governor promised it will go to
1000 new cup Price starter homes and | 5:34:02 | 5:34:06 | |
22. Three years on, not a single one
has been built and before Christmas, | 5:34:06 | 5:34:13 | |
a Minister said there will be
working at the definition of it so | 5:34:13 | 5:34:16 | |
they don't know what the policy can
deliver they haven't decided on a | 5:34:16 | 5:34:20 | |
definition let alone delivering it.
In contrast, big -- we commit to | 5:34:20 | 5:34:28 | |
build affordable homes and focus on
helping first-time buyers, and build | 5:34:28 | 5:34:33 | |
100,000 discounted first-time homes.
And overall Madam Deputy Speaker, | 5:34:33 | 5:34:40 | |
the figures speak for themselves,
the number of home owning households | 5:34:40 | 5:34:44 | |
rose by 1 million under the last
Labour government, but has fallen | 5:34:44 | 5:34:48 | |
under the Conservatives. And the
number of households using... Biggie | 5:34:48 | 5:34:55 | |
for giving way, but we should
knowledge that the fall in home | 5:34:55 | 5:35:00 | |
ownership began under labour in 23
-- 2003. Thank you, I would accept | 5:35:00 | 5:35:09 | |
that there have been changes from
year to year in the overall level of | 5:35:09 | 5:35:12 | |
home ownership, but actually that
intuitive impact of conservative | 5:35:12 | 5:35:15 | |
government in terms of those
reductions, has been far more | 5:35:15 | 5:35:20 | |
substantial and if you look across
the piece, we have seen the increase | 5:35:20 | 5:35:23 | |
in what we saw in a million, well
no, I think a answer the four -- the | 5:35:23 | 5:35:29 | |
point. It is clear that the figure
speaks for itself obviously on this | 5:35:29 | 5:35:34 | |
point. And the point is particularly
an disturbingly clear from home | 5:35:34 | 5:35:42 | |
ownership for under 45 households.
So for younger people. The number of | 5:35:42 | 5:35:46 | |
people in this situation has gone
down by a million cents 2010. We had | 5:35:46 | 5:35:51 | |
a bit of a debate earlier about home
ownership, and the member stated | 5:35:51 | 5:35:58 | |
that it's not just about home
ownership, we need to think about | 5:35:58 | 5:36:02 | |
other areas as well, that is right.
We have 1.3 additional private | 5:36:02 | 5:36:07 | |
renters in this country, and many of
us on this site would unnecessarily | 5:36:07 | 5:36:10 | |
see that as a good thing. We see
that as a situation where lots of | 5:36:10 | 5:36:13 | |
people are stuck in private renters
accommodation and do not want to be | 5:36:13 | 5:36:16 | |
there. And again we do not see the
finance Bill dealing with that | 5:36:16 | 5:36:22 | |
problem, so I can and... Wu I'm
drawing her attention that we have | 5:36:22 | 5:36:29 | |
one hour, but she is counted that. I
beg your pardon Madam Deputy | 5:36:29 | 5:36:35 | |
Speaker, I want to and quickly with
what I think was a devastating | 5:36:35 | 5:36:39 | |
assessment of the policy by my
honourable friend would talk about | 5:36:39 | 5:36:43 | |
it before, not all members were
there then, and in her words she | 5:36:43 | 5:36:48 | |
said what is really unpopular and
our country is having to step over | 5:36:48 | 5:36:52 | |
rough sleepers while walking home.
Which is unpopular in the country, | 5:36:52 | 5:36:55 | |
is watching other parents take them
to school because the schools cannot | 5:36:55 | 5:37:00 | |
afford basic necessities and what is
deeply unpopular is watching the | 5:37:00 | 5:37:03 | |
number of food banks grow because
jobs do not pay enough. People will | 5:37:03 | 5:37:07 | |
remember that while all of that was
going on, the Tories were busy | 5:37:07 | 5:37:11 | |
cutting stamp duty for people who
could buy houses. I do not think | 5:37:11 | 5:37:14 | |
there will ever forget that, thank
you. Don't we have... The question | 5:37:14 | 5:37:28 | |
is the new clause seven of read a
second time. Stand up again. Calling | 5:37:28 | 5:37:33 | |
Clark. I rise to speak about new
clause ten, and the budget was a | 5:37:33 | 5:37:44 | |
triumph for Scotland and a
vindication of the constructive | 5:37:44 | 5:37:47 | |
approach of the Scottish
Conservatives. And I hope all MPs | 5:37:47 | 5:37:53 | |
can welcome and embrace the budget.
Unfortunately, this and he appeared | 5:37:53 | 5:38:00 | |
to have learned little. They created
the mess for the fire and police | 5:38:00 | 5:38:05 | |
service and it is the Scottish bash
conservative government has to clear | 5:38:05 | 5:38:10 | |
it up. The new clause points a
finger to the fact that there was a | 5:38:10 | 5:38:16 | |
mess in the first place. At your own
creation. This is disappointing, the | 5:38:16 | 5:38:21 | |
Scottish Government messed up and
knew they were as they did so, not | 5:38:21 | 5:38:26 | |
least because they were warned.
Indeed, when they were estimating | 5:38:26 | 5:38:31 | |
the budget of the plan, they
specifically factored in the great | 5:38:31 | 5:38:34 | |
multi-million pound giveaway. They
pressed on regardless, and it's | 5:38:34 | 5:38:39 | |
extraordinary that the labour front
bench are supporting this clause | 5:38:39 | 5:38:44 | |
ten. The nationals made a conscious
decision to deprive As many as are | 5:38:44 | 5:38:50 | |
of the opinion, say "aye". Go-ahead.
I'm -- he says he does not support | 5:38:50 | 5:38:57 | |
more money go into the Scottish
services in Scotland. Thank you very | 5:38:57 | 5:39:02 | |
much for the intervention, but that
is exactly what we are doing. And | 5:39:02 | 5:39:06 | |
that is what this guys conservative
MPs are pushing for from the | 5:39:06 | 5:39:10 | |
Treasury as he knows. Please do.
Thank you for giving way honourable | 5:39:10 | 5:39:18 | |
member, after the Scottish Tory MPs,
how come we ask questions that not | 5:39:18 | 5:39:25 | |
been able to confirm meetings but
they have with treasury to discuss | 5:39:25 | 5:39:32 | |
the Met -- discuss the measures.
Thank you for your intervention, I'm | 5:39:32 | 5:39:36 | |
afraid there is photographic
evidence that my good friend, so he | 5:39:36 | 5:39:42 | |
most certainly did meet the
Chancellor. No, no, you had a go, | 5:39:42 | 5:39:48 | |
thank you very much. They were not
sure changed, they were not unaware | 5:39:48 | 5:39:55 | |
and the money was not stolen. It was
a conscious decision on their part, | 5:39:55 | 5:39:59 | |
and I call culpability for the lost
millions, they have to accept a | 5:39:59 | 5:40:03 | |
squarely lies with the bash them. If
they want to raise money they have | 5:40:03 | 5:40:09 | |
to take responsibility and raise it
themselves, I only hope they do not | 5:40:09 | 5:40:12 | |
do this by inflicting further
punishment on Scottish taxpayers. I | 5:40:12 | 5:40:18 | |
thought you were to intervene, but
please is not far from the | 5:40:18 | 5:40:24 | |
headlight. But the resignation of
the Chief Constable and the delay of | 5:40:24 | 5:40:27 | |
the merger with British Transport
Police is been under spotlight | 5:40:27 | 5:40:32 | |
recently. Surely now is the time for
them to stop manufacturing | 5:40:32 | 5:40:39 | |
grievances out of their own mistakes
and join us in working | 5:40:39 | 5:40:41 | |
constructively to make Scotland a
better place and they should start | 5:40:41 | 5:40:44 | |
back with a review of the police
Scotland structure. Thank you. I | 5:40:44 | 5:40:53 | |
rise to move amendment ten and 11
and in father in my name and the | 5:40:53 | 5:40:58 | |
names of other honourable and right
honourable members from across the | 5:40:58 | 5:41:00 | |
House. Concerning the vehicle excise
duty supplement and particularly how | 5:41:00 | 5:41:07 | |
it applies to the new electronic
zero emission taxes. I should say at | 5:41:07 | 5:41:14 | |
the beginning Madam Deputy Speaker,
as -- I am delighted that this | 5:41:14 | 5:41:21 | |
amendment not only carries cross
party support of support from right | 5:41:21 | 5:41:25 | |
across the country will stop in and
out of London, Brighton, Chef L, | 5:41:25 | 5:41:31 | |
Bradford exited, Cambridge,
Stoke-on-Trent, Bedford Cardiff, | 5:41:31 | 5:41:35 | |
Sunderland, leads. And other cities.
But again, repeating the proper case | 5:41:35 | 5:41:46 | |
this afternoon. I hope this is not
an issue where we cannot find coming | 5:41:46 | 5:41:51 | |
cause, and during the debate on the
budget, and subsequently on the | 5:41:51 | 5:41:57 | |
finance Bill, I welcomed the
announcement on the budget to exempt | 5:41:57 | 5:41:59 | |
zero emission taxes from the vehicle
excise duty supplement by also | 5:41:59 | 5:42:05 | |
cautioned that this exemption will
not kick in until May 20 19. Zero | 5:42:05 | 5:42:14 | |
emission taxes already available for
sale and had hit the streets of the | 5:42:14 | 5:42:17 | |
city and others. This new generation
of the iconic black taxi, not only | 5:42:17 | 5:42:25 | |
provides passengers with a new
degree of confidence, -- comfort and | 5:42:25 | 5:42:30 | |
surroundings including ability to
see the sights of London as you | 5:42:30 | 5:42:33 | |
drive around, but also boasted no
vacantly for the purposes of the | 5:42:33 | 5:42:38 | |
debate, and environmentally primly.
I think members on all side of the | 5:42:38 | 5:42:42 | |
House are aware of how difficult
taxi drivers in this city and across | 5:42:42 | 5:42:45 | |
the country are finding their trade
in the face of aggressive and in | 5:42:45 | 5:42:52 | |
many cases, unfair competitive
practises. But I think the | 5:42:52 | 5:42:56 | |
Government is to look to do what it
can to stop back iconic taxi being | 5:42:56 | 5:42:59 | |
taken | 5:42:59 | 5:43:05 | |
The Government about Bush announced
significant changes, and the | 5:43:05 | 5:43:12 | |
emergency budget, which came into
force on April one, 2017. Under | 5:43:12 | 5:43:16 | |
those changes, drivers of the new
electric taxi would not have to pay | 5:43:16 | 5:43:19 | |
that standard rates based on the
vehicle's CO2 emissions. However, | 5:43:19 | 5:43:25 | |
they would pay a supplement for
expensive cars of £310 per year for | 5:43:25 | 5:43:29 | |
the first five years, as the taxi
costs over £40,000. This means that | 5:43:29 | 5:43:34 | |
drivers of the new zero emission
taxi would be stung for the | 5:43:34 | 5:43:39 | |
supplement to the tune of £1550.
Grants from both the Government | 5:43:39 | 5:43:44 | |
through the office for low
emissions, and for transport for | 5:43:44 | 5:43:49 | |
London recognise the high cost of
the zero emissions capable taxi, and | 5:43:49 | 5:43:53 | |
the risk that it stops drivers from
taking up this environmentally | 5:43:53 | 5:43:57 | |
friendly vehicle. They recognise
that there offering grants of up to | 5:43:57 | 5:44:04 | |
£7,500 of those who are the first to
buy it. The Government will claim | 5:44:04 | 5:44:08 | |
back once this of these grants
through the supplement change. Mr | 5:44:08 | 5:44:15 | |
Deputy Speaker, this reform was
counterintuitive and clearly at odds | 5:44:15 | 5:44:18 | |
with the Government's intention to
make vehicle excise duty fair for | 5:44:18 | 5:44:21 | |
most motorists and reflect
improvements in CO2 emissions. And I | 5:44:21 | 5:44:26 | |
welcome the fact of the Treasury has
acknowledged that this was an | 5:44:26 | 5:44:29 | |
unintended consequence of vehicle
excise duty reforms. In recognition | 5:44:29 | 5:44:35 | |
of this, the Chancellor announced
the change in the autumn budget that | 5:44:35 | 5:44:38 | |
I have already described, but it
will not kick in until 2019, and | 5:44:38 | 5:44:43 | |
that is where these amendments come
in amendments ten, 11, and 12 part | 5:44:43 | 5:44:50 | |
to bring forward the exception to
the new taxi to the day this bill is | 5:44:50 | 5:44:53 | |
passed as an act. It would show to
taxi drivers in the city and across | 5:44:53 | 5:44:58 | |
the country a clear determination on
the part of the Government to help | 5:44:58 | 5:45:01 | |
them drive more environmentally
friendly vehicles, but also I | 5:45:01 | 5:45:05 | |
recognise a significant pressure
that the taxi trade is under. My | 5:45:05 | 5:45:11 | |
amendment go further than the budget
perhaps intended, in terms of the | 5:45:11 | 5:45:16 | |
statement made by the Chancellor,
and that it would attack -- apply to | 5:45:16 | 5:45:19 | |
all taxis over the value of vote --
value of over £40,000. I'm happy to | 5:45:19 | 5:45:26 | |
debate as mayors with the Minister,
but I would hope that this is a | 5:45:26 | 5:45:31 | |
point I have raised on the floor
this House, it was raised in Bill | 5:45:31 | 5:45:34 | |
committee, I have raised it formally
and informally with Ministers, and I | 5:45:34 | 5:45:38 | |
hope a Minister can send out today
and give taxi drivers in my | 5:45:38 | 5:45:43 | |
constituency and across the country
good news that the Government | 5:45:43 | 5:45:47 | |
recognises the issues and is
determined to make sure that the | 5:45:47 | 5:45:49 | |
exception kicks in earlier than
April 2019 stop because otherwise, | 5:45:49 | 5:45:54 | |
we have a perverse incentive created
by the Government for drivers to | 5:45:54 | 5:45:57 | |
delay taking up a new
environmentally friendly taxi, | 5:45:57 | 5:46:02 | |
because they know they will get
better value from 2019, and clearly | 5:46:02 | 5:46:07 | |
none of us want to see that happen,
which is why I think so many members | 5:46:07 | 5:46:11 | |
from across the House and country
have signed this amendment. I would | 5:46:11 | 5:46:17 | |
like to conclude, Mr Deputy Speaker,
by making a political point, and I | 5:46:17 | 5:46:21 | |
hope that the Minister and members
opposite take it in the spirit that | 5:46:21 | 5:46:24 | |
it is intended. There are men --
many taxi drivers in my constituency | 5:46:24 | 5:46:29 | |
across London and the country who
are not natural Labour voters. In | 5:46:29 | 5:46:35 | |
fact, they are in many cases or have
been died in the more conservative | 5:46:35 | 5:46:41 | |
voters, -- dyed in the wool
conservative voters, and they cannot | 5:46:41 | 5:46:46 | |
understand why the Conservative
Party has seemingly turned their | 5:46:46 | 5:46:48 | |
backs on a group of people who are
arguably the best example of the | 5:46:48 | 5:46:51 | |
small business entrepreneurial
spirit that this country embodies, | 5:46:51 | 5:46:56 | |
in terms of our small businesses.
Many of them have looked to the | 5:46:56 | 5:47:00 | |
Conservative Party as their
champion, and have felt very badly | 5:47:00 | 5:47:05 | |
left behind, not just because of
issues around taxes, but when you | 5:47:05 | 5:47:09 | |
look in particular at the way the
Conservative Party has actively | 5:47:09 | 5:47:12 | |
lobbied for a company which is
destroying the taxi trade, not | 5:47:12 | 5:47:16 | |
through fair competition but through
artificially low fares created by | 5:47:16 | 5:47:21 | |
aggressive tax avoidance, low wages,
reckless and irresponsible | 5:47:21 | 5:47:26 | |
approaches to the managing --
management of data, and the | 5:47:26 | 5:47:31 | |
Conservative Party has actively
lobbied for Cooper. They have an | 5:47:31 | 5:47:35 | |
opportunity to date to listen to the
taxi drivers across the country that | 5:47:35 | 5:47:40 | |
would make a simple change that
would bring forth the policy of the | 5:47:40 | 5:47:45 | |
Chancellor to a point in time where
it would actually make a difference | 5:47:45 | 5:47:47 | |
to taxi drivers. In so doing, they
may rebuild some trust in the | 5:47:47 | 5:47:52 | |
Conservative Party. It is clearly in
my interest that the Government does | 5:47:52 | 5:47:56 | |
not listen to a word I have said, he
continues to give taxi drivers in my | 5:47:56 | 5:47:59 | |
constituency and across the country
the impression that the Conservative | 5:47:59 | 5:48:04 | |
Party simply doesn't care, but I
know from talking to taxi drivers in | 5:48:04 | 5:48:08 | |
my constituency and their families,
and many across the country, that | 5:48:08 | 5:48:14 | |
unless we get this exemption
through, they will not be able to | 5:48:14 | 5:48:16 | |
afford to take up to zero emission
capable taxi, and it is arguable | 5:48:16 | 5:48:20 | |
whether many of them would be able
to afford to do it anyways. But I am | 5:48:20 | 5:48:23 | |
less interested in the party
politics of this debate, and far | 5:48:23 | 5:48:26 | |
more interested in making sure taxi
drivers in my constituency across my | 5:48:26 | 5:48:30 | |
city, and across the country get a
fair hearing and deal from this | 5:48:30 | 5:48:33 | |
government. I do need to hear from
the SNP spokesperson, so I will say | 5:48:33 | 5:48:42 | |
if you could try to keep it short
right now, at least to the six most | 5:48:42 | 5:48:49 | |
speakers. I am pleased to speak in
favour of the reforms the stamp duty | 5:48:49 | 5:48:52 | |
for first-time buyers, and I will
get to the opposition amendment. The | 5:48:52 | 5:48:55 | |
changes to stamp duty means that 95%
of first-time buyers will pay less | 5:48:55 | 5:49:00 | |
tax, 80% will pay no tax at all, and
first-time buyers will be getting a | 5:49:00 | 5:49:04 | |
tax reduction of up to £5,000, which
will be hugely welcomed by younger | 5:49:04 | 5:49:10 | |
people in my constituency. There are
probably three reasons I support | 5:49:10 | 5:49:14 | |
this reform. The first, it is part
of a wider rebalancing of the tax | 5:49:14 | 5:49:19 | |
system towards younger people and
people who do not own a home of | 5:49:19 | 5:49:22 | |
their own. In the context, it is
worth thinking about the measures of | 5:49:22 | 5:49:26 | |
the taken in 2015 the mature form
the track statement of second homes. | 5:49:26 | 5:49:33 | |
Those reforms increased stamp duty
on the purchase of additional | 5:49:33 | 5:49:36 | |
properties, so on one hand, we have
this reform, which supports | 5:49:36 | 5:49:41 | |
first-time Bidart -- buyers, and on
the other hand, we have a set of | 5:49:41 | 5:49:44 | |
reforms which reduce the amount of
housing as an investment asset. | 5:49:44 | 5:49:48 | |
Together, these tilt the balance of
the system towards younger people | 5:49:48 | 5:49:53 | |
and first-time buyers, and there I
say they are redistributing manners, | 5:49:53 | 5:49:58 | |
I'm surprised the opposition is
opposing them, given that young | 5:49:58 | 5:50:00 | |
people are those most affected by
the failure over generations to not | 5:50:00 | 5:50:05 | |
build enough houses in the country,
it is right to tip the system | 5:50:05 | 5:50:08 | |
towards them. Earlier this debate,
the member offered the Minister a | 5:50:08 | 5:50:15 | |
suggestion for revenue rates, and I
wonder if I can do the same thing, | 5:50:15 | 5:50:18 | |
saying we should go even further in
rebalancing the tax system, | 5:50:18 | 5:50:22 | |
considering whether it is time for a
reform of the private residence | 5:50:22 | 5:50:25 | |
relief. Ministers will recall in
2013 that we changed the way the | 5:50:25 | 5:50:29 | |
exception worked to make a fair
system and some of the abuses that | 5:50:29 | 5:50:33 | |
have an under labour, and I would
encourage him to look again at this | 5:50:33 | 5:50:36 | |
issue now, particularly given the
number of other countries have | 5:50:36 | 5:50:39 | |
tighter restrictions on the
important exemption. It would come | 5:50:39 | 5:50:46 | |
the 75 antitax avoidance measures we
have already taken, which have | 5:50:46 | 5:50:51 | |
raised £160 billion for public
services. The second reason I | 5:50:51 | 5:50:53 | |
support these measures is because as
many economists have pointed out, | 5:50:53 | 5:50:59 | |
stamp duty is a fundamentally bad
tax which reduces mobility. The | 5:50:59 | 5:51:03 | |
Chancellor is obviously unable to
abolish it at this stage, | 5:51:03 | 5:51:05 | |
considering he is still in the
process of cleaning up the biggest | 5:51:05 | 5:51:09 | |
deficit in this country's history,
which disgracefully the company this | 5:51:09 | 5:51:14 | |
country was barring a quarter of all
the money spent, but we are making | 5:51:14 | 5:51:17 | |
some important progress. These
changes will and the absurd slab | 5:51:17 | 5:51:24 | |
system, which... And the £300
million tax cut. This further | 5:51:24 | 5:51:29 | |
production in STL T, this is welcome
to young people, and I hope they | 5:51:29 | 5:51:35 | |
will continue to chop away at this
bad tax. Thirdly, they can provide | 5:51:35 | 5:51:40 | |
immediate support for young people
and people who do not own their own | 5:51:40 | 5:51:44 | |
property, even as would bring about
longer-term reforms to increase | 5:51:44 | 5:51:47 | |
supply. Where I agreed with the
honourable member for Oxford East | 5:51:47 | 5:51:51 | |
was that we must have higher supply,
because since 1979, France has been | 5:51:51 | 5:51:56 | |
building twice as many houses than
this country, and as a result, their | 5:51:56 | 5:52:00 | |
house prices have gone house -- Don
up twice as fast. Why are so many of | 5:52:00 | 5:52:09 | |
the housing measures delayed for at
least a year before coming to proper | 5:52:09 | 5:52:20 | |
implementation. I'm afraid I am not
sure what he is driving at, but in | 5:52:20 | 5:52:26 | |
conscious of time, Mr Speaker, I
support these measures because | 5:52:26 | 5:52:28 | |
they'll provide immediate benefit,
and they are part of a wider | 5:52:28 | 5:52:33 | |
strategy to support first-time
buyers, the new lifetime eyesight, | 5:52:33 | 5:52:39 | |
which gives people a 25% bonus as a
safe deposit, and a huge support for | 5:52:39 | 5:52:45 | |
shared ownerships and new supply
measures like the housing for | 5:52:45 | 5:52:48 | |
structure fund, and a huge increase
in funding for affordable housing in | 5:52:48 | 5:52:52 | |
the 2015 spending review. Mr Deputy
Speaker, my younger constituents | 5:52:52 | 5:52:55 | |
will warmly welcome the end of stamp
duty for first-time buyers, and many | 5:52:55 | 5:53:00 | |
my older constituents's parents and
grandparents will do so as well. The | 5:53:00 | 5:53:05 | |
honourable member for Oxford East
thought -- I thought made the case | 5:53:05 | 5:53:08 | |
for her -- against her own amendment
by drawing on details already exist. | 5:53:08 | 5:53:15 | |
An estimate... They know the
significant degrees of uncertainty | 5:53:15 | 5:53:23 | |
around her. I welcome the OBR's
reform, it makes things more | 5:53:23 | 5:53:27 | |
transparent, and is right that the
OBR is cautious, because Gordon | 5:53:27 | 5:53:32 | |
Brown had fiddled the figures, and
made a disaster by doing so. They | 5:53:32 | 5:53:38 | |
are right be cautious, and the
uncertainty around these measures is | 5:53:38 | 5:53:48 | |
massive. I'm sure -- we made this
race four times more money than | 5:53:48 | 5:53:55 | |
initially thought. Even if you did
believe that all of this £5,000 | 5:53:55 | 5:54:02 | |
would be entirely capitalised into
the price of the House, my | 5:54:02 | 5:54:06 | |
constituents would be £5,000 better
off as a result, which is still a | 5:54:06 | 5:54:11 | |
better dish still significant
number. Mr Debbie Speaker, I am | 5:54:11 | 5:54:15 | |
hugely glad to be supporting these
reforms today and oppose the | 5:54:15 | 5:54:20 | |
opposition's amendment. Thank you
very much, Mr Deputy Speaker. I want | 5:54:20 | 5:54:28 | |
to talk to new clause ten, which is
the name of my self and my | 5:54:28 | 5:54:33 | |
honourable collies, I would like to
move the new clause on behalf of the | 5:54:33 | 5:54:36 | |
SNP. We are tight for time, I'll
just say can you just give us our | 5:54:36 | 5:54:42 | |
money back? Please, thanks. I will
expand on that a little further... | 5:54:42 | 5:54:48 | |
My party, like other supported the
SNP. However, given that the SNP | 5:54:48 | 5:54:58 | |
government Scotland was warned at
the time that is the lack of this | 5:54:58 | 5:55:04 | |
would happen, they chose to go with
it anyways, and we now have a police | 5:55:04 | 5:55:07 | |
force which the public, many
politicians, and many members of the | 5:55:07 | 5:55:11 | |
police themselves are unhappy with,
would you not be better pleading | 5:55:11 | 5:55:16 | |
with her colleagues at Holyrood to
fix the problem, rather than trying | 5:55:16 | 5:55:20 | |
to divert attention onto
something... Order! Please. We're | 5:55:20 | 5:55:27 | |
very short on. I want to get the
leave review party,. Thank you very | 5:55:27 | 5:55:35 | |
much, Mr Deputy Speaker. I will talk
about his why we should be given the | 5:55:35 | 5:55:39 | |
rebate and why make sense this would
happen. The police and Fire | 5:55:39 | 5:55:45 | |
Departments of Scotland have been
paying an annual charge of £35 | 5:55:45 | 5:55:48 | |
million a year in VAT. We repeatedly
asked for these services to be | 5:55:48 | 5:55:56 | |
excluded from the VAT, and we asked
about this 140 times, that was just | 5:55:56 | 5:56:00 | |
the SNP asking for it. Another group
of people asked for, we asked for | 5:56:00 | 5:56:05 | |
the on so many occasions and given
so many excuses why it could not be | 5:56:05 | 5:56:08 | |
done. They said there was no
justification for a refund, the | 5:56:08 | 5:56:13 | |
Chancellor himself said that under
EU law, they could not -- would not | 5:56:13 | 5:56:17 | |
be able to recover the VAT. They
said these things. That has always | 5:56:17 | 5:56:22 | |
been the case that the fair thing
for the Government to do was to give | 5:56:22 | 5:56:28 | |
police and Fire Services access to
the VAT rebate. England has that, | 5:56:28 | 5:56:34 | |
that is a national organisation,
London legacy has access to the VAT | 5:56:34 | 5:56:38 | |
rebate, that is also a national
organisation. Now suddenly, the | 5:56:38 | 5:56:41 | |
decision has been taken them at the
welcome decision to give us this | 5:56:41 | 5:56:46 | |
rebate, to put this in the place.
But nothing has changed! Nothing has | 5:56:46 | 5:56:50 | |
changed to cause this to happen. The
situation is not any different to | 5:56:50 | 5:56:54 | |
what it was three years ago. The
police and Fire Services are | 5:56:54 | 5:56:57 | |
structured exactly the same as they
were three sick -- three years ago, | 5:56:57 | 5:57:00 | |
yet somehow the Government has
decided we are now eligible for the | 5:57:00 | 5:57:03 | |
rebate and were not previously. The
only fair thing to do, and I would | 5:57:03 | 5:57:09 | |
encourage the member from Gordon to
read the amendment, because it does | 5:57:09 | 5:57:12 | |
not do but he thought it did, this
asked for a review and for the | 5:57:12 | 5:57:16 | |
Government to look at implications
of giving us the money back that our | 5:57:16 | 5:57:20 | |
police and Fire Services have
claimed. | 5:57:20 | 5:57:26 | |
This is a matter of fairness, they
should always be available to the | 5:57:26 | 5:57:31 | |
Scottish services, this money should
be available to spend it on the | 5:57:31 | 5:57:34 | |
police and our services so we can
ensure that we have the best | 5:57:34 | 5:57:37 | |
possible services so that we can do
things like tackle public-sector pay | 5:57:37 | 5:57:40 | |
gap within the services. Now, we are
asking the Government to look at the | 5:57:40 | 5:57:47 | |
consequences that would occur if the
money was retrospectively available | 5:57:47 | 5:57:50 | |
to claim back. And I would contend
that the consequences that will be | 5:57:50 | 5:57:55 | |
created is that we will be able to
spend more money on the police and | 5:57:55 | 5:57:59 | |
fire and counter the fact that it
has been reduced by the Government. | 5:57:59 | 5:58:02 | |
We could go into a situation where
things would be better for police | 5:58:02 | 5:58:06 | |
and fire in Scotland and as I said,
Mr Deputy speak her, this is a | 5:58:06 | 5:58:10 | |
matter of fairness. Nothing has
changed except the Government | 5:58:10 | 5:58:16 | |
position and give us back the money
they owed us. Thank you Mr Deputy | 5:58:16 | 5:58:24 | |
Speaker, I would like to return to
clause seven if I may, there's been | 5:58:24 | 5:58:28 | |
a failure of successive governments
tackle the issue with the housing | 5:58:28 | 5:58:31 | |
stock, since the 1970s we have on
average built 160,000 new homes per | 5:58:31 | 5:58:36 | |
year in England. The consensus is
that we need to build between 250 | 5:58:36 | 5:58:41 | |
and two under 75 more to keep
overpopulation growth and ageing | 5:58:41 | 5:58:48 | |
population and tackle yourself
undersupply. And I is why I am | 5:58:48 | 5:58:50 | |
pleased the Government is taking
steps to address this with | 5:58:50 | 5:58:54 | |
accelerated house-building resulting
and the increased supply of 270,000 | 5:58:54 | 5:58:56 | |
houses the last year. Increased
demand and historic lack of supply | 5:58:56 | 5:59:01 | |
has been pushing prices up. I never
stock prices have risen by 7% since | 5:59:01 | 5:59:10 | |
9080, and this issue is not uniform.
Areas such as the Southeast has | 5:59:10 | 5:59:14 | |
suffered more than others seeing a
369% increase in prices since 2005. | 5:59:14 | 5:59:19 | |
And I see this in my own family,
with many of my young cousins, in | 5:59:19 | 5:59:26 | |
their 20s buying homes on average
salaries as their parents always did | 5:59:26 | 5:59:28 | |
before them. But this is not the
case in the southeast that other | 5:59:28 | 5:59:32 | |
parts of the country. Large price
hikes will obviously affect young | 5:59:32 | 5:59:35 | |
people more as they are typically on
lower incomes, and struggle to raise | 5:59:35 | 5:59:39 | |
the capital needed to save it about
-- deposit. When I bought my first | 5:59:39 | 5:59:44 | |
time in the 90s, around 65% of my
friends are doing the same, we just | 5:59:44 | 5:59:48 | |
earned average incomes. Now less
than 27% of 25-30 -year-olds are | 5:59:48 | 5:59:54 | |
homeowners and I would be willing to
bet that not many are in an average | 5:59:54 | 5:59:59 | |
house price of salary £20,000. And
the point was highlighted to me by | 5:59:59 | 6:00:07 | |
young couple living in my
constituency, living in high rent | 6:00:07 | 6:00:11 | |
cost unable to make substantial
savings towards a deposit. They're | 6:00:11 | 6:00:16 | |
grateful for the schemes introduced
by the Government to help them and | 6:00:16 | 6:00:19 | |
save the deposit. And changes to the
stamp duty, will also help | 6:00:19 | 6:00:23 | |
first-time buyers like my
constituents. To reduce the size of | 6:00:23 | 6:00:26 | |
the savings they need to cover the
costs of having a home. There were | 6:00:26 | 6:00:31 | |
no longer pay stamp duty for
properties up to a threshold of | 6:00:31 | 6:00:35 | |
£300,000 and the cost over £3000 on
properties up to half a million. | 6:00:35 | 6:00:42 | |
This should mean 80% of first-time
buyers will pay no stamp duty at | 6:00:42 | 6:00:46 | |
all, and this policy removes a
barrier one of the barriers, and | 6:00:46 | 6:00:52 | |
helps people take have an
opportunity to do to reach a dream | 6:00:52 | 6:00:54 | |
that many achieved in the 20s and
30s. Deputy Speaker I would like to | 6:00:54 | 6:01:03 | |
speak to new clause two in my name
and that of the, my colleague, and a | 6:01:03 | 6:01:10 | |
few words about amendment 13 of 14,
which is a technical point of some | 6:01:10 | 6:01:15 | |
importance raised by my colleague
who regrets he cannot be here. Under | 6:01:15 | 6:01:22 | |
the new class, we have asked the
budget responsibility to produce a | 6:01:22 | 6:01:32 | |
estimate of the yield it can be
obtained from a penny in the pound | 6:01:32 | 6:01:37 | |
on income tax at 1% increase in the
standard higher and dividend rate. | 6:01:37 | 6:01:45 | |
We are doing this not to give the
Treasury computer some exercise I'm | 6:01:45 | 6:01:49 | |
sure it gets plenty, but to produce
an estimate which we can subscribe | 6:01:49 | 6:01:52 | |
to of the revenue base that would
exist for an earmarked tax to | 6:01:52 | 6:02:02 | |
financial the health service. This
is not to have that debate, but I | 6:02:02 | 6:02:06 | |
want to raise the basic principle of
how the Treasury might finance it. | 6:02:06 | 6:02:12 | |
We can go back to the middle of
Laster, when the chief executive of | 6:02:12 | 6:02:17 | |
NHS England produced an estimate of
roughly six billion and required to | 6:02:17 | 6:02:21 | |
keep the NHS sustainable footing and
avoid a serious winter crisis. About | 6:02:21 | 6:02:28 | |
4 billion for the NHS itself and 2
billion for the social through local | 6:02:28 | 6:02:32 | |
councils. Now in the event the
Treasury and the budget came up with | 6:02:32 | 6:02:40 | |
2 billion roughly, arguments about
how much was real, let's say 2 | 6:02:40 | 6:02:45 | |
billion, we had the winter crisis
anyway and has been discussed many | 6:02:45 | 6:02:48 | |
cases here, the law probably weights
and elderly people waiting in | 6:02:48 | 6:02:55 | |
hospitals for placements, the stress
on staff, and we hope that's over. | 6:02:55 | 6:03:00 | |
We cannot be certain, but the issue
I want to raise is how we prevent | 6:03:00 | 6:03:05 | |
this happening in the next financial
year. The proposal that we have an | 6:03:05 | 6:03:14 | |
allocation of revenue of a small
increase in income tax, comes from a | 6:03:14 | 6:03:18 | |
commission which my party set up
consisting, not just to support us, | 6:03:18 | 6:03:23 | |
but lots of independent people with
authority and NHS, the former chief | 6:03:23 | 6:03:27 | |
executive of NHS England. The former
chief executive of the Patients' | 6:03:27 | 6:03:34 | |
Association of the Royal College of
nurses, former chair of Royal | 6:03:34 | 6:03:41 | |
College of General practitioners,
amongst others of similar status. | 6:03:41 | 6:03:42 | |
And they argued that the only
sensible practical way now of | 6:03:42 | 6:03:47 | |
preventing this endless recurring
financial crisis and the health | 6:03:47 | 6:03:53 | |
service is to have a dedicated
source of tax revenue. Now | 6:03:53 | 6:03:57 | |
traditional there have been two
objections to this, one was that | 6:03:57 | 6:04:00 | |
public opinion, they do not like
higher taxes. But the survey from a | 6:04:00 | 6:04:09 | |
Skype poll suggest that people were
confident that the money would be | 6:04:09 | 6:04:13 | |
allocated about 70% would support an
income tax increase of this kind and | 6:04:13 | 6:04:18 | |
other polls suggest the same. The
second objection is a traditional | 6:04:18 | 6:04:23 | |
treasury objection that this makes
public spending and taxation more | 6:04:23 | 6:04:27 | |
difficult to manage. I would cite as
a counter to that, the recent | 6:04:27 | 6:04:33 | |
comments of the Bible -- former head
of the Treasury, who presided over | 6:04:33 | 6:04:38 | |
the Treasury in the five years when
I was in the coalition government. | 6:04:38 | 6:04:42 | |
Massively impressive a man, I
confess we did not always agree, he | 6:04:42 | 6:04:47 | |
tended to regard public spending as
some kind of disease, but | 6:04:47 | 6:04:52 | |
nonetheless, a very authoritative
source and he appears now to have | 6:04:52 | 6:04:56 | |
been converted to the idea that this
is the only way in which the NHS can | 6:04:56 | 6:05:00 | |
be put on a properly sustainable
footing. By looking ahead to the | 6:05:00 | 6:05:05 | |
next financial year, which is what
we are asking the Government to do, | 6:05:05 | 6:05:08 | |
the question is how are we going to
avoid the kind of problems we have | 6:05:08 | 6:05:12 | |
this year. Well one is that the
Government will simply muddle | 6:05:12 | 6:05:16 | |
through and its current spending
assumptions probably in the next | 6:05:16 | 6:05:20 | |
budget in the autumn, the
Chancellor, but another rabbit out | 6:05:20 | 6:05:25 | |
of the House, the other alternative
of course is hope that there is some | 6:05:25 | 6:05:29 | |
kind of advance payment of the
Brexit dividend, and I think we're | 6:05:29 | 6:05:33 | |
familiar with those arguments around
the 300 million a week that was | 6:05:33 | 6:05:38 | |
supposed to come back. I think 18
billion a year, that we have been | 6:05:38 | 6:05:43 | |
promised. I think we now know that
this is almost entirely phoney and | 6:05:43 | 6:05:48 | |
cannot be relied upon, of course it
was at a gross estimate, we know we | 6:05:48 | 6:05:53 | |
are paying out at least 40 billion
and continued annual payments | 6:05:53 | 6:05:57 | |
throughout the transition period.
Possibly additional payments on top | 6:05:57 | 6:06:00 | |
of that. And even on it fairly
charitable view, were talking about | 6:06:00 | 6:06:05 | |
five or six years before there is
any dividend and even that depends | 6:06:05 | 6:06:09 | |
on a continued constant rate of
growth, and if growth slows down, as | 6:06:09 | 6:06:15 | |
it certainly will post Brexit, this
dividend may not appear. Simply | 6:06:15 | 6:06:19 | |
cannot rely on the Brexit dividend,
and get past finance it, some new | 6:06:19 | 6:06:25 | |
mechanism needs to be found and this
is the purpose of our amendment to | 6:06:25 | 6:06:29 | |
open up that discussion. I do not
propose to move the amendment to a | 6:06:29 | 6:06:34 | |
division, but I would be interested
in getting the Treasury view on how | 6:06:34 | 6:06:37 | |
they currently regard to taxation,
whether they're thinking has | 6:06:37 | 6:06:41 | |
advanced in any way. I would like to
say a few words and support of my | 6:06:41 | 6:06:46 | |
colleague, one of whose constituents
has raised a substantial point | 6:06:46 | 6:06:55 | |
around a revenue proposal, and the
finance bill which relates to | 6:06:55 | 6:06:58 | |
dormant companies and their pension
funds. The proposal which the | 6:06:58 | 6:07:03 | |
revenue is making is that these
should be this owned and | 6:07:03 | 6:07:07 | |
deregistered when they have become
dormant. The reasoning behind this | 6:07:07 | 6:07:12 | |
is sensible, that some of these
funds have been used for scams, add | 6:07:12 | 6:07:19 | |
to the cost of the public, and
indeed and the revenue. And they | 6:07:19 | 6:07:25 | |
propose that effectively the
register them when that happens. Now | 6:07:25 | 6:07:32 | |
my colleague's constituent points
out that there are some unintended | 6:07:32 | 6:07:35 | |
consequences of this proposal. One
of which is there are quite a lot of | 6:07:35 | 6:07:43 | |
cases where there are dormant
companies, but where they have had | 6:07:43 | 6:07:47 | |
their pensions taken over by other
companies and other cases where a | 6:07:47 | 6:07:52 | |
company, a sponsoring company may be
dormant, but the trustees have kept | 6:07:52 | 6:07:56 | |
it going on a pay and basis, and
further sustainable. The other | 6:07:56 | 6:08:06 | |
aspect of the amendment, which
causes a potential problem, is that | 6:08:06 | 6:08:10 | |
these registration could happen
after one month of a closer. A good | 6:08:10 | 6:08:16 | |
example recently would be Monarch
Airlines, but as we all know, it | 6:08:16 | 6:08:19 | |
takes a lot more than a month to
wind up the pension scheme, so this | 6:08:19 | 6:08:22 | |
is a bit... I recognise and they
recognise that this is a | 6:08:22 | 6:08:31 | |
discretionary revenue, and it may be
that the Minister will say we should | 6:08:31 | 6:08:36 | |
trust the revenue to trust to get it
right. It menu bar sensible of the | 6:08:36 | 6:08:40 | |
cinema suggest, to have a car about
to do cases that do not follow | 6:08:40 | 6:08:48 | |
within it, and the purpose of the of
them it is to suggest that the | 6:08:48 | 6:08:53 | |
activities of the registration
should be restricted to the Lasix | 6:08:53 | 6:08:55 | |
just because that is when the scams
occurred and we do not need to go | 6:08:55 | 6:09:00 | |
into history. This should
specifically be a carveout for cases | 6:09:00 | 6:09:04 | |
when there may have well been a
succession of it pension fund, and a | 6:09:04 | 6:09:11 | |
provision providing for that that
there should be at least one dormant | 6:09:11 | 6:09:13 | |
employer. And there should be a
two-year period allowed for pension | 6:09:13 | 6:09:20 | |
funds that have been maintained for
some time and viable. I don't | 6:09:20 | 6:09:29 | |
pretend my colleague does not
pretend that these necessarily are | 6:09:29 | 6:09:31 | |
perfect solutions to the problem,
but I just ask that the Treasury | 6:09:31 | 6:09:35 | |
Minister would look at the issue
here and reflect on it and come up | 6:09:35 | 6:09:43 | |
with a better solution. Thank you Mr
Deputy Speaker. Thank you Mr Deputy | 6:09:43 | 6:09:51 | |
Speaker, and given the limited time
that we have, I will intend to focus | 6:09:51 | 6:09:56 | |
most of my remarks on those
amendments and new clauses that have | 6:09:56 | 6:10:01 | |
been spoken to in this debate if I
may begin with new plus eight and | 6:10:01 | 6:10:05 | |
seven. Seeking reviews of the
operation are the exemption first | 6:10:05 | 6:10:12 | |
time buyers. Housing Mr Deputy
Speaker, as we know is one of the | 6:10:12 | 6:10:19 | |
great challenges of our age. And I
think we all recognise as certainly | 6:10:19 | 6:10:24 | |
have in this debate the importance
of supply side which is why the | 6:10:24 | 6:10:29 | |
Chancellor, my right data from the
Chancellor which I am delighted to | 6:10:29 | 6:10:32 | |
see is on the Treasury bench as I
speak made such an important | 6:10:32 | 6:10:35 | |
announcement about funding, for more
housing going forward that we look | 6:10:35 | 6:10:41 | |
at 300,000 new build homes in the
next decade. The point has been made | 6:10:41 | 6:10:49 | |
that they have suggested that prices
may increase by 20% as a result of | 6:10:49 | 6:10:56 | |
the measures, but a point I will
make is that that is an observation | 6:10:56 | 6:11:00 | |
based on the measure love. Does not
take into account the supply-side | 6:11:00 | 6:11:05 | |
measures that we are introducing.
Turning now Mr Deputy Speaker to | 6:11:05 | 6:11:12 | |
amendment ten, 11, 12 relating to
taxes and supplement. I give way to | 6:11:12 | 6:11:20 | |
my right honourable friend. Thank
you for giving way, I would like to | 6:11:20 | 6:11:25 | |
make a suggestion on the MM and he
talks about, concerns | 6:11:25 | 6:11:36 | |
This would make all taxis exempt
this year rather than just the new | 6:11:36 | 6:11:42 | |
electric capable vehicles. As my
right honourable friend knows from | 6:11:42 | 6:11:44 | |
our discussions on taxis, we have
serious concerns about air quality | 6:11:44 | 6:11:49 | |
in the capital, and for him to
project his view on whether it is | 6:11:49 | 6:11:54 | |
better to bring forth... Please, do
not try to make a speech on | 6:11:54 | 6:12:08 | |
intervention. Thank you, Mr Deputy
Speaker. In response... On on behalf | 6:12:08 | 6:12:19 | |
of my constituency, we look very
careful at proposals to bring | 6:12:19 | 6:12:23 | |
forward our electric vehicles. He
talks a bring forward this | 6:12:23 | 6:12:28 | |
exception, the important thing is
with we look forward up -- look to | 6:12:28 | 6:12:31 | |
bring it forward, we should look
solely at the element that relates | 6:12:31 | 6:12:37 | |
to low emission vehicles, rather
than to all taxis as the amendments | 6:12:37 | 6:12:42 | |
do, as put forward by it the member
up from Belford North. What I can | 6:12:42 | 6:12:47 | |
say is having listened to the
representations from my honourable | 6:12:47 | 6:12:50 | |
friends who have just intervened and
the one who has before this -- these | 6:12:50 | 6:12:57 | |
amendments, we must simple -- the
pathetically looked forward -- look | 6:12:57 | 6:13:03 | |
at the issue... Bring forward the
exception that the one year, and I | 6:13:03 | 6:13:09 | |
know that my honourable friend, the
exchequer secretary, will surely be | 6:13:09 | 6:13:13 | |
meeting with the London taxi
company, and he will be furthering | 6:13:13 | 6:13:18 | |
those discussions with them. In the
one minute remaining, Mr Deputy | 6:13:18 | 6:13:22 | |
Speaker, perhaps I could turn to new
clause ten, calling for a few of the | 6:13:22 | 6:13:28 | |
consequences of not backdating the
refund of the VAT and response of | 6:13:28 | 6:13:36 | |
Scottish Fire And Rescue Services,
the Chancellor made it clear in the | 6:13:36 | 6:13:39 | |
budget that going forward after
lobbying particularly from our | 6:13:39 | 6:13:44 | |
conservative colleagues on the side
of the House, we would be allowing | 6:13:44 | 6:13:47 | |
such refunds going forward. The
Scottish Government in 2012, when | 6:13:47 | 6:13:51 | |
they entered into the arrangements
they made then, did so knowing the | 6:13:51 | 6:13:55 | |
consequences of those actions, but
we are taking action going forward. | 6:13:55 | 6:14:01 | |
Finally in respect of the
contributions from the honourable | 6:14:01 | 6:14:05 | |
men -- gentlemen, I will give way
shortly, I understand his desire to | 6:14:05 | 6:14:12 | |
have information on the effects of
increases of income taxed by 1%. | 6:14:12 | 6:14:18 | |
There is actually no need for that
now as there is information, time | 6:14:18 | 6:14:23 | |
does not allow me to explain, but I
will speak to him after this debate | 6:14:23 | 6:14:27 | |
about it. On that basis, I hope you
will withdraw his amendment, and I | 6:14:27 | 6:14:31 | |
also take aboard his comments about
dormant companies and pension fund | 6:14:31 | 6:14:39 | |
arrangements. But we have to look to
HMR seats to take those steps to | 6:14:39 | 6:14:44 | |
make sure the scams are prevented.
Thank you. We have no time left... | 6:14:44 | 6:14:52 | |
The question is that clause seven be
reread. As many as are of the | 6:14:52 | 6:15:00 | |
opinion, say "aye". To the contrary,
"no". | 6:15:00 | 6:15:12 | |
The question is that the new clause
seven be reread. As many as are of | 6:16:47 | 6:16:53 | |
the opinion, say "aye". To the
contrary, "no". Nick Smith for the | 6:16:53 | 6:16:57 | |
noes. | 6:16:57 | 6:17:07 | |
Open doors! | 6:23:07 | 6:23:17 | |
Order! Order. The ayes to the right,
228. The noes to the left, 305. | 6:28:43 | 6:29:05 | |
Thank you Tom. The ayes to the
right, 128. Order. If you do not | 6:29:05 | 6:29:15 | |
want to hear the result, I do. The
ayes to the right, 228, the noes, | 6:29:15 | 6:29:23 | |
305, the noes have it. Unlock. We
now come to new clause ten which is | 6:29:23 | 6:29:32 | |
formally. The question is new plus
ten to the Bill, As many as are of | 6:29:32 | 6:29:40 | |
the opinion, say "aye". To the
contrary, "no".. Clear the lobbies. | 6:29:40 | 6:29:54 | |
Order! The question is not new
clause can be added to the Bill as | 6:32:09 | 6:32:18 | |
many of that opinion at ayes. The
contrary noes. The tallies for the | 6:32:18 | 6:32:24 | |
ayes are Brendan and cried. -- Greg. | 6:32:24 | 6:32:32 | |
Closed doors. | 6:37:50 | 6:37:56 | |
Order! Order! The ayes to the right,
to 52. A note to the left, 305. | 6:42:14 | 6:42:31 | |
The ayes to the right, 252, the noes
to the left, that noes have it. | 6:42:36 | 6:42:44 | |
Unlock. We now come to amendment six
to move formally. The question is it | 6:42:44 | 6:42:59 | |
be made. As many as are of the
opinion, say "aye".. The contrary | 6:42:59 | 6:43:02 | |
know. The ayes habit. The question
is that amendment can be made. As | 6:43:02 | 6:43:11 | |
many as are of the opinion, say
"aye". To the contrary, "no". | 6:43:11 | 6:43:25 | |
The question is that amendment had
be made. As many as are of the | 6:44:01 | 6:44:04 | |
opinion, say "aye". To the contrary,
"no". For the noes, I have George | 6:44:04 | 6:44:12 | |
and Greg. | 6:44:12 | 6:44:22 |